NY State Senate Bill 2009-S7465

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 13, 2010	referred to insurance

2009-S7465 (ACTIVE) - Details

See Assembly Version of this Bill:: A10258
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Rpld §7902 sub (a) & (l), rpld & add §7903 sub§ (e), amd Ins L, generally

2009-S7465 (ACTIVE) - Summary

Relates to service contracts; enhances oversight by the NYS insurance department of the service contract business to provide greater protections for service contract holders.

2009-S7465 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7465

  TITLE OF BILL :

An act to amend the insurance law, in relation to service contracts;
and to repeal certain provisions of such law relating thereto


 PURPOSE :

This bill would amend Insurance Law Article 79 to enhance oversight by
the New York State Insurance Department ("Department") of the service
contract business to provide greater protections for service contract
holders.

 SUMMARY OF PROVISIONS :

Sections 1 and 1-a of the bill would amend Insurance Law § 308 to
require service contract providers to respond to requests for
information by the Superintendent of Insurance (the "Superintendent").

Section 2 of the bill would amend Insurance Law § 1101(b)(3-a) to
clarify that heating fuel sellers or deliverers who issue a service
contract, warranty or maintenance agreement are not doing an insurance
business.

Section 3 of the bill would amend Insurance Law § 2302 to make service
contract reimbursement insurance subject to Article 23 of the
Insurance Law, which regulates insurance rates and forms, among other
things.

Section 4 of the bill would amend Insurance Law § 7901 (a)( 4) to
clarify that one of the purposes of Article 79 is to protect service
contract holders. Section 4 would also amend Insurance Law §
7901(b)(1) to make express and implied warranties made for a separate
or additional consideration subject to Article 79, making service
contracts issued by manufacturers or sellers for a separate or
additional consideration subject to the article.

Section 5 of the bill would amend Insurance Law § 7902 to repeal
subsections (a) and (1), which define "appliances" and "systems,"
respectively, and reletters the remaining subsections.  Section 5
would also amend Insurance Law § 7902 to clarify the definitions of
the terms "administrator," "incidental damages," and "service
contract." The amendments to the incidental damages definition creates
a definition that is more suited to service contracts than the
definition contained in the Uniform Commercial Code. The amendments to
the service contract definition remove specific references to
appliances and systems. These types of service contracts do not need
specific reference in the service contract definition; they clearly
constitute service contracts.  Section 5 also amends the service
contract definition to clarify that accidental damage from handling
means accidental damage that results from the normal and customary use
of the product.

Section 5-b of the bill would define the term "motor club."

Section 6 of the bill would amend Insurance Law § 7903(a) to clarify
that service contract providers are subject to Articles 1, 2 and 3 of
the Insurance Law.

Section 7 of the bill would amend Insurance Law § 7903(b)(1) to
require that a provider that does not deliver a service contract to a
purchaser at the time of sale do so within 10 days after the date of
purchase rather than a reasonable time thereafter.

Section 8 of the bill would amend Insurance Law § 7903(c)(1) to repeal
a provision requiring a provider whose service contract reimbursement
insurance has been terminated to comply with another method of
demonstrating financial responsibility within 45 days after the
insurance coverage ends. Section 8 of the bill would further amend
Insurance Law § 7903(c)(2) to establish a $100,000 minimum balance for
the funded reserve account; raising the minimum balance of the
financial security deposit from $50,000 to $100,000; and amending the
formula for calculating the minimum balances of the funded reserve
account and financial security deposit by deleting the offset for
claims paid.

Section 9 of the bill would add a new Insurance Law § 7904(b) to
require that an authorized service contract reimbursement insurer
(SCRI) establish a contingency reserve fund for its service contracts
exposure. The fund shall contain deposits in an amount determined in
accordance with a formula based upon its SCRI writings. Insurers must
obtain approval from the Superintendent prior to making any
withdrawals from the fund.

Section 10 of the bill would add a new Insurance Law § 7903(e) to
require that a provider with a funded reserve account hold the monies
in that account in a fiduciary capacity for the benefit of service
contract holders. New Insurance Law § 7903(e) would also make the
funds in a funded reserve account or financial security deposit exempt
from levy, execution or attachment, or any other recovery by a person
other than a service contract holder or the Superintendent, and
proscribes a provider from assigning, pledging as security, or
otherwise encumbering its funded reserve account and financial
security deposit.

Section 11 of the bill would amend Insurance Law § 7905(k) to require
service contracts that afford the service contract holder a right to
terminate the service contract to include the method for calculating
the refund due to the service contract holder. Section 11 of the bill
also amends Insurance Law § 7905(n) to clarify a service contract
holder's right to return a contract as a right to rescind, and defines
the amount of the refund due as the price the service contract holder
paid for the contract less any claims paid to the holder. This section
further makes clarifying changes to Insurance Law § 7905(b) and (d).

Section 12 of the bill would amend Insurance Law § 7906(b) to clarify
that a provider may not make any false or misleading statement or omit
any material statement, whether the provider does so orally or in
writing.

Section 13 of the bill would amend Insurance Law § 7907(b) to increase
the provider's registration fee from $500 for each biennial period to
$1,000. Section 12 of the bill would also amend Insurance Law §
7907(e) to conform the subsection to changes the bill makes to
Insurance Law § 7910.

Section 14 of the bill would amend Insurance Law § 7907(f) to clarify
that the exemption from other licensing requirements relates only to
service contract business.

Section 15 of the bill would amend Insurance Law § 7907(g) to increase
the provider's biennial application renewal fee from $500 to $1,000.

Section 16 of the bill would amend Insurance Law § 7908 to give the
Superintendent authority to require a provider to maintain additional
information.

Section 17 of the bill would amend Insurance Law § 7910 to set forth
more specific grounds upon which the Superintendent may take

enforcement action. Section 17 would also restructure Insurance Law §
7910 for clarification.

Section 18 of the bill would repeal and add a new Insurance Law § 7912
to replace transition rules which are no longer relevant with a
provision that clarifies that a provider is responsible for all
aspects of the service contract business that it conducts in New York,
irrespective of whether the provider designates an administrator or
allows another person to market or sell its service contracts.

Section 19 of the bill would add a new Insurance Law § 7913 to require
that a provider that ceases to maintain its registration submit a plan
to the Superintendent, subject to approval, that specifies how the
provider will meet its service contract obligations and otherwise
protect service contract providers in New York.

