Assembly Bill A7821E

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

                                  7821

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 18, 2011
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
  Committee on Insurance

AN ACT to amend the insurance law, in relation to private air  ambulance
  service

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

  Section 1. Legislative intent. The legislature hereby finds the insur-
ance law inadequate in its current form as  section  1108  of  such  law
provides  no exemptions for air ambulance companies wishing to subscribe
memberships. Some areas of the state are severely lacking in air  trans-
port  and  rescue services. By creating a new subsection in section 1108
of the insurance law, we create an environment conducive  to  air  ambu-
lance  companies while creating protections for their membership and the
people within their catchment area.
  S 2. Section 1108 of the insurance law is  amended  by  adding  a  new
subsection (k) to read as follows:
  (K)   A   PRIVATE  AIR  AMBULANCE  SERVICE  THAT  SOLICITS  MEMBERSHIP
SUBSCRIPTIONS, ACCEPTS MEMBERSHIP APPLICATIONS, CHARGES MEMBERSHIP FEES,
AND PROVIDES AIR AMBULANCE SERVICES TO SUBSCRIPTION MEMBERS  AND  DESIG-
NATED  MEMBERS  OF  THEIR HOUSEHOLD IS NOT AN INSURER IF THE PRIVATE AIR
AMBULANCE SERVICE:
  (1) HAS A VALID OPERATING CERTIFICATE  ISSUED  BY  THE  DEPARTMENT  OF
HEALTH;
  (2)  POSTS  A  SURETY  BOND  WITH  ONE  OR MORE SURETY COMPANIES TO BE
APPROVED BY THE DEPARTMENT OF HEALTH, IN THE  AMOUNT  OF  FIVE  THOUSAND
DOLLARS FOR EVERY ONE THOUSAND SUBSCRIBERS OR PORTION THEREOF;
  (3)  PROVIDES  IN THE MEMBERSHIP MATERIALS A STATEMENT PROVIDING CLEAR
DISCLOSURE TO APPLICANTS AND MEMBERS THAT  THIS  IS  NOT  INSURANCE  AND
MEMBERSHIP  CANNOT  BE  CONSIDERED  SECONDARY  INSURANCE  COVERAGE  OR A
SUPPLEMENT TO ANY INSURANCE COVERAGE;
  (4) PRODUCT IS ONLY OFFERED BY PROVIDERS OF THE SERVICE; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10652-03-1
              

A. 7821                             2

  (5) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS SECTION TO  THE
SUPERINTENDENT  PURSUANT  TO  RULES  AND  REGULATIONS PROMULGATED BY THE
DEPARTMENT.
  S 3. This act shall take effect on the one hundred twentieth day after
it  shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date is authorized to be made on  or
before such effective date.

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

                                 7821--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 18, 2011
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
  Committee on Insurance -- committee discharged, bill amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT to amend the insurance law, in relation to private air ambulance
  service

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

  Section 1. Legislative intent. The legislature hereby finds the insur-
ance  law  inadequate  in  its  current form as section 1108 of such law
provides no exemptions for air ambulance companies wishing to  subscribe
memberships.  Some areas of the state are severely lacking in air trans-
port and rescue services. By creating a new subsection in  section  1108
of  the  insurance  law, we create an environment conducive to air ambu-
lance companies while creating protections for their membership and  the
people within their catchment area.
  S  2.  Section  1108  of  the insurance law is amended by adding a new
subsection (k) to read as follows:
  (K) (1) FOR PURPOSES OF THIS SUBSECTION:
  (I) "AIR AMBULANCE SERVICE" SHALL MEAN AN AMBULANCE SERVICE THAT  USES
AIRCRAFT TO TRANSPORT PERSONS IN NEED OF MEDICAL CARE IN ACCORDANCE WITH
SUBDIVISION TWO OF SECTION THREE THOUSAND ONE OF THE PUBLIC HEALTH LAW.
  (II)  "SUBSCRIPTION SERVICE" SHALL MEAN ACCEPTING LUMP SUM OR PERIODIC
PAYMENTS IN ADVANCE TO COVER ALL OR SOME PART OF THE COST OF  AIR  AMBU-
LANCE SERVICES PROVIDED TO A MEMBER SUBSCRIBER;
  (2)  A  PRIVATE  AIR  AMBULANCE SERVICE AS DEFINED IN PARAGRAPH ONE OF
THIS SUBSECTION THAT SOLICITS MEMBERSHIP SUBSCRIPTIONS, ACCEPTS  MEMBER-
SHIP  APPLICATIONS,  CHARGES MEMBERSHIP FEES, AND PROVIDES AIR AMBULANCE
SERVICES TO SUBSCRIPTION MEMBERS AND DESIGNATED MEMBERS OF THEIR  HOUSE-
HOLD  IS NOT AN INSURER, IS NOT IN THE BUSINESS OF INSURANCE, AND IS NOT
SELLING INSURANCE, IF THE PRIVATE AIR AMBULANCE SERVICE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10652-09-1

