Exempts private air ambulance services from insurance licensing and other requirements if the private ambulance service meets certain enumerated qualifications.
TITLE OF BILL: An act to amend the insurance law, in relation to private air ambulance service
PURPOSE OR GENERAL IDEA OF BILL: To clarify that a subscription plan offered by a non-profit air ambulance service is exempt from insurance licensing and other requirements.
SUMMARY OF PROVISIONS: Section 1108 of the insurance law is amended by adding a new subsection (m) stating that a private air ambulance services that solicits membership subscriptions does not fall under the purview of insurance provided it meets certain criteria.
JUSTIFICATION: Subscription plans have a long history of serving as a means for charitable donations to emergency medical transporters. Many volunteer ambulance companies and air medical transports have used subscription plans as a way to encourage their communities' participation and to supplement their financial needs" In recent years, there were some concerns that these subscription plans may have fallen within the definition of insurance and therefore needed to be licensed by the New York State Insurance Department. This bill will clarify that a subscription plan offered by a non-profit air ambulance service is not insurance and therefore allowable.
Air medical services generally handle on-scene emergency calls which include car accidents, skiing injuries, and industrial accidents. The rapid transport and quality of care received in the air has saved thousands of lives and improved recovery outcomes for thousands more. Emergency and inter-facility air transportation is expensive and the cost is not wholly covered by insurance. Non-profit providers struggle to keep their organizations viable and staffed with high quality and well trained individuals yet their services are essential, particularly in rural parts of New York. Rather than face losing these vital non-profits, this legislation would allow these organizations to use a subscription plan as one of their many fundraising tools.
PRIOR LEGISLATIVE HISTORY: 2011/2012 - S.3518 Referred to Senate Committee on Insurance 2009/2010 - S.8076
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the thirtieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 1152 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance 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. Subsection (k) of section 1108 of the insurance law, as added by chapter 246 of the laws of 2012, is relettered subsection (l) and a new subsection (m) is added to read as follows: (M) A PRIVATE AIR AMBULANCE SERVICE THAT SOLICITS MEMBERSHIP SUBSCRIPTIONS, ACCEPTS MEMBERSHIP APPLICATIONS, CHARGES MEMBERSHIP FEES, AND PROVIDES AIR AMBULANCE SERVICES TO SUBSCRIPTION MEMBERS AND DESIG- NATED MEMBERS OF THEIR HOUSEHOLD IS NOT AN INSURER IF THE PRIVATE AIR AMBULANCE SERVICE: (1) HAS A VALID OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT OF HEALTH; (2) HAS NON-PROFIT STATUS; (3) HAS BEEN IN OPERATION IN NEW YORK FOR AT LEAST TWO YEARS; (4) PROVIDES IN THE MEMBERSHIP MATERIALS A STATEMENT PROVIDING CLEAR DISCLOSURE TO APPLICANTS AND MEMBERS THAT THIS IS NOT INSURANCE AND MEMBERSHIP CANNOT BE CONSIDERED SECONDARY INSURANCE COVERAGE OR A SUPPLEMENT TO ANY INSURANCE COVERAGE; (5) PRODUCT IS ONLY OFFERED BY PROVIDERS OF THE SERVICE; AND (6) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS SECTION TO THE SUPERINTENDENT PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE DEPARTMENT. S 2. This act shall take effect on the thirtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01874-01-3