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Section 1. Subsection (a) of section 1109 of the insurance law, as
amended by chapter 246 of the laws of 2005, is amended to read as
follows:
(a) An organization complying with the provisions of article forty-
four of the public health law may operate without being licensed under
this chapter and without being subject to any provisions of this chap-
ter, except: (1) to the extent that such organization must comply with
the provisions of this chapter by virtue of such article, and (2) the
provisions of sections three hundred eight, [three hundred thirteen,
three hundred thirty-two,] one thousand three hundred one, one thousand
three hundred two, one thousand three hundred seven, ONE THOUSAND THREE
HUNDRED TWENTY-TWO, WITH REGARD TO HEALTH MAINTENANCE ORGANIZATIONS THAT
ARE DOMICILED IN THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE
OTHER STATE, two thousand one hundred three, two thousand one hundred
twelve, two thousand one hundred fourteen, two thousand one hundred
fifteen, two thousand one hundred seventeen, two thousand one hundred
twenty-three, two thousand six hundred eight-a, two thousand six hundred
twelve, three thousand two hundred twenty-four-a, four thousand three
hundred eight, four thousand three hundred seventeen, four thousand
three hundred eighteen, four thousand three hundred twenty, four thou-
sand three hundred twenty-one, four thousand three hundred twenty-two
and four thousand three hundred twenty-three of this chapter.
S 2. The section heading of section 1322 of the insurance law, as
added by chapter 215 of the laws of 1993, is amended to read as follows:
Risk-based capital for life [and] INSURANCE COMPANIES, accident and
health insurance companies, CORPORATIONS ORGANIZED PURSUANT TO ARTICLE
FORTY-THREE OF THIS CHAPTER, AND CERTAIN HEALTH MAINTENANCE ORGANIZA-
TIONS.
S 3. Paragraph 3 of subsection (a) of section 1322 of the insurance
law, as added by chapter 215 of the laws of 1993, is amended to read as
follows:
(3) "Domestic insurer" means any authorized life insurance company or
accident and health insurance company incorporated or organized under
any law of this state; CORPORATION ORGANIZED PURSUANT TO ARTICLE FORTY-
THREE OF THIS CHAPTER; OR HEALTH MAINTENANCE ORGANIZATION DOMICILED IN
THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE OTHER STATE.
S 4. Subsection (b) and paragraph 1 of subsection (c) of section 1322
of the insurance law, as added by chapter 215 of the laws of 1993, are
amended to read as follows:
(b) Applicability. This section shall apply to every authorized life
insurance company and accident and health insurance company INCORPORATED
OR ORGANIZED UNDER ANY LAW OF THIS STATE; CORPORATION ORGANIZED PURSUANT
TO ARTICLE FORTY-THREE OF THIS CHAPTER; OR HEALTH MAINTENANCE ORGANIZA-
TION DOMICILED IN THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE
OTHER STATE.
(1) Every domestic insurer OTHER THAN A HEALTH MAINTENANCE ORGANIZA-
TION DOMICILED IN THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE
OTHER STATE shall, on or prior to each March fifteenth, AND EVERY SUCH
HEALTH MAINTENANCE ORGANIZATION, ON OR PRIOR TO EACH APRIL FIFTEENTH
(the "filing date"), prepare and submit to the superintendent a report
of its RBC levels as of the end of the calendar year just ended, in a
form and containing such information as is required by the RBC
instructions. In addition, the insurer shall file the RBC report:
(A) With the National Association of Insurance Commissioners in
accordance with the RBC instructions; and
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(B) With the insurance commissioner in any state in which the insurer
is authorized to do business, upon the written request of the insurance
commissioner. The insurer shall file the RBC report by the later of:
(i) The filing date; or
(ii) Fifteen days after the date of the request.