              

A. 7821--A                          2

  (I) POSTS A SURETY BOND IN AN AMOUNT  OF  FIVE  THOUSAND  DOLLARS  FOR
EVERY ONE THOUSAND SUBSCRIBERS OR A PORTION THEREOF, EXECUTED BY A SURE-
TY  COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE BY THE DEPART-
MENT, TO ENSURE THAT THE STATE OF NEW YORK SHALL HAVE ADEQUATE FUNDS  TO
COMPENSATE  MEMBERS IN THE INSTANCE THAT THE AIR AMBULANCE SERVICE SHALL
NO LONGER HAVE A VALID OPERATING CERTIFICATE TO PROVIDE SUCH SERVICE;
  (II) PROVIDES IN THE MEMBERSHIP MATERIALS A DESCRIPTION OF  THE  TERMS
UNDER  WHICH  THE  MEMBER  IS  PROVIDED AIR AMBULANCE SERVICE INCLUDING,
LENGTH OF TIME THE MEMBERSHIP COVERS, AIR AMBULANCE SERVICE  COSTS  THAT
ARE  COVERED  BY  MEMBERSHIP FEES, EXCLUSIONS FROM PROVISION OF SERVICE,
DISCOUNT AMOUNTS AND A STATEMENT PROVIDING CLEAR  DISCLOSURE  TO  APPLI-
CANTS  AND  MEMBERS  THAT THIS IS NOT INSURANCE AND MEMBERSHIP CANNOT BE
CONSIDERED SECONDARY INSURANCE COVERAGE OR A SUPPLEMENT TO ANY INSURANCE
COVERAGE;
  (III) OFFERS SUBSCRIPTION MEMBERSHIPS  SOLELY  BY  THE  AIR  AMBULANCE
PROVIDER  HOLDING A VALID OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT
OF HEALTH; AND
  (IV) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS SECTION TO THE
SUPERINTENDENT.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition,  amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation  of this act on its effective date is authorized to be made on or
before such effective date.

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

                                 7821--B

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 18, 2011
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
  Committee on Insurance -- committee discharged, bill amended,  ordered
  reprinted  as  amended  and  recommitted  to  said  committee -- again
  reported from said committee with  amendments,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT to amend the insurance law, in relation to private air ambulance
  service

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

  Section 1. Legislative intent. The legislature hereby finds the insur-
ance  law  inadequate  in  its  current form as section 1101 of such law
provides no exemptions for air ambulance companies wishing to  subscribe
memberships.  Some areas of the state are severely lacking in air trans-
port and rescue services. By creating a new paragraph in subsection  (b)
of  section 1101 of the insurance law, we intend to exclude these compa-
nies as insurance and create an environment conducive to  air  ambulance
companies while creating protections for their membership and the people
within their catchment area.
  S 2. Subsection (b) of section 1101 of the insurance law is amended by
adding a new paragraph 8 to read as follows:
  (8) (A) FOR PURPOSES OF THIS PARAGRAPH:
  (I)  "AIR AMBULANCE SERVICE" SHALL MEAN AN AMBULANCE SERVICE THAT USES
AIRCRAFT TO TRANSPORT PERSONS IN NEED OF MEDICAL CARE IN ACCORDANCE WITH
SUBDIVISION TWO OF SECTION THREE THOUSAND ONE OF THE PUBLIC HEALTH LAW.
  (II) "SUBSCRIPTION SERVICE" SHALL MEAN ACCEPTING LUMP SUM OR  PERIODIC
PAYMENTS  IN  ADVANCE TO COVER ALL OR SOME PART OF THE COST OF AIR AMBU-
LANCE SERVICES PROVIDED TO A MEMBER SUBSCRIBER;
  (B) A PRIVATE AIR AMBULANCE SERVICE AS DEFINED IN SUBPARAGRAPH (A)  OF
THIS  PARAGRAPH  THAT SOLICITS MEMBERSHIP SUBSCRIPTIONS, ACCEPTS MEMBER-
SHIP APPLICATIONS, CHARGES MEMBERSHIP FEES, AND PROVIDES  AIR  AMBULANCE
SERVICES  TO SUBSCRIPTION MEMBERS AND DESIGNATED MEMBERS OF THEIR HOUSE-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10652-12-1
              

