Senate Bill S8074A

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

                                 8074--A

                            I N  S E N A T E

                              June 4, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Insurance --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

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 Section 1325 of the insurance law is  REPEALED  and  a  new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

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

                                                           LBD17620-02-0

S. 8074--A                          2

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
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.