Section 20 of the bill provides that this bill would take effect 180
days after it becomes a law, except that the Superintendent may
promulgate any rule or regulation necessary for the timely
implementation of this bill on its effective date.

 EXISTING LAW :

A service contract is an agreement to perform or indemnify for the
repair or replacement of property covered by the agreement due to a
defect in materials or workmanship or wear and tear. A service
contract provider is the party that is obligated under the service
contract.

Prior to the Legislature's enactment of Article 79 of the Insurance
Law (the "Service Contract Law") in 1997, a provider wishing to do a
service contract business in New York had to become licensed as an
insurer, and comply with the regulatory strictures required for an
insurer, such as the requirement that it hold reserves. The
Legislature enacted Article 79 to provide a means for the Department
to regulate providers without subjecting them to the regulatory
requirements that apply to insurers.

Article 79 governs the marketing, sale, offering for sale, issuance,
making, proposing to make and administration of service contracts by
service contract providers. Article 79 requires a service contract
provider to register with the Department, and to renew the
registration on a biennial basis. Article 79 further requires a
service contract provider to demonstrate its financial responsibility
by one of the following methods: 1) purchasing a service contract
reimbursement insurance policy, 2) maintaining a funded reserve
account (FRA) and placing in trust for the Superintendent a financial
security deposit (FSD), or 3) maintaining net worth or stockholder's
equity of at least $100 million, on its own or in combination with its
consolidated affiliates, including the provider's parent who must also
provide a parental guarantee. Article 79 also requires a provider to
provide a right for purchasers to return a service contract purchased
from the provider, maintain certain records, and refrain from certain
misleading practices.

The Superintendent may suspend or revoke a provider's registration if
the Superintendent finds the provider untrustworthy, or the provider
violates any provision of Article 79 or regulations promulgated
thereunder, or an order of the Superintendent. The Superintendent may
also impose a penalty of not more than $500 per violation, or bring an
action in any court of competent jurisdiction for an injunction and
restitution.

 LEGISLATIVE HISTORY :

This is a new bill.
 STATEMENT IN SUPPORT :

Since the Legislature enacted the Service Contract Law in 1997,
significant consumer, industry and regulatory concerns have arisen
that necessitate amendment to the law.

The FRA and FSD method for demonstrating financial responsibility
needs amendment to better protect service contract holders in New
York. For example, one provider entered into bankruptcy with an FRA
and FSD that was subject to creditors' liens, significantly reducing
the funds available to pay claims of New York service contract
holders. And for other providers that hold the minimum FRA and FSD
balance, the minimum is not enough to ensure that providers will have
sufficient funds available to pay claims of service contract holders
in New York should a provider become insolvent or bankrupt.

This bill would require that the provider's FRA be held in a fiduciary
basis for the benefit of service contract holders, and makes the FRA
and FSD (which is a trust account) exempt from the claims of creditors
other than service contract holders or the Superintendent.  This bill
also increases the minimum amount that a service contract provider
must hold in its FRA and FSD.  The bill's new reserve requirements for
service contract reimbursement insurance (SCRI) insurers ensure
adequate reserving by SCRI insurers for the protection of service
contract holders. Most of the SCRI business in New York is insured by
a small number of insurers, meaning that the risk of provider default
is not well diversified.  Without adequate reserving, the default of
one large provider could adversely affect the service contract holders
of many other providers. The bill also makes SCRI policies issued by
authorized insurers subject to Article 23 of the Insurance Law's form
and rate filing requirements. The Department has found that many
existing policy forms do not conform to the provisions of the law.

Moreover, the bill strengthens the Superintendent's tools to address
enforcement problems that have arisen since the Legislature enacted
the Service Contract Law in 1997. The bill adds additional grounds
upon which the Superintendent may take enforcement action, including a
provider, as a business practice, denying valid service contract
claims. The bill also requires a service contract provider that ceases
to maintain its registration to submit a plan to the Superintendent
specifying how the provider will meet its service contract obligations
under existing service contracts. Further, the bill specifies that the
jurisdiction of the Superintendent over a registered provider
continues until such time as the provider's obligations under its
service contracts have terminated, regardless of whether the provider
continues its registration.

Finally, because Chapter 614 of the Laws of 1997, which enacted the
Service Contract Law, exempted all warranties, the Department opined
that manufacturer or seller service contracts were warranties and thus
exempt from Article 79. This creates an unlevel playing field between
service contract providers on the one hand and manufacturers and
sellers on the other hand, even though the contractual provisions may
otherwise be the same. Indeed, in some cases manufacturers and sellers
used affiliated entities, which are subject to the Service Contract
Law.  Many large manufacturers and sellers have recently had major
financial difficulties and several large retail chains have filed for
bankruptcy, leaving the public unprotected. This bill would clarify
that manufacturers or sellers that issue service contracts on their
own products are subject to Article 79, while maintaining the
exemption for warranties that are sold without separate or additional
consideration.

 BUDGET IMPLICATIONS :

This bill would not have an impact on State finances.
 EFFECTIVE DATE :
This bill would take effect 180 days after it becomes a law, except
that the Superintendent may promulgate any rule or regulation
necessary for the timely implementation of this bill on its effective
date.

2009-S7465 (ACTIVE) - Bill Text download pdf

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

                                  7465

                            I N  S E N A T E

                             April 13, 2010
                               ___________

Introduced  by  Sen. BRESLIN -- (at request of the New York State Insur-
  ance Department) -- 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 service contracts; 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. Subsection (a) of section 308  of  the  insurance  law,  as
amended  by  chapter  11  of  the  laws  of  2008, is amended to read as
follows:
  (a) The superintendent may also  address  to  any  health  maintenance
organization,  any  authorized  insurer  or  rate  service organization,
SERVICE CONTRACT PROVIDER, or officers thereof, any inquiry in  relation
to  its  transactions  or  condition  or any matter connected therewith.
Every corporation or person so addressed shall reply in writing to  such
inquiry promptly and truthfully, and such reply shall be, if required by
the superintendent, subscribed by such individual, or by such officer or
officers  of  a corporation, as he shall designate, and affirmed by them
as true under the penalties of perjury. In the event any corporation  or
person  does  not  provide  a good faith response to an inquiry from the
superintendent pursuant to this section relating to accident  insurance,
health  insurance,  accident  and health insurance or health maintenance
organization coverage, OR SERVICE CONTRACTS, within a time period speci-
fied by the superintendent of not less than fifteen business  days,  the
superintendent  is  authorized to levy a civil penalty, after notice and
hearing, against such corporation or person not to exceed  five  hundred
dollars  per  day  for  each day beyond the date specified by the super-
intendent for response, but in no event shall such penalty exceed  seven
thousand five hundred dollars.
  S  1-a. Subsection (a) of section 308 of the insurance law, as amended
by chapter 499 of the laws of 2009, is amended to read as follows:
  (a) (1) The superintendent may also address to any health  maintenance
organization,  life settlement provider, life settlement intermediary or
its officers, or any authorized insurer or  rate  service  organization,