A. 7821--B                          2

HOLD IS NOT AN INSURER, IS NOT IN THE BUSINESS OF INSURANCE, AND IS  NOT
SELLING INSURANCE, IF THE PRIVATE AIR AMBULANCE SERVICE:
  (I)  FURNISHES  A BOND, WITH SUFFICIENT SURETIES, IN AN AMOUNT OF FIVE
THOUSAND DOLLARS FOR EVERY ONE THOUSAND SUBSCRIBERS OR A PORTION  THERE-
OF, EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS
STATE  BY  THE DEPARTMENT OF STATE, TO ENSURE THAT THE STATE OF NEW YORK
SHALL HAVE ADEQUATE FUNDS TO COMPENSATE MEMBERS IN THE INSTANCE THAT THE
AIR AMBULANCE SERVICE SHALL NO LONGER HAVE A VALID OPERATING CERTIFICATE
TO PROVIDE SUCH SERVICE; SUCH BOND SHALL BE IN FAVOR OF  THE  PEOPLE  OF
THE STATE OF NEW YORK. A COPY OF THE SURETY BOND SHALL BE FILED WITH THE
OFFICE  OF  THE SECRETARY OF STATE SIMULTANEOUSLY WITH THE FILING OF THE
STATEMENT REQUIRED BY CLAUSE (IV) OF THIS SUBPARAGRAPH.  THE  MONIES  SO
HELD  IN  SAID  SURETY  BOND  SHALL AT ALL TIMES EQUAL AN AMOUNT OF FIVE
THOUSAND DOLLARS FOR EVERY ONE THOUSAND SUBSCRIBERS OR A PORTION  THERE-
OF, EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS
STATE  BY  THE DEPARTMENT OF STATE, TO ENSURE THAT THE STATE OF NEW YORK
SHALL HAVE ADEQUATE FUNDS TO COMPENSATE MEMBERS IN THE INSTANCE THAT THE
AIR AMBULANCE SERVICE SHALL NO LONGER HAVE A VALID OPERATING CERTIFICATE
TO PROVIDE SUCH SERVICE. THE MONIES MAY BE WITHDRAWN, FROM TIME TO TIME,
IN ORDER TO COMPENSATE MEMBERS IN THE INSTANCE THAT  THE  AIR  AMBULANCE
SERVICE  SHALL  NO  LONGER HAVE A VALID OPERATING CERTIFICATE TO PROVIDE
SUCH SERVICE;
  (II) PROVIDES IN THE MEMBERSHIP MATERIALS A DESCRIPTION OF  THE  TERMS
UNDER  WHICH  THE  MEMBER  IS  PROVIDED AIR AMBULANCE SERVICE INCLUDING,
LENGTH OF TIME THE MEMBERSHIP COVERS, AIR AMBULANCE SERVICE  COSTS  THAT
ARE  COVERED  BY  MEMBERSHIP FEES, EXCLUSIONS FROM PROVISION OF SERVICE,
DISCOUNT AMOUNTS AND A STATEMENT PROVIDING CLEAR  DISCLOSURE  TO  APPLI-
CANTS  AND  MEMBERS  THAT THIS IS NOT INSURANCE AND MEMBERSHIP CANNOT BE
CONSIDERED SECONDARY INSURANCE COVERAGE OR A SUPPLEMENT TO ANY INSURANCE
COVERAGE;
  (III) OFFERS SUBSCRIPTION MEMBERSHIPS  SOLELY  BY  THE  AIR  AMBULANCE
PROVIDER  HOLDING A VALID OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT
OF HEALTH; AND
  (IV) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS  PARAGRAPH  TO
THE SUPERINTENDENT.
  S 3. This act shall take effect on the one hundred twentieth day after
it  shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date is authorized to be made on  or
before such effective date.

