|SAME AS||No Same As|
|Amd SS1301, 1311, 2343, 6108, & 6111, rpld & add S1325, add S1326, Ins L|
|Provides an exemption to certain provisions relating to risk-based capital for property/casualty insurance companies; repeals certain provisions relating thereto; relates to financial regulation of medical malpractice insurance liability companies.|
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STATE OF NEW YORK ________________________________________________________________________ 3283 2015-2016 Regular Sessions IN ASSEMBLY January 22, 2015 ___________ Introduced by M. of A. WEPRIN -- read once and referred 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 in relation to the finan- cial regulation of medical malpractice liability insurance companies; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsection (a) of section 1301 of the insurance law is 2 amended by adding two new paragraphs 19 and 20 to read as follows: 3 (19) For those stock and non-stock companies to which subparagraph (B) 4 of paragraph two of subsection (b) of section one thousand three hundred 5 twenty-four of this article apply, the amount of the surcharge on premi- 6 ums to satisfy a projected deficiency that is attributable to the premi- 7 um levels established pursuant to section forty of chapter two hundred 8 sixty-six of the laws of nineteen hundred eighty-six, as such surcharge 9 is provided in such chapter, whether or not such surcharge is actually 10 imposed by the superintendent; provided, however, that such surcharges, 11 if imposed, will be subject to the limitations provided for in this 12 chapter relating to the amounts to be collected in a given policy year. 13 (20) For reciprocal insurers organized and licensed pursuant to arti- 14 cle sixty-one of this chapter to write medical malpractice insurance as 15 that term is defined in subsection (b) of section five thousand five 16 hundred one of this chapter, the amount of any assessment authorized by 17 subsections (a) and (b) of section six thousand one hundred eight of 18 this chapter; provided, however, that such assessments, if imposed, will 19 be subject to the limitations provided for in this chapter relating to 20 the amounts to be collected in a given policy year. 21 § 2. Section 1311 of the insurance law is amended by adding a new 22 subsection (e) to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07502-01-5A. 3283 2 1 (e) In determining the total admitted assets of an insurer the super- 2 intendent shall include in such determination all assets allowed as 3 admitted assets pursuant to subsection (a) of section one thousand three 4 hundred one of this article. 5 § 3. Section 1325 of the insurance law is REPEALED and a new section 6 1325 is added to read as follows: 7 § 1325. Exemption. (a) For the purposes of exempting certain insurance 8 companies from the provisions of section one thousand three hundred 9 twenty-four of this article, the superintendent shall exempt those stock 10 and non-stock insurance companies to which subparagraph (B) of paragraph 11 two of subsection (b) of such section applies. 12 (b) The superintendent shall no later than June thirtieth, two thou- 13 sand seventeen promulgate, for application during the next succeeding 14 calendar year, and after consultation with the commissioner of health 15 and domestic medical malpractice insurers writing medical malpractice 16 insurance in this state, a regulation which provides a separate finan- 17 cial security standard and rate approval process for those stock and 18 non-stock insurance companies to which subparagraph (B) of paragraph two 19 of subsection (b) of section one thousand three hundred twenty-four of 20 this article apply. Such standard shall be sufficiently distinct from 21 that provided for in this chapter or related regulation or utilized by 22 the superintendent in the examination of property and casualty carriers 23 so as to reflect the unique market, financial and legal obligations 24 imposed upon medical malpractice insurance carriers. Further, the regu- 25 lation shall include new statutory financial statement blanks and exam- 26 ination protocols consistent with the new standard. 27 (c) Until such time as the superintendent promulgates regulations in 28 accordance with subsection (b) of this section, those stock and non- 29 stock insurance companies to which subparagraph (B) of paragraph two of 30 subsection (b) of section one thousand three hundred twenty-four of this 31 article applied, and notwithstanding any other provision of law to the 32 contrary, a carrier may file for and use a rate increase not to exceed 33 five percent of the carrier's current rate upon a filing with the super- 34 intendent for the next succeeding policy year if such submission is 35 filed with the superintendent no later than July fifteenth of the year 36 prior to which it is to be applied. If a carrier does not file such 37 rate adjustment within such time frame, then such insurer shall be 38 subject to the rate approval process in place at the time this section 39 shall take effect. 40 § 4. The insurance law is amended by adding a new section 1326 to read 41 as follows: 42 § 1326. Statutory association membership. For those stock and non- 43 stock companies to which subparagraph (B) of paragraph two of subsection 44 (b) of section one thousand three hundred twenty-four of this article 45 apply, no liabilities arising from any membership in any statutory asso- 46 ciation shall be due and owing from such companies unless and until such 47 liabilities can only be satisfied by a contribution from the insurer, 48 and the insurer is notified of same not less than one year prior to the 49 expected date that such obligation will be due and owing. Such liabil- 50 ities shall not be aggregated and shall not include contingent liabil- 51 ities, but reflect specific claims liabilities actually due and owing or 52 expected to be due and owing in that year for which there are no other 53 association or pool resources, including current premium income, to 54 satisfy such obligations; further, companies, upon receipt of notice of 55 such obligation, shall have the right to audit any such association and 56 its request for coverage of such liabilities.A. 3283 3 1 § 5. Subsection (c) of section 2343 of the insurance law, as amended 2 by chapter 489 of the laws of 2012, is amended to read as follows: 3 (c) Notwithstanding any other provision of this chapter, no applica- 4 tion for an order of rehabilitation or liquidation of a domestic insurer 5 whose primary liability arises from the business of medical malpractice 6 insurance, as that term is defined in subsection (b) of section five 7 thousand five hundred one of this chapter, shall be made on the grounds 8 specified in subsection (a) or (c) of section seven thousand four 9 hundred two of this chapter at any time [ prior to December thirty-first,10 two thousand sixteen]. 11 § 6. Subsection (b) of section 6108 of the insurance law is amended to 12 read as follows: 13 (b) If the admitted assets of any such insurer are at any time insuf- 14 ficient for the payment of losses and expenses after providing for all 15 other liabilities of such insurer and the minimum surplus to policyhold- 16 ers required by this chapter, the advisory committee shall, within thir- 17 ty days thereafter, order an assessment for the amount necessary to pay 18 such losses and expenses, and authorize the attorney-in-fact to collect 19 from each subscriber liable therefor a pro rata share of the amount of 20 such assessment, subject to the limit specified in the contract of such 21 subscriber and to maintain an action therefor in the name of the attor- 22 ney-in-fact. For the purposes of this subsection, admitted assets shall 23 include a presumption of a surcharge or assessment, where applicable, or 24 both, having been authorized by the advisory council or directed by the 25 superintendent consistent with the terms of the subscribers' contracts 26 and collected by an insurer. 27 § 7. Subsection (c) of section 6111 of the insurance law is amended to 28 read as follows: 29 (c) The contingent liability of subscribers for additional premiums or 30 assessments shall [ not] be included as an asset in the financial state- 31 ment of a reciprocal insurer. 32 § 8. This act shall take effect immediately.