BILL NUMBER:A10107

TITLE  OF BILL:  An act to amend the insurance law, in relation to ambu-
lance subscription or membership programs

PURPOSE OR GENERAL IDEA  OF  BILL:    This  bill  legitimizes  ambulance
subscriptions  or  membership  programs,  arrangements in which a person
pays an ambulance service an annual fee so that the participant in  such
a  program  will  not  incur  any  out  of  pocket expenses if ambulance
services are needed.

SUMMARY OF SPECIFIC PROVISIONS:  Adds new section 1124 to the  insurance
law,  which  exempts  voluntary  ambulance  services  from the licensing
requirements set forth in Article 11 of the insurance law if 1)  such  a
service  is  available  to anyone and 2) the entity or representative of
the ambulance subscription notifies the  participant  that  the  service
provider  is  not  contractually obligated to provide an ambulance every
time a participant makes such a request.  Furthermore,  the  participant
must  acknowledge this qualification in writing prior to paying for such
services.

JUSTIFICATION:  This bill is necessary to legitimize the  use  of  ambu-
lance  subscriptions  and  membership programs that are not only helpful
and cost-saving for participants, but also constitute an important fund-
ing source for volunteer ambulance services.

              

Ambulance services across New York State have utilized such programs  to
finance  their  operations.  A number of these programs were reviewed by
the Insurance Department in the 1990s and 1990s and were deemed to be in
compliance with the Insurance Laws.  However,  opinions  issued  by  the
Insurance  Department in 2001 and investigations commenced by the Attor-
ney General's Office in 2009 caused many  ambulance  companies,  fearing
administrative  action or legal prosecution, to terminate such programs,
despite the fact that no law exists  that  specifically  prohibits  such
services  and no formal charges or complaints have ever been filed. As a
result, ambulance companies have suffered substantial  loss  of  income.
Voluntary,  non-profit  ambulance  services tend that to serve rural and
less populated areas have been particularly  impacted  by  cessation  of
ambulance subscription programs.

It   is   worth   noting  that  several  other  states  allow  ambulance
subscription programs, many of which are operated  by  city  and  county
governments,  and  the  United States Fire Administration, a unit of the
Federal Emergency Management Agency, recommends such Programs as a fund-
ing source for fire and EMS services.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  This act shall take effect immediately.