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

                                 7821--C

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 18, 2011
                               ___________

Introduced by M. of A. MAGNARELLI -- Multi-Sponsored by -- M. of A. KOLB
  --  read  once and referred to the Committee on Insurance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee -- again reported from said  committee  with  amend-
  ments,  ordered reprinted as amended and recommitted to said committee
  -- recommitted to the Committee on Insurance in accordance with Assem-
  bly Rule 3, sec. 2 --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  insurance  law,  in  relation  to air ambulance
  subscription services

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

  Section  1.  Section  1108 of the insurance law is amended by adding a
new subsection (k) to read as follows:
  (K) AN AIR AMBULANCE SERVICE THAT  HOLDS  A  VALID  AMBULANCE  SERVICE
OPERATING  CERTIFICATE  ISSUED  BY  THE DEPARTMENT OF HEALTH PURSUANT TO
SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW AND  THAT  COMPLIES
WITH SECTION ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF THIS ARTICLE.
  S 2. The insurance law is amended by adding a new section 1124 to read
as follows:
  S  1124.  AIR  AMBULANCE  SERVICE SUBSCRIPTION CERTIFICATE. (A) AN AIR
AMBULANCE SERVICE THAT HOLDS A VALID AMBULANCE SERVICE OPERATING CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW AND A  VALID  AIR  AMBULANCE  SERVICE
SUBSCRIPTION  CERTIFICATE  ISSUED  BY  THE  SUPERINTENDENT  PURSUANT  TO
SUBSECTION (B) OF THIS SECTION MAY ENTER INTO A  SUBSCRIPTION  AGREEMENT
WITH  A  PERSON  OR OTHER ENTITY IN THIS STATE UNDER WHICH THE AIR AMBU-
LANCE SERVICE AGREES TO DISCOUNT OR WAIVE  ANY  PART  OF  ITS  FEES  FOR
SERVICE  IN THE EVENT THAT THE AIR AMBULANCE SERVICE TRANSPORTS A PERSON
BY AIRCRAFT TO, FROM OR BETWEEN GENERAL HOSPITALS OR OTHER  HEALTH  CARE
FACILITIES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10652-17-2
              

