Relates to private air ambulance service insurance exemptions.

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S4712B-2011 Actions

• Jun 18, 2012: referred to insurance
• Jun 18, 2012: DELIVERED TO ASSEMBLY
• Jun 18, 2012: PASSED SENATE
• Jun 14, 2012: ORDERED TO THIRD READING CAL.1256
• Jun 14, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jun 11, 2012: PRINT NUMBER 4712E
• Jun 11, 2012: AMEND (T) AND RECOMMIT TO INSURANCE
• Apr 19, 2012: PRINT NUMBER 4712D
• Apr 19, 2012: AMEND AND RECOMMIT TO INSURANCE
• Mar 6, 2012: PRINT NUMBER 4712C
• Mar 6, 2012: AMEND (T) AND RECOMMIT TO INSURANCE
• Jan 5, 2012: PRINT NUMBER 4712B
• Jan 5, 2012: AMEND AND RECOMMIT TO INSURANCE
• Jan 4, 2012: REFERRED TO INSURANCE
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 20, 2011: referred to insurance
• Jun 20, 2011: DELIVERED TO ASSEMBLY
• Jun 20, 2011: PASSED SENATE
• Jun 20, 2011: ORDERED TO THIRD READING CAL.1421
• Jun 20, 2011: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jun 7, 2011: PRINT NUMBER 4712A
• Jun 7, 2011: AMEND AND RECOMMIT TO INSURANCE
• Apr 15, 2011: REFERRED TO INSURANCE

S4712B-2011 Votes

S4712B-2011 Memo

BILL NUMBER:S4712B

TITLE OF BILL:
An act
to amend the insurance law, in relation to private air ambulance service

PURPOSE:
To allow private air ambulance services to offer membership
subscriptions.

SUMMARY:
Section 1 outlines the legislative intent.

Section 2 amends section 1101 of the Insurance Law to add a new
subsection (b) to exempt a private air ambulance service that
solicits membership subscriptions, accepts membership applications,
charges membership fees, and provides air ambulance services in the
list of insurers exempt from licensing and other requirements in
certain instances. The new subsection also specifies that to be
exempt, such services must have a valid operating certificate from
the Department of Health, post an appropriate surety bond, provide a
statement within membership materials that their service doesn't
constitute insurance, and be the only service to offer the product
for sale, and requires such entity to submit evidence of compliance
to the Superintendent of the Department of Insurance and to the
Secretary of State. Definitions for "air ambulance service" and
"subscription service" are given.

Section 3 provides the enacting clause.

JUSTIFICATION:
In addition to the unique beauty New York State's broad and diverse
landscape provides, it also creates some vast rural areas that are
difficult to access. Recreational enthusiasts and residents in our
State's most rural areas enjoy the breadth of space but lack easy
access to major transportation routes. This can be especially
problematic in emergency situations.

Air ambulances are helicopters used in emergency medical situations
when a traditional ambulance cannot reach the scene or transport the
patient easily or quickly enough. Air ambulance crews are supplied
with equipment and professional training that enable them to
provide medical treatment to a critically injured or ill patient in
flight. With the use of helicopters, the professional pilots are able
to get the medical personnel to the patient more quickly and
transport patients to a hospital faster, therefore providing
consistently superior critical care.

Many of New York's most rural areas can be hours away from trauma
centers. One such area is northern New York. Four years ago, northern
New York lost the MEDEVAC services of the Military Assistance to
Safety and Traffic unit at Fort Drum in Jefferson County. Now air
ambulances come from Saranac Lake or Syracuse which severely
lengthens response times and are weather dependent especially in the
winter months. Travel of traditional ambulances can be unpredictable
and inconsistent. Syracuse provides the closest level 1 trauma center


to the region which for some areas in northern New York can be 3
hours by traditional ambulance in good conditions. Like other areas
of the State, the people and visitors of northern New York would
greatly benefit from the presence of a professional air ambulance team.

Low call volume and the expense of running a full-time air ambulance
service, has made it difficult to attract companies to New York's
rural regions. By allowing air ambulance companies to solicit
membership subscriptions, we offer a way to mediate the high cost of
doing business in New York.

