S4712-2011 Actions

• 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

S4712-2011 Memo

BILL NUMBER:S4712

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 1108 of the Insurance Law to add a new
subsection (k) that includes 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. 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 to the Superintendent of the
Department of Insurance showing compliance with the rules and
regulations of the Department.

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 1108 of the Insurance Law which includes a
host of instances when certain parties are exempt from licensing and
other requirements to add one additional exemption. The new
subsection (k) adds any private air ambulance service that solicits
membership subscriptions, accepts membership applications, charges
membership fees, and provides air ambulance services to the list.

This bill also subdivides the new subsection (k) to provide additional
requirements for air ambulance companies to qualify under the
exemption.

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.

S4712-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         4712
 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
 

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  1108  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 subsection in section 1108
 of the insurance law, we create an environment conducive  to  air  ambu
 lance  companies while creating protections for their membership and the
 people within their catchment area.
 

S 2.

Section 1108 of the insurance law is  amended  by  adding  a  new
 subsection (k) to read as follows:

 (K)   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)  POSTS  A  SURETY  BOND  WITH  ONE  OR MORE SURETY COMPANIES TO BE
 APPROVED BY THE DEPARTMENT OF HEALTH, IN THE  AMOUNT  OF  FIVE  THOUSAND
 DOLLARS FOR EVERY ONE THOUSAND SUBSCRIBERS OR PORTION THEREOF;
 (3)  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;
 (4) PRODUCT IS ONLY OFFERED BY PROVIDERS OF THE SERVICE; AND
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD10652-03-1
 
       S. 4712                             2
 (5) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS SECTION TO  THE
 SUPERINTENDENT  PURSUANT  TO  RULES  AND  REGULATIONS PROMULGATED BY THE
 DEPARTMENT.
 

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.

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