A. 7821--C                          2

  (B) THE SUPERINTENDENT MAY ISSUE AN AIR AMBULANCE SERVICE SUBSCRIPTION
CERTIFICATE  TO  ANY  ENTITY THAT IS TRUSTWORTHY TO ACT IN SUCH CAPACITY
AND THAT HAS COMPLIED WITH THE PREREQUISITES HEREIN PRESCRIBED. THE  AIR
AMBULANCE  SERVICE MUST HOLD A VALID AMBULANCE SERVICE OPERATING CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW THAT AUTHORIZES THE AMBULANCE SERVICE
TO  PROVIDE  SERVICES  BY  AIRCRAFT. THE AIR AMBULANCE SERVICE MUST ALSO
OBTAIN, AND MAINTAIN THROUGHOUT THE TERM OF ITS  AIR  AMBULANCE  SERVICE
SUBSCRIPTION  CERTIFICATE, A SURETY BOND ISSUED BY AN AUTHORIZED INSURER
AND PAYABLE TO AIR AMBULANCE  SERVICE  SUBSCRIBERS  TO  REFUND  UNEARNED
SUBSCRIPTION FEES PAID TO THE AIR AMBULANCE SERVICE.
  (C)  THE APPLICATION FOR AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIF-
ICATE SHALL BE IN SUCH FORM OR FORMS, AND SHALL CONTAIN SUCH INFORMATION
AS THE SUPERINTENDENT SHALL PRESCRIBE. THE AIR AMBULANCE  SERVICE  SHALL
WITH  THE  SUBMISSION  OF  THE APPLICATION ALSO SUBMIT PROOF THAT IT HAS
OBTAINED THE SURETY BOND REQUIRED IN SUBSECTION (B) OF THIS SECTION  AND
A  COPY  OF  ITS  AMBULANCE  SERVICE OPERATING CERTIFICATE ISSUED BY THE
DEPARTMENT OF HEALTH PURSUANT TO SECTION  THREE  THOUSAND  FIVE  OF  THE
PUBLIC HEALTH LAW.
  (D)  AN  AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE SHALL BE VALID
FOR A TERM OF TWO YEARS TO RUN CONCURRENTLY WITH, AND TERMINATE  ON  THE
SAME  DATE AS, THE TERM OF THE AIR AMBULANCE SERVICE'S OPERATING CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW. AT THE TIME OF APPLICATION FOR EVERY
SUCH CERTIFICATE, AND FOR EVERY RENEWAL THEREOF, AN APPLICANT SHALL  PAY
TO THE SUPERINTENDENT THE SUM OF ONE THOUSAND DOLLARS.
  (E)  IF  AN  APPLICANT  FILES AN APPLICATION FOR A RENEWAL CERTIFICATE
WITH THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH CERTIFICATE,  THEN
THE  CERTIFICATE  SOUGHT  TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT  OF  THE  RENEWAL
CERTIFICATE  APPLIED  FOR  OR  UNTIL  FIVE DAYS AFTER THE SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL CERTIFICATE AS PROVIDED IN THIS
SECTION.
  (F) THE SUPERINTENDENT MAY REFUSE TO RENEW, REVOKE, OR SUSPEND AN  AIR
AMBULANCE  SERVICE SUBSCRIPTION CERTIFICATE FOR A PERIOD THE SUPERINTEN-
DENT DETERMINES, IF AFTER NOTICE AND HEARING, THE SUPERINTENDENT  DETER-
MINES  THAT  AN APPLICANT OR CERTIFICATE HOLDER HAS: (1) NOT OBTAINED OR
MAINTAINED THE SURETY BOND REQUIRED BY SUBSECTION (B) OF THIS SECTION OR
(2)  DEMONSTRATED  UNTRUSTWORTHINESS,  INCLUDING  HAVING  VIOLATED  THIS
SECTION.
  (G)  THE  COMMISSIONER  OF  HEALTH SHALL IMMEDIATELY NOTIFY THE SUPER-
INTENDENT WHEN THE COMMISSIONER  HAS  REVOKED,  SUSPENDED,  LIMITED,  OR
ANNULLED  AN  AIR  AMBULANCE SERVICE OPERATING CERTIFICATE. AN AIR AMBU-
LANCE SERVICE SUBSCRIPTION CERTIFICATE ISSUED PURSUANT TO  THIS  SECTION
SHALL TERMINATE BY OPERATION OF LAW UPON THE EFFECTIVE DATE OF THE REVO-
CATION,  SUSPENSION, OR ANNULMENT OF THE AIR AMBULANCE SERVICE'S OPERAT-
ING CERTIFICATE BY THE COMMISSIONER.
  (H) AN AIR AMBULANCE SERVICE SHALL  FILE  ITS  SUBSCRIPTION  AGREEMENT
FORMS  WITH THE SUPERINTENDENT IN CONNECTION WITH ITS APPLICATION OR ANY
RENEWAL APPLICATION FOR AN AIR AMBULANCE  SERVICE  SUBSCRIPTION  CERTIF-
ICATE.  AN  AIR AMBULANCE SERVICE THAT AMENDS ITS SUBSCRIPTION AGREEMENT
FORMS SHALL FILE THE REVISED FORMS  WITH  THE  SUPERINTENDENT  PRIOR  TO
USING THE FORMS IN THIS STATE, PROVIDED THAT WHERE THE AMENDMENTS TO THE
FORMS  ARE  ONLY  TECHNICAL  OR  NON-SUBSTANTIATIVE,  THE  AIR AMBULANCE
SERVICE MAY FILE THE REVISED FORMS AT OR BEFORE THE TIME IT  RENEWS  ITS
AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.