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

                                                           LBD15518-03-0

S. 7465                             2

SERVICE  CONTRACT PROVIDER, or officers thereof, any inquiry in relation
to its transactions or condition  or  any  matter  connected  therewith.
Every  corporation or person so addressed shall reply in writing to such
inquiry promptly and truthfully, and such reply shall be, if required by
the superintendent, subscribed by such individual, or by such officer or
officers  of  a  corporation, as the superintendent shall designate, and
affirmed by them as true under the penalties of perjury.
  (2) In the event any corporation or person does  not  provide  a  good
faith  response  to  an inquiry from the superintendent pursuant to this
section relating to accident insurance, health insurance,  accident  and
health  insurance or health maintenance organization coverage OR SERVICE
CONTRACTS or with respect to life  settlements,  within  a  time  period
specified  by the superintendent of not less than fifteen business days,
the superintendent is authorized to levy a civil penalty,  after  notice
and  hearing,  against  such  corporation  or  person not to exceed five
hundred dollars per day for each day beyond the date  specified  by  the
superintendent  for  response, but in no event shall such penalty exceed
seven thousand five hundred dollars.
  S 2. Paragraph 3-a of subsection (b) of section 1101 of the  insurance
law,  as  amended by chapter 486 of the laws of 2000, is amended to read
as follows:
  (3-a) Notwithstanding the foregoing, the marketing,  sale,  offer  for
sale,  issuance,  making,  proposing  to  make  or administration of THE
FOLLOWING SHALL NOT CONSTITUTE  DOING  AN  INSURANCE  BUSINESS  IN  THIS
STATE:
  (A)  a service contract pursuant to article seventy-nine of this chap-
ter [or];
  (B) A  warranty,  [service  contract  or]  maintenance  agreement,  OR
SERVICE  CONTRACT AS DEFINED IN SUBSECTION (K) OF SECTION SEVEN THOUSAND
NINE HUNDRED TWO OF THIS CHAPTER, ISSUED BY A  SELLER  OR  DELIVERER  OF
HEATING  FUEL AND conditioned upon or otherwise associated with the sale
or supply of heating fuel [shall not constitute doing an insurance busi-
ness in this state]; OR
  (C) A CONTRACT OR AGREEMENT TO PROVIDE TOWING,  RENTAL,  OR  EMERGENCY
ROAD SERVICES MADE BY A MOTOR CLUB THAT IS A NOT-FOR-PROFIT ORGANIZATION
AND  THAT  HAS  BEEN  OPERATING  AS  SUCH IN THIS STATE FOR AT LEAST TEN
YEARS, OR ANY SUCCESSOR THERETO.
  S 3. Subsection (a) of section 2302 of the insurance law, paragraphs 5
and 6 as amended and paragraph 7 as added by chapter 614 of the laws  of
1997, is amended to read as follows:
  (a)  This  article  shall  apply  to all kinds of insurance written on
risks or operations in this state by an insurer authorized to  do  busi-
ness in this state except:
  (1)  reinsurance (other than joint reinsurance to the extent stated in
section two thousand three hundred seventeen of this article);
  (2) accident and health insurance;
  (3) annuities, life insurance, including provisions for  non-cancella-
ble disability benefits in conjunction therewith;
  (4) marine insurance (other than inland marine insurance and insurance
upon automobiles, airplanes, seaplanes, dirigibles or other aircraft);
  (5) marine protection and indemnity insurance; AND
  (6)  insurance  issued  by  an  assessment  cooperative fire insurance
company[; and
  (7) service contract reimbursement insurance].
  S 4. Section 7901 of the insurance law, as added by chapter 614 of the
laws of 1997,  paragraphs  2  and  3  as  amended  and  paragraph  4  of

S. 7465                             3

subsection  (b)  as added by chapter 257 of the laws of 1998, is amended
to read as follows:
  S 7901. Scope and purposes. (a) The purposes of this article are to:
  (1)  create  a  legal  framework within which service contracts may be
sold in this state;
  (2) encourage the marketing and  developing  of  more  economical  and
effective means of providing services under service contracts; [and]
  (3)  permit and encourage fair and effective competition among differ-
ent systems of providing and paying for these services; AND
  (4) PROTECT SERVICE CONTRACT HOLDERS.
  (b) This article shall not apply to:
  (1) Express or implied warranties MADE WITHOUT SEPARATE OR  ADDITIONAL
CONSIDERATION;
  (2) Maintenance agreements;
  (3) Warranties, service contracts or maintenance agreements offered by
public  utilities  on  their transmission devices to the extent they are
regulated by the public service commission; [and]
  (4) Warranties, service contracts and maintenance agreements that  are
MADE  BY  A  SELLER OR DELIVERER OF HEATING FUEL AND conditioned upon or
otherwise associated with the sale or supply of heating fuel[.]; AND
  (5) A CONTRACT OR AGREEMENT TO PROVIDE TOWING,  RENTAL,  OR  EMERGENCY
ROAD SERVICES MADE BY A MOTOR CLUB THAT IS A NOT-FOR-PROFIT ORGANIZATION
AND  THAT  HAS  BEEN  OPERATING  AS  SUCH IN THIS STATE FOR AT LEAST TEN
YEARS, OR ANY SUCCESSOR THERETO.
  S 5. Subsections (a) and (l) of section 7902 of the insurance law  are
REPEALED,  subsections  (b),  (c),  (d),  (m)  and  (n)  are  relettered
subsections (a), (b), (c), (l) and (m).
  S 5-a. Subsections (a), (b), (c) and (k) of section 7902 of the insur-
ance law, as added by chapter 614 of the laws of 1997, subsection (k) as
amended by chapter 264 of the laws of 2006, and  subsections  (a),  (b),
and (c) as relettered by section five of this act are amended to read as
follows:
  (a)  "Administrator"  means any person [designated by a], OTHER THAN A
PROVIDER'S EMPLOYEE, WHO THE provider APPOINTS, to [be  responsible  for
administration  of] ADMINISTER THE PROVIDER'S service contracts, includ-
ing servicing, claims management and processing, recordkeeping, customer
service and collection of fees, BUT WHO IS  NOT  AN  OBLIGOR  UNDER  THE
SERVICE CONTRACTS THE PERSON ADMINISTERS.
  (b)  "Incidental [damages" has the meaning as set forth in subdivision
one of section 2-715 of the uniform commercial code, as such  definition
may  be  amended  from time to time] EXPENSES" MEANS EXPENSES ASSOCIATED
WITH OR ARISING OUT OF LOSSES COVERED UNDER A SERVICE CONTRACT.
  (c) "Maintenance agreement" means a contract of limited duration  that
provides  for  scheduled  maintenance  of property, other than contracts
providing for the repair or replacement of such property due to a defect
in materials or workmanship, or wear and tear.
  (k) (1) "Service contract" means a contract or agreement[, for a sepa-
rate or additional consideration,] for a specific duration, to:
  (A) perform the repair, replacement or  maintenance  of  property,  or
indemnification  for repair, replacement or maintenance, due to a defect
in materials or workmanship or FROM wear  and  tear[,  with  or  without
additional provision for];
  (B)  REPAIR  OR  REPLACE A TIRE OR WHEEL AS A RESULT OF DAMAGE ARISING
FROM A ROAD HAZARD AND THAT IS MADE BY OR FOR THE MANUFACTURER OR SELLER
OF THE MOTOR VEHICLE TIRE; OR