Under current law, soliciting of membership subscriptions for air
ambulance services is considered a form of medical insurance.

This bill amends section 1101 of the Insurance Law which provides the
definition of insurance.
Section 1108 includes a host of instances when certain parties are
exempt from licensing and other requirements to add one additional
exemption. The new subsection (b) in section 1101 exempts any private
air ambulance service that solicits membership subscriptions, accepts
membership applications, charges membership fees, and provides air
ambulance services to the list.

Under the new law, air ambulance companies have to have a valid
operating certificate from the Department of Health.

Such services will also have to post a surety bond with one or more
companies, approved by the Department of Health, in the amount of
$5,000 for every 1,000 subscribers. This provision will provide
financial protection for the obligees if the air ambulance company
were to break its contract or discontinue service for some reason.

This bill also specifies that the company provide a statement within
membership materials that their service doesn't constitute insurance.
While it shouldn't be confusing for consumers, it's important to be
clear that a subscription does not replace medical insurance.

This proposal also disallows any other company from selling
memberships on behalf of the air ambulance company which will assist
with customer relations.

Under this bill, the final subdivision of the new subsection requires
the air ambulance company to submit evidence to the Superintendent of
the Department of Insurance showing compliance with the rules and
regulations of the Department.

By enacting this legislation we recognize the need of rural
communities in New York to have fast, effective emergency medical
service. By attracting air ambulance companies to New York, we'll be
filling a need for medical transport and service that saves lives.

Furthermore, the legislation allows air ambulance companies to solicit
membership subscriptions and provides the additional service on an
unsubsidized, tax-free basis which eases the burden on rural
municipalities.

LEGISLATIVE HISTORY:


New bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become law.
Effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on
its effective date is authorized to be made on or before such
effective date.

S4712B-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   4712--B

                         2011-2012 Regular Sessions

                              I N  SENATE

                               April 15, 2011
                                 ___________

  Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
    printed to be committed to the Committee  on  Insurance  --  committee
    discharged, bill amended, ordered reprinted as amended and recommitted
    to  said  committee  --  recommitted  to the Committee on Insurance in
    accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
    amended,  ordered reprinted as amended and recommitted to said commit-
    tee

  AN ACT to amend the insurance law, in relation to private air  ambulance
    service

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Legislative intent. The legislature hereby finds the insur-
  ance law inadequate in its current form as  section  1101  of  such  law
  provides  no exemptions for air ambulance companies wishing to subscribe
  memberships. Some areas of the state are severely lacking in air  trans-
  port  and rescue services. By creating a new paragraph in subsection (b)
  of section 1101 of the insurance law, we intend to exclude these  compa-
  nies  as  insurance and create an environment conducive to air ambulance
  companies while creating protections for their membership and the people
  within their catchment area.
    S 2. Subsection (b) of section 1101 of the insurance law is amended by
  adding a new paragraph 8 to read as follows:

    (8) (A) FOR PURPOSES OF THIS PARAGRAPH:

    (I) "AIR AMBULANCE SERVICE" SHALL MEAN AN AMBULANCE SERVICE THAT  USES
  AIRCRAFT TO TRANSPORT PERSONS IN NEED OF MEDICAL CARE IN ACCORDANCE WITH
  SUBDIVISION TWO OF SECTION THREE THOUSAND ONE OF THE PUBLIC HEALTH LAW.
    (II)  "SUBSCRIPTION SERVICE" SHALL MEAN ACCEPTING LUMP SUM OR PERIODIC
  PAYMENTS IN ADVANCE TO COVER ALL OR SOME PART OF THE COST OF  AIR  AMBU-
  LANCE SERVICES PROVIDED TO A MEMBER SUBSCRIBER;
    (B)  A PRIVATE AIR AMBULANCE SERVICE AS DEFINED IN SUBPARAGRAPH (A) OF
  THIS PARAGRAPH THAT SOLICITS MEMBERSHIP SUBSCRIPTIONS,  ACCEPTS  MEMBER-

