This bill has been amended

Bill S7514-2011

Relates to an exemption to certain provisions of law relating to risk-based capital for property/casualty insurance companies; repealer

Exempts medical malpractice insurance companies from provisions of law relating to the risk based financial standards applying to all property casualty insurance companies until December 31, 2016; extends certain prohibitions on requests for orders of rehabilitation or liquidation for medical malpractice insurance carriers until December 31, 2016.

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  • May 30, 2012: REFERRED TO INSURANCE

Memo

BILL NUMBER:S7514

TITLE OF BILL: An act to amend the insurance law, in relation to an exemption to certain provisions of law relating to risk-based capital for property/casualty insurance companies; and to repeal certain provisions of the insurance law relating thereto

PURPOSE OF BILL: To extend protections against liquidation and the exemption from risk-based capital rules.

SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill repeals section 1325 of the insurance law and adds a new section 1325 to exempt medical malpractice insurance companies from provisions of law relating to the risk based financial standards applying to all property casualty insurance companies pursuant to section 1324 of the insurance law until December 31, 2016.

Section two of the bill amends subsection (c) of section 2343 of the insurance law to extend certain prohibitions on requests for orders of rehabilitation or liquidation for medical malpractice insurance carriers until December 31, 2016.

Section three of the bill provides for an immediate effective date.

JUSTIFICATION: Medical malpractice insurance carriers are unique compared to other insurance carriers in New York, in both their structure and regulation. As such, they have been afforded certain exemptions from various rules pertaining to financial reporting and regulation. These exemptions have been provided in the past by the legislature either because the rules underlying the exemption did not fit within the unique regulatory structure of medical malpractice insurance or had frustrated other higher priority obligations such as continued delivery of health care in many parts of the state. This bill simply extends the exemptions to certain provisions of law until 2016, specifically the protections against liquidation and the exemption from risked-based capital rules.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7514 IN SENATE May 30, 2012 ___________
Introduced by Sen. MARTINS -- 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 an exemption to certain provisions of law relating to risk-based capital for property/casualty insurance companies; and to repeal certain provisions of the insurance law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1325 of the insurance law is REPEALED and a new section 1325 is added to read as follows: S 1325. EXEMPTION. FOR EXEMPTING CERTAIN INSURANCE COMPANIES FROM THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-FOUR OF THIS ARTICLE, THE SUPERINTENDENT SHALL EXEMPT THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN THOSE STOCK AND NON-STOCK INSURANCE COMPANIES TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION (B) OF SUCH SECTION APPLIES. S 2. Subsection (c) of section 2343 of the insurance law is REPEALED and a new subsection (c) is added to read as follows: (C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, NO APPLICA- TION FOR AN ORDER OF REHABILITATION OR LIQUIDATION OF A DOMESTIC INSURER WHOSE PRIMARY LIABILITY ARISES FROM THE BUSINESS OF MEDICAL MALPRACTICE INSURANCE, AS THAT TERM IS DEFINED IN SUBSECTION (B) OF SECTION FIVE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, SHALL BE MADE ON THE GROUNDS SPECIFIED IN SUBSECTION (A) OR (C) OF SECTION SEVEN THOUSAND FOUR HUNDRED TWO OF THIS CHAPTER AT ANY TIME PRIOR TO DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN. S 3. This act shall take effect immediately.

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