S. 7465                             4

  (C) PROVIDE MOTOR VEHICLE TOWING, RENTAL OR EMERGENCY ROAD SERVICE AND
THAT IS MADE BY A MOTOR CLUB.
  (2)  A  SERVICE  CONTRACT  AS  DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
PARAGRAPH ONE OF THIS SUBSECTION, MAY ALSO PROVIDE THE FOLLOWING:
  (A) indemnity payments for  incidental  [damages]  EXPENSES,  provided
THAT  any  such  indemnity  payment  per  incident  shall not exceed the
purchase  price  of  the  property  [serviced.  Service  contracts   may
include]; OR
  (B) MOTOR VEHICLE towing, rental and emergency road service[, and].
  (3)  A  SERVICE CONTRACT AS DESCRIBED IN SUBPARAGRAPH (A) OF PARAGRAPH
ONE OF THIS SUBSECTION, may also provide for the repair, replacement  or
maintenance of property for damage resulting from power surges and acci-
dental  damage from handling RESULTING FROM THE NORMAL AND CUSTOMARY USE
OF THE PROPERTY.   [Service contracts  may  also  include  contracts  to
repair,  replace  or  maintain  residential appliances and systems. Such
term shall also mean a contract or agreement made by or for the manufac-
turer or seller of a motor vehicle tire for repair or replacement of the
tire or wheel as the result of damage arising from a road hazard.]
  S 5-b. Section 7902 of the insurance law is amended by  adding  a  new
subsection (d) to read as follows:
  (D)  "MOTOR CLUB" MEANS AN ASSOCIATION OR CORPORATION THAT ENTERS INTO
CONTRACTS OR AGREEMENTS WITH MEMBERS OR SUBSCRIBERS UNDER WHICH  MEMBERS
OR  SUBSCRIBERS RECEIVE SERVICES AND BENEFITS ASSOCIATED WITH THE USE OR
OPERATION OF A MOTOR VEHICLE.
  S 6. Subsection (a) of section 7903 of the insurance law, as added  by
chapter 614 of the laws of 1997, is amended to read as follows:
  (a)  [Nothwithstanding]  NOTWITHSTANDING  any  other provision of this
chapter to the contrary, the marketing, sale, offering for  sale,  issu-
ance,  making, proposing to make and administration of service contracts
by any provider, administrator or other person, shall be exempt from all
other provisions of this chapter, OTHER THAN ARTICLES ONE, TWO AND THREE
OF THIS CHAPTER. A provider may[, but is not required to,]  appoint  [an
administrator  or  other  designee]  ONE  OR  MORE ADMINISTRATORS to [be
responsible for] ADMINISTER  any  or  all  of  the  [administration  of]
PROVIDER'S service contracts [and compliance with this article].
  S  7.  Paragraph  1 of subsection (b) of section 7903 of the insurance
law, as added by chapter 614 of the laws of 1997, is amended to read  as
follows:
  (1) provides a receipt for, or other written evidence of, the purchase
of  the  service  contract and a copy of the terms and conditions of the
service contract to the service contract holder  where  the  sale  takes
place  in  a  retail  store  or  other  place of business. A copy of the
service contract in all cases shall be provided to the service  contract
holder  within  [a reasonable period of time] TEN DAYS after the date of
purchase of the service contract; and
  S 8. Paragraphs 1 and 2 of subsection  (c)  of  section  7903  of  the
insurance  law,  paragraph  1  as  amended by chapter 578 of the laws of
2000, and paragraph 2 as added by chapter 614 of the laws of  1997,  are
amended to read as follows:
  (1)  insure  the  performance  of all [its] THE PROVIDER'S obligations
under all service contracts pursuant to a service contract reimbursement
insurance policy issued  by  an  insurer  authorized  to  issue  service
contract reimbursement insurance in this state [or procured by an excess
line  licensee  pursuant to section two thousand one hundred eighteen of
this chapter. In the event the provider fails to insure its  obligations
pursuant  to  this  paragraph  or in the event that such insurance shall