A. 7821--C                          3

  (I)  THE  SUBSCRIPTION AGREEMENT FORMS SHALL: (1) EXPRESSLY STATE THAT
THE SUBSCRIPTION IS NOT A GUARANTEE FOR THE PROVISION OF MEDICAL  TREAT-
MENT OR TRANSPORT; (2) LIST THE CONDITIONS UNDER WHICH THE AIR AMBULANCE
SERVICE  MAY  NOT  PROVIDE MEDICAL TREATMENT OR TRANSPORT; AND (3) STATE
THAT  A SUBSCRIBER MAY FILE A COMPLAINT WITH THE DEPARTMENT, AND INCLUDE
THE DEPARTMENT'S WEBSITE AND MAILING ADDRESS.
  (J) A SUBSCRIBER'S INSURER, WITH RESPECT TO A HEALTH INSURANCE  POLICY
OR  CONTRACT  DELIVERED  OR ISSUED FOR DELIVERY IN THIS STATE, SHALL NOT
TAKE INTO  CONSIDERATION  ANY  DISCOUNT  OR  FEE  WAIVER  GIVEN  TO  THE
SUBSCRIBER  BY  THE  AIR  AMBULANCE SERVICE WHEN DETERMINING THE BENEFIT
PAYABLE UNDER THE HEALTH INSURANCE POLICY OR CONTRACT FOR AIR  AMBULANCE
SERVICES.
  (K) THE SUPERINTENDENT SHALL NOTIFY THE COMMISSIONER OF HEALTH WHENEV-
ER  THE  SUPERINTENDENT  ISSUES,  RENEWS,  REFUSES  TO RENEW, REVOKES OR
SUSPENDS AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.
  (L) THE SUPERINTENDENT MAY PROMULGATE  REGULATIONS  IMPLEMENTING  THIS
SECTION.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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

                                 7821--D

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 18, 2011
                               ___________

Introduced by M. of A. MAGNARELLI -- Multi-Sponsored by -- M. of A. KOLB
  --  read  once and referred to the Committee on Insurance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee -- again reported from said  committee  with  amend-
  ments,  ordered reprinted as amended and recommitted to said committee
  -- recommitted to the Committee on Insurance in accordance with Assem-
  bly Rule 3, sec. 2 --  committee  discharged,  bill  amended,  ordered
  reprinted  as  amended  and  recommitted  to  said  committee -- again
  reported from said committee with  amendments,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to  amend  the  insurance  law,  in  relation  to air ambulance
  subscription services

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

  Section  1.  Section  1108 of the insurance law is amended by adding a
new subsection (k) to read as follows:
  (K) AN AIR AMBULANCE SERVICE THAT  HOLDS  A  VALID  AMBULANCE  SERVICE
OPERATING  CERTIFICATE  ISSUED  BY  THE DEPARTMENT OF HEALTH PURSUANT TO
SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW AND  THAT  COMPLIES
WITH SECTION ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF THIS ARTICLE.
  S 2. The insurance law is amended by adding a new section 1124 to read
as follows:
  S  1124.  AIR  AMBULANCE  SERVICE SUBSCRIPTION CERTIFICATE. (A) AN AIR
AMBULANCE SERVICE THAT HOLDS A VALID AMBULANCE SERVICE OPERATING CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW AND A  VALID  AIR  AMBULANCE  SERVICE
SUBSCRIPTION  CERTIFICATE  ISSUED  BY  THE  SUPERINTENDENT  PURSUANT  TO
SUBSECTION (B) OF THIS SECTION MAY ENTER INTO A  SUBSCRIPTION  AGREEMENT
WITH  A  PERSON  OR OTHER ENTITY IN THIS STATE UNDER WHICH THE AIR AMBU-
LANCE SERVICE AGREES TO DISCOUNT OR WAIVE  ANY  PART  OF  ITS  FEES  FOR
SERVICE  IN THE EVENT THAT THE AIR AMBULANCE SERVICE TRANSPORTS A PERSON

