senate Bill S7764

Signed by Governor

Relates to authorization to set certain insurance rates for risk-based capital and property/casualty and insurance and health maintenance organizations; repealer

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Sponsor

Bill Status


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

  • 05 / Jun / 2014
    • REFERRED TO INSURANCE
  • 09 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 09 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1226
  • 10 / Jun / 2014
    • PASSED SENATE
  • 10 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 10 / Jun / 2014
    • REFERRED TO INSURANCE
  • 19 / Jun / 2014
    • SUBSTITUTED FOR A10013
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.507
  • 19 / Jun / 2014
    • PASSED ASSEMBLY
  • 19 / Jun / 2014
    • RETURNED TO SENATE
  • 30 / Jun / 2014
    • DELIVERED TO GOVERNOR
  • 30 / Jun / 2014
    • SIGNED CHAP.78

Summary

Relates to authorization to set certain insurance rates for risk-based capital and property/casualty and insurance and health maintenance organizations.

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Bill Details

See Assembly Version of this Bill:
A10013
Versions:
S7764
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Rpld ยง2341, amd Ins L, generally

Sponsor Memo

BILL NUMBER:S7764

TITLE OF BILL: An act to amend the insurance law, in relation to
expanding the definition of a domestic insurer and the applicability
of risk-based capital to certain health organizations (Part A); and to
amend the insurance law, in relation to extending prior approval for
certain motor vehicle insurance rates, adding an additional date for
the superintendent to collect, analyze and compile periodic reports
regarding certain property/casualty insurance policies, extending the
date for exemptions on certain property/casualty insurance policies,
and extending certain rate periods, in relation to extending
additional powers of the New York property insurance underwriting
association and in relation to extending the authority for certain
domestic property/casualty insurers to write in the free trade zone;
and to repeal section 2341 of such law relating to the consumers
advisory council; business advisory council (Part B)

PURPOSE:

The purpose of this bill is to: (1) apply the risk-based capital
("RBC") requirements to organizations organized pursuant to Insurance
Law Article 43 ("Article 43 corporations") and certain health
maintenance organizations ("HMOs") (Part A); (2) amend the Insurance
Law in order to extend several important provisions of the law that
promote the stability of the property/casualty insurance market (Part
B)

SUMMARY OF PROVISIONS:

Part A

Section 1 of the bill would amend Insurance Law section 1109(a) to
apply Insurance Law section 1322 to HMOs that are domiciled in New
York and certified or operating in at least one other state (a
"domestic multi-state HMO").

Section 2 would amend the title of Insurance Law section 1322 to
include Article 43 corporations and domestic multi-state HMOs.

Section 3 would amend Insurance Law section 1322(a)(3) to include
within the definition of "domestic insurer" an Article 43 corporation
and domestic multi-state HMO.

Section 4 would amend Insurance Law section 1322(b) to state that
section 1322 applies to Article 43 corporations and domestic
multi-state HMOs.

Section 4 also would amend Insurance Law section 1322(c)(1) to require
a domestic multi-state HMO to submit an RBC report to the
Superintendent of Financial Services on or prior to each April 15.

Section 5 would amend Insurance Law section 1322(c)(2)(D) to correct a
typographical error.

Section 6 would amend Insurance Law section 1322(d)(1) to increase the
RBC trend test trigger from 2.5 times the authorized control level RBC
to 3.0 times.


Section 6 also would amend Insurance Law section 1322(d)(1) to make
grammatical changes.

Section 7 would amend Insurance Law section 1322 to make grammatical
changes.

Section 8 would provide for an immediate effective date.

Part B

Section 1 of the bill would amend Insurance Law sections 2328 and 2329
to extend through June 30, 2017 provisions regarding the prior
approval of premium rates for insurance of certain motor vehicles and
provisions regarding excess profits.

Section 2 would amend Insurance Law section 3425(1)(2) to extend
through June 30, 2017 the report that the Superintendent of Financial
Services ("Superintendent") must provide to the Legislature, with
respect to noncommercial property/casualty insurance, regarding 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.

Section 3 would amend Insurance Law section 3425(m) to extend through
June 30, 2017 the "2% rule" and "2-for-1 credit," which pertain to
non-renewal requirements for non-commercial automobile insurance.

Section 4 would amend Insurance Law section 2305(f) to extend through
June 30, 2017 the provisions in Insurance Law section 2305(a) relating
to exceptions from prior approval for certain insurance rates.

Section 5 would repeal Insurance Law section 2341, which pertains to
the consumers advisory council and business advisory council.

Section 6 would amend Insurance Law section 2342 to extend through
June 30, 2017, the sunset date for Insurance Law sections 2307(c),
2308, 2310(a), 2316, 2320, 2323, 2326, 2335, and 2336(b) to June 30,
2017.