S. 7465                             5

lapse or be terminated, the provider shall comply with either  paragraph
two  or three of this subsection within forty-five days of the insurance
lapse or termination];
  (2)  (A)  maintain  a  funded reserve account for [its] THE PROVIDER'S
obligations under [its] THE  PROVIDER'S  service  contracts  issued  and
outstanding  in  this state, which reserve account (i) contains reserves
in an amount not less than forty  percent  of  the  gross  consideration
received  upon  the  sale  of[,  less  claims paid under,] all [its] THE
PROVIDER'S service contracts then in force, but not less than [zero] ONE
HUNDRED THOUSAND DOLLARS, and (ii) shall be subject to  examination  and
review by the superintendent; and
  (B)  place in trust [with] FOR the superintendent a financial security
deposit, having a value of not less  than  five  percent  of  the  gross
consideration  received  upon the sale of[, less claims paid under,] all
service contracts issued and then in force, but not  less  than  [fifty]
ONE  HUNDRED  thousand dollars, consisting of one or more of the follow-
ing:
  (i) a surety bond issued by an [authorized surety] INSURER  AUTHORIZED
IN THIS STATE TO WRITE FIDELITY AND SURETY INSURANCE;
  (ii)  securities of the type eligible for deposit by authorized insur-
ers in this state;
  (iii) cash; or
  (iv) a letter of credit issued by a qualified United States  financial
institution; or
  S  9.  Subsection (e) of section 7903 of the insurance law is REPEALED
and a new subsection (e) is added to read as follows:
  (E)(1) A PROVIDER SHALL MAINTAIN THE  MONIES  IN  THE  FUNDED  RESERVE
ACCOUNT  PROVIDED FOR IN SUBPARAGRAPH (A) OF PARAGRAPH TWO OF SUBSECTION
(C) OF THIS SECTION IN A FIDUCIARY  CAPACITY  FOR  THE  BENEFIT  OF  THE
SERVICE CONTRACT HOLDERS. THE ACCOUNT'S TITLE SHALL INDICATE ITS FIDUCI-
ARY NATURE.
  (2)  THE  PROVIDER'S FUNDED RESERVE ACCOUNT AND ITS FINANCIAL SECURITY
DEPOSIT SHALL BE EXEMPT FROM LEVY, EXECUTION, AND ATTACHMENT,  OR  OTHER
ACTION  IN  WHICH  A  PERSON OTHER THAN A SERVICE CONTRACT HOLDER OR THE
SUPERINTENDENT SEEKS RECOVERY  OR  COLLECTION  OF  A  DEBT  AGAINST  THE
PROVIDER.
  (3)  A  PROVIDER  SHALL  NOT  ASSIGN, PLEDGE AS SECURITY, OR OTHERWISE
ENCUMBER THE PROVIDER'S FUNDED RESERVE  ACCOUNT  OR  FINANCIAL  SECURITY
DEPOSIT.
  S  10.  Section  7904 of the insurance law, as added by chapter 614 of
the laws of 1997, is amended to read as follows:
  S 7904. [Required disclosures; service contract  reimbursement  insur-
ance policy] SERVICE CONTRACT REIMBURSEMENT INSURANCE.
  (A) Service contract reimbursement insurance policies insuring service
contracts  issued,  sold  or  offered for sale in this state shall state
that, upon  failure  of  the  provider  to  perform  under  the  service
contract,  including  failure to return the unearned provider fee there-
under, the insurer that issued the service contract reimbursement insur-
ance policy shall pay on behalf of the provider any sums the provider is
legally obligated to pay under the service contract or shall perform the
service which the provider is legally obligated to perform according  to
the  provider's  contractual  obligations  under  the  service contracts
issued or sold by the provider.
  (B)(1) AN AUTHORIZED INSURER THAT ISSUES SERVICE  CONTRACT  REIMBURSE-
MENT  INSURANCE  POLICIES  IN  THIS  STATE SHALL ESTABLISH A CONTINGENCY
RESERVE FUND INTO WHICH IT SHALL DEPOSIT FORTY PERCENT OF  NET  PREMIUMS

S. 7465                             6

RECEIVED  FOR ITS SERVICE CONTRACT REIMBURSEMENT INSURANCE POLICIES LESS
DEPOSITS IN THE UNEARNED PREMIUM RESERVE FUND ESTABLISHED UNDER  SECTION
ONE THOUSAND THREE HUNDRED FIVE OF THIS CHAPTER.
  (2) AN INSURER MAY MAKE A WITHDRAWAL FROM THE SERVICE CONTRACT CONTIN-
GENCY  RESERVE  FUND ONLY WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT.
THE SUPERINTENDENT SHALL GRANT APPROVAL FOR A WITHDRAWAL FROM  THE  FUND
ONLY  TO  THE  EXTENT THAT THE INSURER'S TOTAL EXPOSURE HAS BEEN REDUCED
DUE TO THE EXPIRATION OR OTHER TERMINATION OF SERVICE CONTRACTS THAT  IT
INSURES.
  S  11. Subsections (b), (d), (k) and (n) of section 7905 of the insur-
ance law, as added by chapter 614 of the laws of 1997,  are  amended  to
read as follows:
  (b)  Service  contracts insured under a service contract reimbursement
insurance policy pursuant to [paragarph] PARAGRAPH one of subsection (c)
of section seven thousand nine  hundred  three  of  this  article  shall
contain  a  statement in substantially the following form:  "Obligations
of the provider under this service contract are insured under a  service
contract reimbursement insurance policy. If the provider fails to pay or
provide  service  on  a  claim within sixty days after proof of loss has
been filed, the SERVICE contract holder is  entitled  to  make  a  claim
directly  against  the  insurer under the service contract reimbursement
insurance policy." The service contract shall also state  the  name  and
address  and  a  toll-free  telephone  number  of  the insurer under the
related service contract reimbursement insurance policy.
  (d) Service contracts shall identify [any administrator  if  different
from]  the  provider  [or  seller, the provider], ADMINISTRATOR and [the
service contract] seller.  The identities of such  parties  [are]  SHALL
not  BE  required  to  be  preprinted on the service contract and may be
added to the service contract at the time of sale.    Service  contracts
shall  clearly state the procedure that the service contract holder must
[take] FOLLOW to [obtain service under the terms and conditions  of  the
service contract] FILE A SERVICE CONTRACT CLAIM.
  (k)  Service  contracts  shall state the terms, restrictions or condi-
tions governing termination of the service contract by the  parties  [to
the service contract]. [The] A SERVICE CONTRACT THAT AFFORDS THE SERVICE
CONTRACT  HOLDER A RIGHT TO TERMINATE THE SERVICE CONTRACT SHALL INCLUDE
THE METHOD FOR CALCULATING THE REFUND DUE TO THE SERVICE CONTRACT  HOLD-
ER.    A  provider  [of  the  service contract] WHO TERMINATES A SERVICE
CONTRACT shall mail a written  notice  OF  TERMINATION  to  the  service
contract holder at the last known address of the service contract holder
contained  in the records of the provider at least fifteen days prior to
[cancellation] TERMINATION by the provider.  The notice shall state  the
effective  date of the [cancellation] TERMINATION and the reason for the
[cancellation] TERMINATION.   [Written notice is  not  required  if  the
reason  for  cancellation  is nonpayment of the provider fee, a material
misrepresentation, or a substantial breach  of  duties  by  the  service
contract holder relating to the covered property or its use.]
  (n) [Service contracts] (1) A SERVICE CONTRACT shall [contain a state-
ment  of  the  service  contract  holder's right to return the contract]
STATE THAT THE SERVICE CONTRACT HOLDER MAY RESCIND THE SERVICE  CONTRACT
BY  PROVIDING  WRITTEN  NOTICE  THEREOF  TO THE PROVIDER within at least
twenty days of the date of mailing of the service contract or within  at
least  ten  days  if  the  service  contract is delivered TO THE SERVICE
CONTRACT HOLDER at the time of the sale [or within a longer time  period
permitted  under  the  contract.  If  no  claim  has been made under the