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10652-21-2
              

A. 7821--D                          2

BY AIRCRAFT TO, FROM OR BETWEEN GENERAL HOSPITALS OR OTHER  HEALTH  CARE
FACILITIES.
  (B) THE SUPERINTENDENT MAY ISSUE AN AIR AMBULANCE SERVICE SUBSCRIPTION
CERTIFICATE  TO  ANY  ENTITY THAT IS TRUSTWORTHY TO ACT IN SUCH CAPACITY
AND THAT HAS COMPLIED WITH THE PREREQUISITES HEREIN PRESCRIBED. THE  AIR
AMBULANCE  SERVICE MUST HOLD A VALID AMBULANCE SERVICE OPERATING CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW THAT AUTHORIZES THE AMBULANCE SERVICE
TO PROVIDE SERVICES BY AIRCRAFT. THE AIR  AMBULANCE  SERVICE  MUST  ALSO
OBTAIN,  AND  MAINTAIN  THROUGHOUT THE TERM OF ITS AIR AMBULANCE SERVICE
SUBSCRIPTION CERTIFICATE, A SURETY BOND ISSUED BY AN AUTHORIZED  INSURER
AND  PAYABLE  TO  AIR  AMBULANCE  SERVICE SUBSCRIBERS TO REFUND UNEARNED
SUBSCRIPTION FEES PAID TO THE AIR AMBULANCE SERVICE.
  (C) THE APPLICATION FOR AN AIR AMBULANCE SERVICE SUBSCRIPTION  CERTIF-
ICATE SHALL BE IN SUCH FORM OR FORMS, AND SHALL CONTAIN SUCH INFORMATION
AS  THE  SUPERINTENDENT SHALL PRESCRIBE. THE AIR AMBULANCE SERVICE SHALL
WITH THE SUBMISSION OF THE APPLICATION ALSO SUBMIT  PROOF  THAT  IT  HAS
OBTAINED  THE SURETY BOND REQUIRED IN SUBSECTION (B) OF THIS SECTION AND
A COPY OF ITS AMBULANCE SERVICE  OPERATING  CERTIFICATE  ISSUED  BY  THE
DEPARTMENT  OF  HEALTH  PURSUANT  TO  SECTION THREE THOUSAND FIVE OF THE
PUBLIC HEALTH LAW.
  (D) AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE SHALL  BE  VALID
FOR  A  TERM OF TWO YEARS TO RUN CONCURRENTLY WITH, AND TERMINATE ON THE
SAME DATE AS, THE TERM OF THE AIR AMBULANCE SERVICE'S OPERATING  CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW. AT THE TIME OF APPLICATION FOR EVERY
SUCH  CERTIFICATE, AND FOR EVERY RENEWAL THEREOF, AN APPLICANT SHALL PAY
TO THE SUPERINTENDENT THE SUM OF ONE THOUSAND DOLLARS.
  (E) IF AN APPLICANT FILES AN APPLICATION  FOR  A  RENEWAL  CERTIFICATE
WITH  THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH CERTIFICATE, THEN
THE CERTIFICATE SOUGHT TO BE RENEWED SHALL CONTINUE IN  FULL  FORCE  AND
EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
CERTIFICATE APPLIED FOR OR UNTIL  FIVE  DAYS  AFTER  THE  SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL CERTIFICATE AS PROVIDED IN THIS
SECTION.
  (F)  THE SUPERINTENDENT MAY REFUSE TO RENEW, REVOKE, OR SUSPEND AN AIR
AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE FOR A PERIOD THE  SUPERINTEN-
DENT  DETERMINES, IF AFTER NOTICE AND HEARING, THE SUPERINTENDENT DETER-
MINES THAT AN APPLICANT OR CERTIFICATE HOLDER HAS: (1) NOT  OBTAINED  OR
MAINTAINED THE SURETY BOND REQUIRED BY SUBSECTION (B) OF THIS SECTION OR
(2)  DEMONSTRATED  UNTRUSTWORTHINESS,  INCLUDING  HAVING  VIOLATED  THIS
SECTION.
  (G) THE COMMISSIONER OF HEALTH SHALL  IMMEDIATELY  NOTIFY  THE  SUPER-
INTENDENT  WHEN  THE  COMMISSIONER  HAS  REVOKED, SUSPENDED, LIMITED, OR
ANNULLED AN AIR AMBULANCE SERVICE OPERATING CERTIFICATE.  AN  AIR  AMBU-
LANCE  SERVICE  SUBSCRIPTION CERTIFICATE ISSUED PURSUANT TO THIS SECTION
SHALL TERMINATE BY OPERATION OF LAW UPON THE EFFECTIVE DATE OF THE REVO-
CATION, SUSPENSION, OR ANNULMENT OF THE AIR AMBULANCE SERVICE'S  OPERAT-
ING CERTIFICATE BY THE COMMISSIONER.
  (H)  AN  AIR  AMBULANCE  SERVICE SHALL FILE ITS SUBSCRIPTION AGREEMENT
FORMS WITH THE SUPERINTENDENT IN CONNECTION WITH ITS APPLICATION OR  ANY
RENEWAL  APPLICATION  FOR  AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIF-
ICATE. AN AIR AMBULANCE SERVICE THAT AMENDS ITS  SUBSCRIPTION  AGREEMENT
FORMS  SHALL  FILE  THE  REVISED  FORMS WITH THE SUPERINTENDENT PRIOR TO
USING THE FORMS IN THIS STATE, PROVIDED THAT WHERE THE AMENDMENTS TO THE
FORMS ARE  ONLY  TECHNICAL  OR  NON-SUBSTANTIATIVE,  THE  AIR  AMBULANCE