S 5. Subparagraph (D) of paragraph 2 of subsection (c) of section 1322
of the insurance law, as added by chapter 215 of the laws of 1993, is
amended to read as follows:
(D) All other business risks and such other [relevent] RELEVANT risks
as are set forth in the RBC instructions.
S 6. Paragraph 1 of subsection (d) of section 1322 of the insurance
law, as added by chapter 215 of the laws of 1993, is amended to read as
follows:
(1) "Company action level event" means, with respect to a domestic
insurer:
(A) The filing by the insurer of a RBC report indicating that: (i) The
insurer's total adjusted capital is greater than or equal to its regula-
tory action level RBC but less than its company action level RBC; or
(ii) (I) The insurer has total adjusted capital [which] THAT is great-
er than or equal to its company action level RBC but less than the prod-
uct of [2.5] 3.0 and its authorized control level RBC; and
(II) there is a negative trend;
(B) The notification by the superintendent to the insurer of an
adjusted RBC report that indicates the occurrence of an event described
in item (i) or (ii) of subparagraph (A) of this paragraph, provided the
insurer does not challenge the adjusted RBC report under subsection (h)
of this section; or
(C) If, under subsection (h) of this section, the insurer challenges
an adjusted RBC report that indicates the occurrence of an event
described in item (i) or (ii) of subparagraph (A) of this paragraph,
THEN the notification by the superintendent to the insurer that the
superintendent has, after a hearing, rejected the insurer's challenge.
S 7. Paragraphs 2 and 3 of subsection (l) of section 1322 of the
insurance law, as added by chapter 215 of the laws of 1993, are amended
to read as follows:
(2) In the event of [an] A regulatory action level event under subpar-
agraph (A), (B) or (C) of paragraph one of subsection (e) of this
section the superintendent shall take the actions required under
subsection (d) of this section.
(3) In the event of [an] A regulatory action level event under subpar-
agraph (D), (E), (F), (G), (H) or (I) of paragraph one of subsection (e)
of this section or an authorized control level event, the superintendent
shall take the actions required under subsection (e) of this section
with respect to the insurer.
S 8. This act shall take effect immediately.
PART B
Section 1. Sections 2328 and 2329 of the insurance law, as amended by
chapter 102 of the laws of 2011, are amended to read as follows:
S 2328. Certain motor vehicle insurance rates; prior approval. For the
periods February first, nineteen hundred seventy-four through August
second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand [fourteen] SEVENTEEN, no changes in rates, rating plans, rating
rules and rate manuals applicable to motor vehicle insurance, including
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no-fault coverages under article fifty-one of this chapter, shall be
made effective until approved by the superintendent, notwithstanding any
inconsistent provisions of this article; provided, however, that changes
in such rates, rating plans, rating rules and rate manuals may be made
effective without such approval if the rates [which] THAT result from
such changes are no higher than the insurer's rates last approved by the
superintendent. This section shall apply only to policies covering loss-
es or liabilities arising out of ownership of a motor vehicle used prin-
cipally for the transportation of persons for hire, including a bus or a
school bus as defined in sections one hundred four and one hundred
forty-two of the vehicle and traffic law.
S 2329. Motor vehicle insurance rates; excess profits. In accordance
with regulations prescribed by the superintendent, each insurer issuing
policies [which] THAT are subject to article fifty-one of this chapter,
including policies of motor vehicle personal injury liability insurance
or policies of motor vehicle property damage liability insurance or
insurance for loss or damage to a motor vehicle, shall establish a fair,
practicable, and nondiscriminatory plan for refunding or otherwise cred-
iting to those purchasing such policies their share of the insurer's
excess profit, if any, on such policies. An excess profit shall be a
profit beyond a percentage rate of return on net worth attributable to
such policies, computed in accordance with the regulation required by
section two thousand three hundred twenty-three of this article, and
determined by the superintendent to be so far above a reasonable average
profit as to amount to an excess profit, taking into consideration the
fact that losses or profits below a reasonable average profit will not
be recouped from such policyholders. Each plan shall apply to policy
periods for the periods January first, nineteen hundred seventy-four
through August second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand [fourteen] SEVENTEEN. In prescribing such regulations the
superintendent may limit the duration of such plans, waive any require-
ment for refund or credit [which] THAT he or she determines to be de
minimis or impracticable, adopt forms of returns [which] THAT shall be
made to him or her in order to establish the amount of any refund or
credit due, establish periods and times for the determination and
distribution of refunds and credits, and shall provide that insurers
receive appropriate credit against any refunds or credits required by
any such plan for policyholder dividends and for return premiums [which]
THAT may be due under rate credit or retrospective rating plans based on
experience.