S. 7465                             7

contract, the contract shall be void and the provider  shall  refund  to
the contract holder the full purchase price of the contract].
  (2)  THE  SERVICE  CONTRACT  SHALL  ALSO  STATE THAT THE PROVIDER WILL
REFUND THE FULL PURCHASE PRICE, LESS THE COST OF ANY CLAIM  PAID,  TO  A
SERVICE  CONTRACT  HOLDER  WHO RESCINDS THE SERVICE CONTRACT PURSUANT TO
PARAGRAPH ONE OF THIS SUBSECTION.
  (3) THE SERVICE CONTRACT  SHALL  SPECIFY  THE  ADDRESS  TO  WHICH  THE
SERVICE CONTRACT HOLDER SHALL SEND THE WRITTEN NOTICE OF RESCISSION.
  (4)  The  service contract shall [also] contain a statement that a ten
percent penalty per month shall be added to a refund that  is  not  made
within thirty days of [return] THE DATE THAT THE SERVICE CONTRACT HOLDER
GIVES  THE PROVIDER WRITTEN NOTICE OF RESCISSION of the SERVICE contract
[to the provider].
  S 12. Subsection (b) of section 7906 of the insurance law, as added by
chapter 614 of the laws of 1997, is amended to read as follows:
  (b) A provider shall not [in  its  service  contracts  or  literature]
make,  permit  or cause to be made any false or misleading statement, or
deliberately omit any material statement [that would  make  the  service
contracts  or literature misleading if omitted], in THE SERVICE CONTRACT
OR IN connection with the sale, offer to sell,  or  advertisement  of  a
service contract.
  S 13. Subsections (b) and (e) of section 7907 of the insurance law, as
added  by  chapter  614  of  the  laws  of  1997, are amended to read as
follows:
  (b) The registration application shall be accompanied by a fee of [two
hundred fifty] ONE THOUSAND dollars for each year or fraction of a  year
in which the registration shall be in effect.
  (e)  The  PROVIDER'S  registration  shall continue in force until SUCH
TIME AS THE REGISTRATION IS suspended or revoked by  the  superintendent
[on the grounds that the provider is not trustworthy or has violated any
provision  of  this  chapter  or  has  given cause for the revocation or
suspension of such registration or the provider  has  failed  to  comply
with  any  prerequisite for the issuance of such registration approved,]
or terminated at the request of the provider, subject, however,  to  the
biennial  renewal  of the registration[, by filing a renewal application
and payment, prior to March first of each odd  numbered  year  following
that  in  which its original registration application is filed, of a fee
of five hundred dollars] PURSUANT TO SUBSECTION (G) OF THIS SECTION.
  S 14. Subsection (f) of section 7907 of the insurance law, as added by
chapter 614 of the laws of 1997, is amended to read as follows:
  (f) Except for the registration requirement in this section,  [provid-
ers and administrators] A PROVIDER OR ADMINISTRATOR of service contracts
[are],  AS  TO  ITS  SERVICE CONTRACT BUSINESS, SHALL BE exempt from any
licensing requirements UNDER THIS CHAPTER.
  S 15. Subsection (g) of section 7907 of the insurance law, as added by
chapter 614 of the laws of 1997, is amended to read as follows:
  (g) A PROVIDER SHALL FILE A BIENNIAL RENEWAL APPLICATION AND PAY A FEE
OF ONE THOUSAND DOLLARS TO THE SUPERINTENDENT, PRIOR TO MARCH  FIRST  OF
EACH  ODD  NUMBERED YEAR FOLLOWING THAT YEAR IN WHICH THE PROVIDER FILED
ITS ORIGINAL REGISTRATION  APPLICATION  AS  LONG  AS  THE  PROVIDER  HAS
OUTSTANDING  SERVICE CONTRACT OBLIGATIONS. The biennial renewal applica-
tion shall contain such information as required  by  the  superintendent
including, but not limited to information to demonstrate that the appli-
cant  continues  to  satisfy  all requirements of section seven thousand
nine hundred three of this article.