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD10652-13-1

 S. 4712--B                          2

  SHIP  APPLICATIONS,  CHARGES MEMBERSHIP FEES, AND PROVIDES AIR AMBULANCE
  SERVICES TO SUBSCRIPTION MEMBERS AND DESIGNATED MEMBERS OF THEIR  HOUSE-
  HOLD  IS NOT AN INSURER, IS NOT IN THE BUSINESS OF INSURANCE, AND IS NOT
  SELLING INSURANCE, IF THE PRIVATE AIR AMBULANCE SERVICE:

    (I)  FURNISHES  A BOND, WITH SUFFICIENT SURETIES, IN AN AMOUNT OF FIVE
  THOUSAND DOLLARS FOR EVERY ONE THOUSAND SUBSCRIBERS OR A PORTION  THERE-
  OF, EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS
  STATE  BY  THE DEPARTMENT OF STATE, TO ENSURE THAT THE STATE OF NEW YORK
  SHALL HAVE ADEQUATE FUNDS TO COMPENSATE MEMBERS IN THE INSTANCE THAT THE
  AIR AMBULANCE SERVICE SHALL NO LONGER HAVE A VALID OPERATING CERTIFICATE
  TO PROVIDE SUCH SERVICE; SUCH BOND SHALL BE IN FAVOR OF  THE  PEOPLE  OF
  THE STATE OF NEW YORK. A COPY OF THE SURETY BOND SHALL BE FILED WITH THE
  OFFICE  OF  THE SECRETARY OF STATE SIMULTANEOUSLY WITH THE FILING OF THE
  STATEMENT REQUIRED BY CLAUSE (IV) OF THIS SUBPARAGRAPH.  THE  MONIES  SO
  HELD  IN  SAID  SURETY  BOND  SHALL AT ALL TIMES EQUAL AN AMOUNT OF FIVE
  THOUSAND DOLLARS FOR EVERY ONE THOUSAND SUBSCRIBERS OR A PORTION  THERE-
  OF, EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS
  STATE  BY  THE DEPARTMENT OF STATE, TO ENSURE THAT THE STATE OF NEW YORK
  SHALL HAVE ADEQUATE FUNDS TO COMPENSATE MEMBERS IN THE INSTANCE THAT THE
  AIR AMBULANCE SERVICE SHALL NO LONGER HAVE A VALID OPERATING CERTIFICATE
  TO PROVIDE SUCH SERVICE. THE MONIES MAY BE WITHDRAWN, FROM TIME TO TIME,
  IN ORDER TO COMPENSATE MEMBERS IN THE INSTANCE THAT  THE  AIR  AMBULANCE
  SERVICE  SHALL  NO  LONGER HAVE A VALID OPERATING CERTIFICATE TO PROVIDE
  SUCH SERVICE;
    (II) PROVIDES IN THE MEMBERSHIP MATERIALS A DESCRIPTION OF  THE  TERMS
  UNDER  WHICH  THE  MEMBER  IS  PROVIDED AIR AMBULANCE SERVICE INCLUDING,
  LENGTH OF TIME THE MEMBERSHIP COVERS, AIR AMBULANCE SERVICE  COSTS  THAT
  ARE  COVERED  BY  MEMBERSHIP FEES, EXCLUSIONS FROM PROVISION OF SERVICE,
  DISCOUNT AMOUNTS AND A STATEMENT PROVIDING CLEAR  DISCLOSURE  TO  APPLI-
  CANTS  AND  MEMBERS  THAT THIS IS NOT INSURANCE AND MEMBERSHIP CANNOT BE
  CONSIDERED SECONDARY INSURANCE COVERAGE OR A SUPPLEMENT TO ANY INSURANCE
  COVERAGE;
    (III) OFFERS SUBSCRIPTION MEMBERSHIPS  SOLELY  BY  THE  AIR  AMBULANCE
  PROVIDER  HOLDING A VALID OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT
  OF HEALTH; AND
    (IV) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS  PARAGRAPH  TO
  THE SUPERINTENDENT.
    S 3. This act shall take effect on the one hundred twentieth day after
  it  shall have become a law. Effective immediately, the addition, amend-
  ment and/or repeal of any rule or regulation necessary for the implemen-
  tation of this act on its effective date is authorized to be made on  or
  before such effective date.