S 2. Paragraph 2 of subsection (l) of section 3425 of the insurance
law, as amended by chapter 102 of the laws of 2011, is amended to read
as follows:
(2) The superintendent shall collect, analyze and compile such reports
with regard to the number of new insureds, non-renewed insureds and
business written by each insurer in each rating territory of each such
insurer and, in each case, the class of insureds (including age and sex)
affected so that a statistical analysis of the results obtained pursuant
to subsections (f) and (m) of this section shall be provided to each
house of the legislature by March fifteenth, in the years nineteen
hundred ninety-two, nineteen hundred ninety-six, nineteen hundred nine-
ty-eight, two thousand one, two thousand six, two thousand seven, two
thousand eight, two thousand eleven [and], two thousand fourteen, AND
TWO THOUSAND SEVENTEEN.
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S 3. Paragraphs 1 and 2 and the opening paragraph of paragraph 3 of
subsection (m) of section 3425 of the insurance law, as amended by chap-
ter 102 of the laws of 2011, are amended to read as follows:
(1) Paragraphs eight and nine of subsection (a), subsection (f) and
subparagraphs (B) and (E) of paragraph one of subsection (j) of this
section shall not apply to any new covered policy of automobile insur-
ance voluntarily written on or after August first, nineteen hundred
eighty-five and prior to January first, nineteen hundred eighty-six, and
on or after August second, two thousand one and prior to the effective
date of the property/casualty insurance availability act, and on or
after June thirtieth, two thousand [fourteen] SEVENTEEN, but the legal
rights granted to insurers or policyholders under such provisions shall
not be extinguished or impaired thereby.
(2) In lieu of such provisions, paragraph seven of subsection (a),
subparagraph (A) of paragraph one of subsection (j) and paragraph three
of this subsection shall apply to such automobile insurance policies
[which] THAT are newly and voluntarily written to have an effective date
on or after August first, nineteen hundred eighty-five and prior to
January first, nineteen hundred eighty-six, and on or after August
second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June thir-
tieth, two thousand [fourteen] SEVENTEEN.
On and after August first, nineteen hundred eighty-five and prior to
January first, nineteen hundred eighty-six, and on or after August
second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June thir-
tieth, two thousand [fourteen] SEVENTEEN, no notice of nonrenewal or
conditional renewal of such covered automobile insurance policies
referred to in this subsection shall be issued to become effective
during the required policy period unless it is based upon a ground for
which the policy could have been cancelled or unless it is based upon
one or more of the following grounds [which] THAT occurred during the
thirty-six month period ending on the last day of the fourth month
preceding the month of the effective date of such notice of nonrenewal
or conditional renewal:
S 4. Subsection (f) of section 2305 of the insurance law, as amended
by chapter 102 of the laws of 2011, is amended to read as follows:
(f) Subsection (a) of this section shall be of no force or effect
during the period August third, two thousand one through the day before
the effective date of the property/casualty insurance availability act,
and after June thirtieth, two thousand [fourteen] SEVENTEEN. During the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and again
commencing on July first, two thousand [fourteen] SEVENTEEN, all rates
previously subject to subsection (a) of this section, other than rates
[which] THAT are not required to be filed pursuant to subsection (b) of
section two thousand three hundred ten of this article or [which] THAT
have been suspended from the filing requirement pursuant to section two
thousand three hundred eleven of this article, shall become subject to
subsections (b), (c) and (d) of this section. All other provisions of
this article applicable to kinds of insurance or insurance activities
the rates for which are subject to prior approval under subsection (b)
of this section shall apply to kinds of insurance the rates for which
were previously subject to subsection (a) of this section or the rates
for which are not required to be filed pursuant to subsection (b) of
section two thousand three hundred ten of this article or the rates for
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which have been suspended from the filing requirement pursuant to
section two thousand three hundred eleven of this article.