S. 7465                             8

  S 16. Paragraph 2 of subsection (a) of section 7908 of  the  insurance
law,  as added by chapter 614 of the laws of 1997, is amended to read as
follows:
  (2)  A  provider's  or its administrator's accounts, books and records
shall include:
  (A) copies of each type of service contract issued;
  (B) the name and address of each service contract holder to the extent
that the name and address have been furnished by  the  service  contract
holder to the provider;
  (C)  a  list  of  the  provider  locations where service contracts are
marketed, sold, offered for sale, issued, made or proposed to be made or
administered; [and]
  (D) [written] DOCUMENTATION FOR ALL claims filed, which shall  contain
at  least the dates and description of all claims related to the service
contracts; AND
  (E) SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE.
  S 17. Section 7910 of the insurance law, as added by  chapter  614  of
the laws of 1997, is amended to read as follows:
  S  7910.  Enforcement  provisions.  (a) The superintendent may conduct
investigations or examinations of providers, administrators, insurers or
other persons to enforce the provisions  of  this  article  and  protect
service  contract  holders  [in  this state]. Upon request of the super-
intendent, the provider shall  make  all  accounts,  books  and  records
concerning  service  contracts sold in this state by the provider avail-
able to the superintendent [which] THAT  are  necessary  to  enable  the
superintendent  to  [reasonably] determine compliance [or noncompliance]
with this article.
  (b) The superintendent may take action [which] THAT  is  necessary  or
appropriate  to  enforce  the  provisions of this article and the super-
intendent's regulations and orders,  and  to  protect  service  contract
holders [in this state].
  [(1) If the provider has violated this article or the superintendent's
regulations  or  orders,  the]  (C)  THE  superintendent  may REVOKE, OR
SUSPEND A PROVIDER'S REGISTRATION,  OR  MAY  order  a  service  contract
provider  to cease and desist from committing violations of this article
or the superintendent's regulations or orders, OR  may  issue  an  order
[suspending a provider's registration under this article or] prohibiting
a  service contract provider from marketing, selling, offering for sale,
issuing, making or proposing to make service contracts, or may issue  an
order  imposing a civil penalty, or any combination of [these] THE FORE-
GOING, IF THE PROVIDER, OR THE PROVIDER'S EXECUTIVE OFFICER OR  OFFICERS
DIRECTLY RESPONSIBLE FOR THE PROVIDER'S SERVICE CONTRACT BUSINESS, HAS:
  (1)  VIOLATED ANY PROVISION OF THE INSURANCE LAW TO WHICH THE PROVIDER
IS SUBJECT, OR ANY REGULATION, OR SUBPOENA OR ORDER OF  THE  SUPERINTEN-
DENT  OR  OF  ANOTHER STATE'S INSURANCE COMMISSIONER OR SERVICE CONTRACT
REGULATOR, OR ANY OTHER LAW IN THE COURSE OF THE  REGISTRANT'S  DEALINGS
IN SUCH CAPACITY;
  (2)  PROVIDED  MATERIALLY INCORRECT, MATERIALLY MISLEADING, MATERIALLY
INCOMPLETE OR MATERIALLY UNTRUE INFORMATION IN ITS REGISTRATION APPLICA-
TION OR BIENNIAL RENEWAL APPLICATION;
  (3) OBTAINED OR ATTEMPTED TO OBTAIN A REGISTRATION  THROUGH  MISREPRE-
SENTATION OR FRAUD;
  (4) (A) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
  (B) DEMONSTRATED INCOMPETENCE;
  (C) DEMONSTRATED UNTRUSTWORTHINESS; OR

S. 7465                             9

  (D)  DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF SERVICE
CONTRACT BUSINESS IN THIS STATE OR ELSEWHERE;
  (5)  BEEN  CONVICTED  OF A FELONY, OR HAS BEEN GUILTY OF FRAUDULENT OR
DISHONEST PRACTICES OR OTHER MISCONDUCT OR MALFEASANCE;
  (6) ENGAGED IN ANY UNFAIR TRADE OR CLAIMS PRACTICE IN  THE  COURSE  OF
THE PROVIDER'S SERVICE CONTRACT BUSINESS;
  (7)  HAD  A  SERVICE CONTRACT PROVIDER LICENSE OR REGISTRATION, OR THE
EQUIVALENT DENIED, SUSPENDED OR REVOKED IN ANY  OTHER  STATE,  PROVINCE,
DISTRICT OR TERRITORY;
  (8)  FAILED  TO HONOR ITS CONTRACTUAL OBLIGATIONS SET OUT IN A SERVICE
CONTRACT; OR
  (9) FAILED TO PAY STATE INCOME TAX OR COMPLY WITH  ANY  ADMINISTRATIVE
OR COURT ORDER DIRECTING PAYMENT OF STATE INCOME TAX.
  (D)  An order issued under [this paragraph may] SUBSECTION (C) OF THIS
SECTION SHALL be delivered to the provider OR TO  ITS  DESIGNATED  AGENT
FOR  SERVICE  OF  PROCESS  at [its principal office or to the provider's
designated agent for service of  process  indicated  in  the  provider's
registration  materials  pursuant  to paragraph two of subsection (a) of
section seven thousand nine hundred seven of this article]  THE  ADDRESS
CONTAINED IN THE PROVIDER'S MOST RECENT REGISTRATION APPLICATION.
  [(A)]  (E) (1) A person aggrieved by an order issued under [this para-
graph] SUBSECTION (C) OF THIS SECTION may request a hearing  before  the
superintendent.  The hearing request shall be filed with the superinten-
dent within twenty days of the date the superintendent's order is effec-
tive;
  [(B)] (2) If a hearing is requested, [an] THEN THE order issued  under
[this  paragraph] SUBSECTION (C) OF THIS SECTION shall be suspended from
the original effective date of the order until completion of the hearing
and delivery of the final decision thereon TO THE PROVIDER by the super-
intendent, except that where the [provider has demonstrated a consistent
pattern or practice of gross misconduct in connection with  the  market-
ing,  sale,  offering for sale, issuance, making or proposing to make of
service contracts] ORDER CONTAINS A FINDING BY THE  SUPERINTENDENT  THAT
THE  PUBLIC  HEALTH,  SAFETY  OR WELFARE IMPERATIVELY REQUIRES EMERGENCY
ACTION, the effective date of the order shall not be  suspended  pending
the hearing and decision by the superintendent; and
  [(C)] (3) At the hearing, the burden shall be on the superintendent to
show  why  the order issued pursuant to this paragraph is justified. The
provisions of section three hundred four of this chapter shall apply  to
a hearing requested under this [paragraph] SUBSECTION.
  [(2)]  (F)  The  superintendent  may  bring  an action in any court of
competent jurisdiction for an injunction or other appropriate relief  to
enjoin  threatened  or  existing  violations  of  this article or of the
superintendent's orders or regulations. [An] THE SUPERINTENDENT,  IN  AN
action filed under this [paragraph] SUBSECTION may also seek restitution
on  behalf of persons aggrieved by a violation of this article or orders
or regulations of the superintendent.
  [(3)] (G)(1) A person in violation of this article may be subject to a
monetary penalty of not more than five hundred  dollars  per  violation.
[If the violation is not willful, such person may in lieu of paying such
monetary  penalty,  provide  restitution to the persons aggrieved by the
violation or otherwise remedy the  violation  within  sixty  days  after
becoming aware of the violation.]
  (2)  THE  SUPERINTENDENT MAY ALSO REQUIRE THE PROVIDER TO PAY RESTITU-
TION TO THE PERSONS AGGRIEVED BY THE VIOLATION OR TAKE SUCH OTHER ACTION
TO REMEDY OR AMELIORATE THE VIOLATION.

