senate Bill S7514A

Signed By Governor
2011-2012 Legislative Session

Relates to an exemption to certain provisions of law relating to risk-based capital for property/casualty insurance companies; repealer

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Archive: Last Bill Status - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Oct 03, 2012 signed chap.489
Sep 21, 2012 delivered to governor
Jun 18, 2012 returned to senate
passed assembly
ordered to third reading rules cal.331
substituted for a10432
Jun 12, 2012 referred to insurance
delivered to assembly
passed senate
ordered to third reading cal.1159
committee discharged and committed to rules
Jun 01, 2012 print number 7514a
amend (t) and recommit to insurance
May 30, 2012 referred to insurance

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S7514 - Bill Details

See Assembly Version of this Bill:
A10432
Law Section:
Insurance Law
Laws Affected:
Rpld & add §1325, amd §2343, Ins L
Versions Introduced in 2011-2012 Legislative Session:
A10432

S7514 - Bill Texts

view summary

Exempts medical malpractice insurance companies from provisions of law relating to the risk based financial standards applying to all property casualty insurance companies until December 31, 2016; extends certain prohibitions on requests for orders of rehabilitation or liquidation for medical malpractice insurance carriers until December 31, 2016.

view sponsor memo
BILL NUMBER:S7514

TITLE OF BILL:
An act to amend the insurance law, in relation to an exemption to
certain provisions of law relating to risk-based capital for
property/casualty insurance companies; and to repeal certain
provisions of the insurance law relating thereto

PURPOSE OF BILL:
To extend protections against liquidation and the exemption from
risk-based capital rules.

SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill repeals section 1325 of the insurance law and
adds a new section 1325 to exempt medical malpractice insurance
companies from provisions of law relating to the risk based financial
standards applying to all property casualty insurance companies
pursuant to section 1324 of the insurance law until December 31, 2016.

Section two of the bill amends subsection (c) of section 2343 of the
insurance law to extend certain prohibitions on requests for orders of
rehabilitation or liquidation for medical malpractice insurance
carriers until December 31, 2016.

Section three of the bill provides for an immediate effective date.

JUSTIFICATION:
Medical malpractice insurance carriers are unique compared to other
insurance carriers in New York, in both their structure and
regulation. As such, they have been afforded certain exemptions from
various rules pertaining to financial reporting and regulation. These
exemptions have been provided in the past by the legislature either
because the rules underlying the exemption did not fit within the
unique regulatory structure of medical malpractice insurance or had
frustrated other higher priority obligations such as continued
delivery of health care in many parts of the state. This bill simply
extends the exemptions to certain provisions of law until 2016,
specifically the protections against liquidation and the exemption
from risked-based capital rules.

PRIOR LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  7514

                            I N  S E N A T E

                              May 30, 2012
                               ___________

Introduced  by  Sen. MARTINS -- 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  an  exemption  to
  certain   provisions   of  law  relating  to  risk-based  capital  for
  property/casualty  insurance  companies;   and   to   repeal   certain
  provisions of the insurance 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 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 SIXTEEN THOSE STOCK AND NON-STOCK  INSURANCE  COMPANIES  TO
WHICH  SUBPARAGRAPH  (B)  OF  PARAGRAPH  TWO  OF  SUBSECTION (B) OF SUCH
SECTION APPLIES.
  S 2. Subsection (c) of section 2343 of the insurance law  is  REPEALED
and a new subsection (c) is added 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 DECEMBER  THIRTY-FIRST,
TWO THOUSAND SIXTEEN.
  S 3. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15992-01-2

S7514A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A10432
Law Section:
Insurance Law
Laws Affected:
Rpld & add §1325, amd §2343, Ins L
Versions Introduced in 2011-2012 Legislative Session:
A10432

S7514A (ACTIVE) - Bill Texts

view summary

Exempts medical malpractice insurance companies from provisions of law relating to the risk based financial standards applying to all property casualty insurance companies until December 31, 2016; extends certain prohibitions on requests for orders of rehabilitation or liquidation for medical malpractice insurance carriers until December 31, 2016.

view sponsor memo
BILL NUMBER:S7514A

TITLE OF BILL:

An act
to amend the insurance law, in relation to an exemption to certain
provisions of law relating to risk-based capital for property/casualty
insurance companies; and to repeal section 1325 of the insurance law
relating thereto

SUMMARY OF PROVISIONS:

Section 1: repeals § 1325 of the Insurance law and adds a new § 1325 to
exempt medical malpractice insurance companies from provisions of law
relating to the risk based financial standards applied to all
property casualty insurance companies pursuant to §1324 of the
Insurance law until December 31, 2016.

Section 2: Amends subsection (c) of § 2343 of the insurance law to
extend certain prohibitions on request for orders of rehabilitation
or liquidation for medical malpractice insurance carriers until
December 31, 2016.

Section 3: Effective Date

JUSTIFICATION:

Medical malpractice insurance carriers are unique
compared to other insurance carriers in New York, in both their
structure and regulation. As such, they have afforded certain
exemptions from various rules pertaining to financial reporting and
regulation.
These exemptions have been provided in the past by the legislature
either because the rules underlying the exemptions did not fit within
the unique regulatory structure of medical malpractice insurance or
frustrated other higher priority, public policy obligations such as
the continued delivery of health care in many parts of the state. The
bill simply extends the exemptions to certain provisions of law until
2016, specifically the protections against liquidation and the
exemption from risk based capital rules

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

Immediately.

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

                                 7514--A

                            I N  S E N A T E

                              May 30, 2012
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed 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 an exemption to
  certain  provisions  of  law  relating  to  risk-based   capital   for
  property/casualty  insurance  companies; and to repeal section 1325 of
  the insurance 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 SIXTEEN, THOSE STOCK AND NON-STOCK
INSURANCE COMPANIES TO  WHICH  SUBPARAGRAPH  (B)  OF  PARAGRAPH  TWO  OF
SUBSECTION (B) OF SUCH SECTION APPLIES.
  S 2. Subsection (c) of section 2343 of the insurance law, as separate-
ly  amended by section 19 of part C and section 106-a of part H of chap-
ter 59 of the laws of 2011, 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 [fourteen] SIXTEEN.
  S 3. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15992-02-2

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