S 5. Section 2341 of the insurance law is REPEALED.
S 6. Section 2342 of the insurance law, as amended by chapter 102 of
the laws of 2011, is amended to read as follows:
S 2342. Expiration of certain provisions. The provisions of subsection
(c) of section two thousand three hundred seven, section two thousand
three hundred eight, subsection (a) of section two thousand three
hundred ten, sections two thousand three hundred sixteen, two thousand
three hundred twenty, two thousand three hundred twenty-three, two thou-
sand three hundred twenty-six, and two thousand three hundred thirty-
five, AND subsection (b) of section two thousand three hundred thirty-
six [and section two thousand three hundred forty-one] of this article
shall cease to be of any force or effect during the period August third,
two thousand one through the day before the effective date of the
property/casualty insurance availability act, and after June thirtieth,
two thousand [fourteen] SEVENTEEN.
S 7. Subsection (h) of section 2344 of the insurance law, as amended
by chapter 102 of the laws of 2011, is amended to read as follows:
(h) This section shall cease to be of any force or effect during the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and after
June thirtieth, two thousand [fourteen] SEVENTEEN, except that rates
shall reflect the likely reductive cost effects reasonably attributable
to the statutory provisions specified in paragraph one of subsection (g)
of this section.
S 8. Subsection (g) of section 5412 of the insurance law, as amended
by chapter 102 of the laws of 2011, is amended to read as follows:
(g) The provisions of this section shall cease to be of any force or
effect on or after June thirtieth, two thousand [fourteen] SEVENTEEN,
except that policies issued or other obligations incurred by the associ-
ation shall not be impaired by the expiration of this section and the
association shall continue for the purpose of servicing such policies
and performing such obligations.
S 9. Paragraph 3 of subsection (c) of section 6302 of the insurance
law, as amended by chapter 490 of the laws of 2011, is amended to read
as follows:
(3) until [June thirtieth, two thousand fourteen] DECEMBER
THIRTY-FIRST, TWO THOUSAND SIXTEEN, a domestic property/casualty insur-
ance company that maintains at all times a surplus to policyholders of
at least twice the minimum surplus to policyholders required to be main-
tained for the kinds of insurance that it is authorized to write in this
state, or an insurer licensed pursuant to article sixty-one of this
chapter as a reciprocal insurer that maintains at all times a surplus to
policyholders of at least the minimum surplus to policyholders required
to be maintained for the kinds of insurance that it is authorized to
write in this state, provided that the domestic property/casualty insur-
ance company or reciprocal insurer: (A) has total direct premiums
comprised of at least ninety percent medical malpractice insurance; (B)
assumes reinsurance premiums in an amount that is less than five percent
of total direct premiums written; and (C) writes ninety percent of its
total direct premiums in this state.
S 10. This act shall take effect immediately.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by a court of compe-
tent jurisdiction to be invalid, such judgment shall not affect, impair,
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or invalidate the remainder thereof, but shall be confined in its opera-
tion to the clause, sentence, paragraph, subdivision, section or part
thereof directly involved in the controversy in which such judgment
shall have been rendered. It is hereby declared to be the intent of the
legislature that this act would have been enacted even if such invalid
provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A and B of this act shall be as
specifically set forth in the last section of such Parts.