S. 7465                            10

  [(c)] (H) The authority of the superintendent under this section is in
addition to any other authority of the superintendent.
  S  18.  Section  7912 of the insurance law, as added by chapter 614 of
the laws of 1997, is amended to read as follows:
  S 7912. [Transition. Providers who have submitted an  application  for
approval of registration pursuant to section seven thousand nine hundred
seven  of  this  article  who  have  been previously engaged in New York
state, for not less than two years immediately prior  to  the  effective
date of this section in the business of marketing, selling, offering for
sale,  issuing,  making,  proposing  or administering a service contract
which otherwise was in compliance with all applicable laws of the  state
of New York immediately prior to the effective date of this section, may
engage  in such business in the state of New York until such time as the
superintendent has  issued  a  determination  on  such  application  for
approval  of  registration provided that such application is received by
the superintendent within sixty days  of  the  effective  date  of  this
section.]  PROVIDER  RESPONSIBILITIES.   A PROVIDER SHALL BE RESPONSIBLE
FOR ALL ASPECTS OF THE SERVICE CONTRACT BUSINESS  THAT  IT  CONDUCTS  IN
THIS  STATE, IRRESPECTIVE OF WHETHER THE PROVIDER DESIGNATES AN ADMINIS-
TRATOR OR ALLOWS ANOTHER PERSON TO MARKET OR SELL ITS SERVICE CONTRACTS.
  S 19. Section 7913 of the insurance law is renumbered section 7914 and
a new section 7913 is added to read as follows:
  S 7913. CEASING TO MAINTAIN REGISTRATION. (A)(1) A REGISTERED PROVIDER
THAT: INTENDS TO WITHDRAW FROM  THE  SERVICE  CONTRACT  MARKET  IN  THIS
STATE;  FAILS  TO MAINTAIN ITS PROVIDER REGISTRATION; OR WHOSE REGISTRA-
TION THE SUPERINTENDENT HAS REVOKED OR SUSPENDED, SHALL  SUBMIT  TO  THE
SUPERINTENDENT  FOR  APPROVAL A PLAN TO EFFECTUATE A WITHDRAWAL FROM THE
SERVICE CONTRACT MARKET IN THIS STATE.
  (2) THE PROVIDER SHALL SUBMIT THE PROPOSED PLAN:
  (A) AT LEAST FORTY-FIVE DAYS PRIOR TO THE  PROVIDER'S  INTENDED  WITH-
DRAWAL FROM THE SERVICE CONTRACT MARKET; OR
  (B)  NOT LATER THAN THIRTY DAYS AFTER THE: (I) PROVIDER'S REGISTRATION
EXPIRES, OR (II) AFTER THE EFFECTIVE DATE OF  AN  ORDER  ISSUED  BY  THE
SUPERINTENDENT THAT REVOKES OR SUSPENDS THE PROVIDER'S REGISTRATION.
  (3)  THE  PLAN  SHALL SET FORTH PROCEDURES BY WHICH THE PROVIDER SHALL
MEET ITS CONTRACTUAL OBLIGATIONS UNDER ITS  SERVICE  CONTRACTS  AND  ANY
APPLICABLE  STATUTORY OBLIGATIONS OF THE PROVIDER; AND SUCH OTHER INFOR-
MATION AS THE SUPERINTENDENT MAY REQUIRE.
  (4) TO PROTECT THE INTERESTS OF THE PROVIDER'S SERVICE CONTRACT  HOLD-
ERS,  THE  SUPERINTENDENT  MAY REQUIRE THAT A PROVIDER, WHICH HAS DEMON-
STRATED ITS FINANCIAL RESPONSIBILITY BY ONE OF THE METHODS SPECIFIED  IN
PARAGRAPH  TWO OR THREE OF SUBSECTION (C) OF SECTION SEVEN THOUSAND NINE
HUNDRED THREE OF THIS ARTICLE, DEPOSIT IN TRUST,  IN  THE  NAME  OF  THE
SUPERINTENDENT,  AN  AMOUNT  EQUAL TO THE MINIMUM FUNDED RESERVE ACCOUNT
CALCULATED BASED UPON THE PROVIDER'S OUTSTANDING SERVICE CONTRACTS.
  (5) A PROVIDER WHO FAILS TO SUBMIT A PROPOSED  PLAN  WITHIN  THE  TIME
FRAMES SPECIFIED IN THIS SECTION, OR WITHDRAWS FROM THE SERVICE CONTRACT
MARKET  IN  THIS STATE WITHOUT HAVING A PLAN APPROVED BY THE SUPERINTEN-
DENT, SHALL BE SUBJECT TO A MONETARY  PENALTY  OF  NOT  MORE  THAN  FIVE
HUNDRED DOLLARS PER DAY FOR FAILURE TO FILE A PLAN.
  (B)  THE SUPERINTENDENT MAY CONTINUE TO ENFORCE THE PROVISIONS OF THIS
ARTICLE AS TO A PROVIDER AS LONG AS THE PROVIDER HAS OUTSTANDING SERVICE
CONTRACT OBLIGATIONS, NOTWITHSTANDING: (1) A PROVIDER'S FAILURE TO MAIN-
TAIN ITS REGISTRATION; (2) AN ORDER BY THE  SUPERINTENDENT  REVOKING  OR
SUSPENDING  THE  PROVIDER'S  REGISTRATION;  OR  (3) THE SUPERINTENDENT'S
APPROVAL OF A PLAN TO EFFECTUATE A WITHDRAWAL PURSUANT TO THIS SECTION.

S. 7465                            11

  S 20. This act shall take effect on  the  one  hundred  eightieth  day
after it shall have become a law, provided however, that if section 1 of
chapter  499 of the laws of 2009 is not in effect on such date, then the
amendments made by section one-a of this act shall take  effect  on  the
same date and in the same manner as section 1 of chapter 499 of the laws
of  2009  takes effect, except that any rule or regulation necessary for
the timely implementation of this act  on  its  effective  date  may  be
promulgated on or before such date.

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Senate Bill S7465

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

2009-S7465 (ACTIVE) - Details

2009-S7465 (ACTIVE) - Summary

2009-S7465 (ACTIVE) - Sponsor Memo

2009-S7465 (ACTIVE) - Bill Text download pdf

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Senate Bill S7465

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Insurance Committee

2009-S7465 (ACTIVE) - Details

2009-S7465 (ACTIVE) - Summary

2009-S7465 (ACTIVE) - Sponsor Memo

2009-S7465 (ACTIVE) - Bill Text download pdf

Comments