Assembly Bill A11729

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

                                  11729

                          I N  A S S E M B L Y

                            November 24, 2010
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of M. of A. Carrozza) --
  read once and referred to the Committee on Insurance

AN  ACT  to  amend the insurance law, in relation to medical malpractice
  insurance premium discounts for physicians and hospitals for  utiliza-
  tion  of  certain  electronic  health record technology; 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:

  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  Section  1325  of the insurance law is REPEALED and a new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 THE PURPOSES  OF  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 FIFTEEN THOSE STOCK AND NON-STOCK
INSURANCE COMPANIES TO  WHICH  SUBPARAGRAPH  (B)  OF  PARAGRAPH  TWO  OF
SUBSECTION (B) OF SUCH SECTION APPLIES.
  S 2. The insurance law is amended by adding a new section 1326 to read
as follows:
  S 1326. STATUTORY ASSOCIATION MEMBERSHIP; OBLIGATIONS. FOR THOSE STOCK
AND  NON-STOCK  COMPANIES  TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO OF
SUBSECTION (B) OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-FOUR OF THIS
ARTICLE APPLIES, NO LIABILITIES ARISING FROM AN  ASSOCIATION  AUTHORIZED
PURSUANT  TO  SUBPARAGRAPH  (D)  OF  PARAGRAPH  TWO OF SUBSECTION (C) OF
SECTION FIVE THOUSAND FIVE HUNDRED TWO OF THIS CHAPTER SHALL BE DUE  AND
OWING  FROM SUCH COMPANIES UNLESS AND UNTIL SUCH LIABILITIES CAN ONLY BE
SATISFIED, AFTER CONSIDERATION OF  ALL  RESOURCES  OF  THE  ASSOCIATION,
INCLUDING  BUT  NOT LIMITED TO CURRENT PREMIUM INCOME, BY A CONTRIBUTION
FROM SUCH COMPANIES AND THE COMPANIES ARE NOTIFIED OF SAME BY SUCH ASSO-
CIATION OR THE SUPERINTENDENT NOT LESS  THAN  THREE  HUNDRED  SIXTY-FIVE
DAYS  PRIOR  TO  THE  DATE  UPON  WHICH SUCH OBLIGATION SHALL BE DUE AND
OWING, AND SHALL ONLY RELATE TO LIABILITIES THAT ARE  ACTUALLY  DUE  AND
OWING  BY  THE  ASSOCIATION  IN THAT YEAR IN WHICH CONTRIBUTION IS TO BE
MADE. SUCH LIABILITIES SHALL NOT BE AGGREGATED FOR ANY OTHER YEAR EXCEPT
THAT IN WHICH CONTRIBUTION IS DUE AND OWING OR PREVIOUS YEARS  IN  WHICH

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

                                                           LBD17620-03-0

A. 11729                            2

OBLIGATIONS  FOR  CONTRIBUTIONS  HAVE  NOT BEEN SATISFIED; FURTHER, SUCH
LIABILITIES SHALL NOT INCLUDE ANY CONTINGENT LIABILITIES OF THE  ASSOCI-
ATION. COMPANIES, UPON NOTICE OF SUCH OBLIGATION SHALL HAVE THE RIGHT TO
DEMAND  AN AUDIT OF THE ASSOCIATION AND ITS REQUEST FOR COVERAGE OF SUCH
LIABILITIES BY SUCH CONTRIBUTIONS;  PROVIDED,  HOWEVER,  THAT  COMPANIES
SHALL  MAINTAIN  AT  ALL TIMES A RESERVE OF NOT LESS THAN TEN PERCENT OF
ALL SUCH AGGREGATE LIABILITIES OF THE  ASSOCIATION,  AS  SUCH  AGGREGATE
LIABILITIES   ARE  REPORTED  BY  THE  ASSOCIATION  CONSISTENT  WITH  THE
PROVISIONS OF THIS SECTION.
  S 3. Subsection (c) of section 2343 of the insurance law,  as  amended
by section 27 of part B of chapter 58 of the laws of 2008, is amended 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 [June thirtieth] DECEM-
BER THIRTY-FIRST, two thousand [eleven] FIFTEEN.
  S 4. Section 2343 of the insurance law is  amended  by  adding  a  new
subsection (f) to read as follows:
  (F)(1)   THE  SUPERINTENDENT  SHALL,  BY  REGULATION,  PROVIDE  FOR  A
REDUCTION IN THE RATES OF MEDICAL MALPRACTICE INSURANCE PREMIUMS  APPLI-
CABLE  TO PHYSICIANS, HOSPITALS AND NURSING FACILITIES THAT MEANINGFULLY
USE CERTIFIED  ELECTRONIC  HEALTH  RECORD  TECHNOLOGY  PURSUANT  TO  THE
PROVISIONS  OF  THE  FEDERAL AMERICAN RECOVERY   AND REINVESTMENT ACT OF
2009, PUB. L. 111-5. IN PRESCRIBING SUCH REGULATION, THE  SUPERINTENDENT
MAY CONSULT WITH THE COMMISSIONER OF HEALTH. THE REDUCTION DETERMINED BY
THE  SUPERINTENDENT  SHALL BE PROPORTIONATELY RELATED TO THE ACTUARIALLY
CALCULABLE DECREASE IN LOSSES AS A RESULT OF THE MEANINGFUL USE  OF  THE
CERTIFIED ELECTRONIC HEALTH RECORD TECHNOLOGY.
  (2)  THE  SUPERINTENDENT  IS  AUTHORIZED TO CONDUCT A PILOT PROGRAM TO
EVALUATE THE POTENTIAL DECREASE IN LOSSES EXPERIENCED AS A RESULT OF THE
MEANINGFUL USE OF SUCH CERTIFIED ELECTRONIC HEALTH RECORD TECHNOLOGY  TO
DETERMINE  THE  EXTENT  OF ITS BENEFIT AS A RISK MITIGATION ACTIVITY. IN
THE DETERMINATION OF THE REDUCTION PROVIDED FOR IN THIS SUBSECTION,  THE
SUPERINTENDENT SHALL CONSULT WITH THE COMMISSIONER OF HEALTH AND MEDICAL
MALPRACTICE INSURERS AUTHORIZED TO DO BUSINESS IN THIS STATE.
  S  5.  This act shall take effect immediately, provided, however, that
section four of this act shall take effect on the one hundred  twentieth
day after it shall have become a law.