senate Bill S7514

Signed by Governor Amended

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 30 / May / 2012
    • REFERRED TO INSURANCE
  • 01 / Jun / 2012
    • AMEND (T) AND RECOMMIT TO INSURANCE
  • 01 / Jun / 2012
    • PRINT NUMBER 7514A
  • 12 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 12 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1159
  • 12 / Jun / 2012
    • PASSED SENATE
  • 12 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2012
    • REFERRED TO INSURANCE
  • 18 / Jun / 2012
    • SUBSTITUTED FOR A10432
  • 18 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.331
  • 18 / Jun / 2012
    • PASSED ASSEMBLY
  • 18 / Jun / 2012
    • RETURNED TO SENATE
  • 21 / Sep / 2012
    • DELIVERED TO GOVERNOR
  • 03 / Oct / 2012
    • SIGNED CHAP.489

Summary

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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Bill Details

Versions:
S7514
S7514A
Legislative Cycle:
2011-2012
Law Section:
Insurance Law
Laws Affected:
Rpld & add §1325, amd § §2343 sub§ (c), Ins L
Versions Introduced in 2011-2012 Legislative Cycle:
A10432

Sponsor 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.

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

                                  7514

                            I N  S E N A T E

                              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.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15992-01-2

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