A. 7821--D                          3

SERVICE  MAY  FILE THE REVISED FORMS AT OR BEFORE THE TIME IT RENEWS ITS
AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.
  (I)  THE  SUBSCRIPTION AGREEMENT FORMS SHALL: (1) EXPRESSLY STATE THAT
THE SUBSCRIPTION IS NOT A GUARANTEE FOR THE PROVISION OF MEDICAL  TREAT-
MENT OR TRANSPORT; (2) LIST THE CONDITIONS UNDER WHICH THE AIR AMBULANCE
SERVICE  MAY  NOT  PROVIDE MEDICAL TREATMENT OR TRANSPORT; AND (3) STATE
THAT A SUBSCRIBER MAY FILE A COMPLAINT WITH THE DEPARTMENT, AND  INCLUDE
THE DEPARTMENT'S WEBSITE AND MAILING ADDRESS.
  (J)  AN  AIR  AMBULANCE  SUBSCRIPTION  AGREEMENT  MAY: (1) CONDITION A
DISCOUNT OR WAIVER OF ANY PART  OF  THE  FEES  UPON  THE  AIR  AMBULANCE
SERVICE RECEIVING AN ASSIGNMENT OF INSURANCE PAYMENTS, OR OTHER RIGHT TO
REIMBURSEMENT  OR  RECOVERY, FOR THE AIR AMBULANCE SERVICES; (2) PROVIDE
FOR A DISCOUNT OR WAIVER OF ANY PART  OF  THE  FEES  FOR  AIR  AMBULANCE
SERVICE  PROVIDED BY AN ENTITY AFFILIATED WITH THE AIR AMBULANCE SERVICE
THAT IS DULY AUTHORIZED TO PROVIDE THE AMBULANCE SERVICES IN THE  JURIS-
DICTION  IN  WHICH  THE SERVICES ARE RENDERED; AND (3) COVER TWO OR MORE
PERSONS, SUCH AS FAMILY MEMBERS, EMPLOYEES,  OCCUPANTS  OF  A  SPECIFIED
PREMISES,  OR  ANOTHER  GROUP OF PERSONS WITH A COMMON RELATIONSHIP WITH
ONE ANOTHER. FOR PURPOSES OF THIS SECTION, AN ENTITY IS AFFILIATED  WITH
AN  AIR AMBULANCE SERVICE WHERE THE ENTITY AND THE AIR AMBULANCE SERVICE
HAVE ENTERED INTO AN  AGREEMENT  TO  PROVIDE  RECIPROCAL  AIR  AMBULANCE
SERVICES TO EACH OTHER'S SUBSCRIBERS.
  (K)  A SUBSCRIBER'S INSURER, WITH RESPECT TO A HEALTH INSURANCE POLICY
OR CONTRACT DELIVERED OR ISSUED FOR DELIVERY IN THIS  STATE,  SHALL  NOT
TAKE  INTO  CONSIDERATION  ANY  DISCOUNT  OR  FEE  WAIVER  GIVEN  TO THE
SUBSCRIBER BY THE AIR AMBULANCE SERVICE  WHEN  DETERMINING  THE  BENEFIT
PAYABLE  UNDER THE HEALTH INSURANCE POLICY OR CONTRACT FOR AIR AMBULANCE
SERVICES.
  (L) THE SUPERINTENDENT SHALL NOTIFY THE COMMISSIONER OF HEALTH WHENEV-
ER THE SUPERINTENDENT ISSUES,  RENEWS,  REFUSES  TO  RENEW,  REVOKES  OR
SUSPENDS AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.
  (M)  THE  SUPERINTENDENT  MAY PROMULGATE REGULATIONS IMPLEMENTING THIS
SECTION.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.