Assembly Actions -
Senate Actions - UPPERCASE
|Feb 03, 2016
referred to insurance
Senate Bill S6667
2015-2016 Legislative Session
Archive: Last Bill Status - In Senate Committee Insurance Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2015-S6667 (ACTIVE) - Details
- See Assembly Version of this Bill:
- Current Committee:
- Senate Insurance
- Law Section:
- Insurance Law
- Laws Affected:
- Amd §§7402, 7403, 7405, add Art 81 §§8101 - 8104, Ins L; amd §72, add §97-yyyy, St Fin L
- Versions Introduced in Other Legislative Sessions:
2015-S6667 (ACTIVE) - Sponsor Memo
BILL NUMBER: S6667 TITLE OF BILL : An act to amend the insurance law and the state finance law, in relation to creating the health insurance guaranty fund PURPOSE : This legislation would enact the New York health insurance consumer protection security fund to protect consumers and providers from the failure of a health insurer to perform its contractual obligations due to financial impairment or insolvency. SUMMARY OF SPECIFIC PROVISIONS : This bill establishes the New York health insurance consumer protection security fund. In the event of an insolvency or failure by a health insurance company, the fund would reimburse providers for uncompensated care delivered to its enrollees. The fund would be financed by a one-time, temporary assessment on remaining health insurers-not a permanent tax. Other provisions of note: *Prohibits insurers from passing on assessments to policyholders.
2015-S6667 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6667 I N S E N A T E February 3, 2016 ___________ Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law and the state finance law, in relation to creating the health insurance guaranty fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (e) of section 7402 of the insurance law is amended to read as follows: (e) Is found, after examination, to be in such condition that its further transaction of business will be hazardous to its policyholders, creditors, or the public. THIS SHALL INCLUDE A HEALTH INSURER, AS DEFINED IN ARTICLE EIGHTY-ONE OF THIS CHAPTER, THAT IS CONSISTENTLY UNABLE TO MEET THE REQUIREMENTS OF SECTION THREE THOUSAND TWO HUNDRED TWENTY-FOUR-A OF THIS CHAPTER. S 2. Section 7403 of the insurance law is amended by adding a new subsection (e) to read as follows: (E)(1) UPON A DETERMINATION BY THE SUPERINTENDENT AND THE REHABILITA- TOR THAT FUNDS FROM THE NEW YORK HEALTH INSURANCE CONSUMER PROTECTION SECURITY FUND ARE NECESSARY TO MEET THE REQUIREMENTS OF ARTICLE EIGHTY- ONE OF THIS CHAPTER, THE SUPERINTENDENT SHALL MAKE AVAILABLE SUCH FUNDS AS ARE NECESSARY, PURSUANT TO THE REQUIREMENTS OF SUCH ARTICLE. (2) THE SUPERINTENDENT SHALL ADVANCE SUCH FUNDS AS MAY BE NECESSARY PURSUANT TO SUBSECTION (D) OF SECTION EIGHT THOUSAND ONE HUNDRED FOUR OF THIS CHAPTER. THE REHABILITATOR AND THE SUPERINTENDENT SHALL ESTABLISH A PLAN, IF POSSIBLE, FOR REPAYMENT OF THE ADVANCE, AT A RATE OF INTEREST DETERMINED BY THE SUPERINTENDENT. (3) ADVANCES, PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION, SHALL, IN ALL RESPECTS EXCEPT TO RATE OF INTEREST, BE SUBJECT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED SEVEN OF THIS CHAPTER, PROVIDED THAT IN THE EVENT THAT AN INSURER WHICH HAS RECEIVED AN ADVANCE PURSUANT TO THIS SUBSECTION IS SUBSEQUENTLY THE SUBJECT OF AN ORDER OF LIQUIDATION, THE CLAIM OF THE FUND FOR THE ADVANCE AND ANY ACCRUED INTEREST SHALL HAVE PRIORITY ABOVE CLAIMS OF ALL NONSECURED CREDITORS, PROVIDED THE REQUIREMENTS OF ARTICLE EIGHTY-ONE OF THIS CHAPTER HAVE BEEN MET, AND EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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