Section 7 would amend Insurance Law section 2344(h) to extend through
June 30, 2017, the applicability of the flexible rate limitations in
problem markets for certain commercial property/casualty insurance
rates.

Section 8 would amend Insurance Law section 5412(g) to extend through
June 30, 2017, provisions that allow the New York Property Insurance
Underwriting Association ("NYPIUA") to write certain coverage upon a
determination by the Superintendent that coverage is unavailable in a
particular market.

Section 9 would amend Insurance Law section 6302(c)(3) to extend until
December 31, 2016, the Superintendent's ability to issue a special
license to write insurance in the free trade zone to a domestic
property/casualty insurance company that maintains at all times a
surplus to policyholders of at least twice the minimum surplus to
policyholders required to be maintained for the kinds of insurance


that it is authorized to write in this state, or an insurer licensed
pursuant to Insurance Law Article 61 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 insurance 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.

Section 10 would provide that this bill is effective immediately.

JUSTIFICATION:

Part A would amend the Insurance Law to conform to the National
Association of Insurance Commissioners' ("NAIC's") RBC for Health
Organizations Model Act. Specifically, this bill would make domestic
multi-state HMOs and Article 43 corporations subject to the RBC
requirements set forth in Insurance Law section 1322. The bill also
would increase the RBC trend test trigger from 2.5 times the
authorized control level RBC to 3.0 times. Effective January 1, 2015,
the NAIC's RBC for Health Organizations Model Act will become an
accreditation standard and conformance therewith will be necessary for
the Department of Financial Services ("Department") to maintain its
accreditation status with the NAIC.

Many of the provisions included in Part B are important consumer
protections that have been in place for years regarding rate
regulation in certain areas of insurance. Several provisions of the
bill also enable insurers to continue making certain types of
insurance readily available in New York.

Extending the sunset dates for the Article 23 provisions assures the
insurance industry that the file-and-use and flexible rating
provisions will remain in effect. These file-and-use and flexible
rating approaches enable insurers to respond to changing market
conditions in a more expedited manner than the prior approval
approach, to which the law would revert back if these key provisions
of Article 23 are permitted to sunset.

Insurance Law section 3425 provides an equitable balance among the
often competing forces of policyholders' expectations, insurers'
legitimate prerogatives in evaluating and assuming risk, and the
realities of the private passenger automobile insurance marketplace.
It provides the foundation for a reliable automobile insurance market
that promotes stability and protects consumers against arbitrary
cancellation or nonrenewal of coverage. The 2% rule is also an
essential component of ongoing efforts to depopulate the New York
Automobile Insurance Plan("NYAIP").

Furthermore, the bill extends the sunset date for Insurance Law
section 5412(g) which will promote the availability and affordability
of property/casualty insurance and the stability of the
property/casualty insurance market in New York by extending the


Superintendent's authority to authorize NYPIUA to write coverage for
an underserved voluntary market.

The bill also extends the sunset date for Insurance Law section
6302(c)(3) to continue the expanded ability of New York-authorized
insurers to compete more effectively with London and out-of-state
markets.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

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

                                  7764

                            I N  S E N A T E

                              June 5, 2014
                               ___________

Introduced  by  Sen.  SEWARD -- 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  expanding  the  defi-
  nition of a domestic insurer and the applicability of risk-based capi-
  tal  to certain health organizations (Part A); and to amend the insur-
  ance law, in relation to extending prior approval  for  certain  motor
  vehicle insurance rates, adding an additional date for the superinten-
  dent  to  collect,  analyze  and  compile  periodic  reports regarding
  certain property/casualty insurance policies, extending the  date  for
  exemptions   on  certain  property/casualty  insurance  policies,  and
  extending certain rate periods, in relation  to  extending  additional
  powers of the New York property insurance underwriting association and
  in   relation   to   extending  the  authority  for  certain  domestic
  property/casualty insurers to write in the free  trade  zone;  and  to
  repeal  section  2341  of  such law relating to the consumers advisory
  council; business advisory council (Part B)

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law components of legislation relating
to  risk-based  capital,  property/casualty  insurance  provisions  that
sunset.  Each component is wholly contained within a Part identified  as
Parts  A  and  B.  The  effective  date  for  each  particular provision
contained within such Part is set forth in  the  last  section  of  such
Part.  Any  provision  in any section contained within a Part, including
the effective date of the Part, which makes a reference to a section "of
this act", when used in connection with that particular component, shall
be deemed to mean and refer to the corresponding section of the Part  in
which  it  is  found.  Section  three of this act sets forth the general
effective date of this act.

                                 PART A


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15519-01-4

S. 7764                             2

  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

S. 7764                             3

  (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

S. 7764                             4

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.

S. 7764                             5

  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

S. 7764                             6

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,

S. 7764                             7

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.

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