NY State Senate Bill 2017-S7746A

Senate Bill S7746A

Signed By Governor

2017-2018 Legislative Session

Relates to extending authorization for certain exemptions from filing requirements

download bill text pdf

Archive: Last Bill Status - Signed by Governor

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 21, 2018	signed chap.438
Dec 12, 2018	delivered to governor
Jun 13, 2018	returned to senate passed assembly ordered to third reading rules cal.125 substituted for a10634
Jun 04, 2018	referred to insurance delivered to assembly passed senate
May 09, 2018	amended on third reading 7746a
Mar 28, 2018	advanced to third reading
Mar 27, 2018	2nd report cal.
Mar 26, 2018	1st report cal.731
Feb 15, 2018	referred to insurance

Votes

- Jun 4, 2018 - Floor Vote
  S7746A
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 4, 2018
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (1)
      
      Croci
  Mar 26, 2018 - Insurance Committee Vote
  S7746A
  
  17
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Mar 26, 2018
      
      aye (17)
      
      Akshar
      
      Benjamin
      
      Breslin
      
      Golden
      
      Jacobs
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Murphy
      
      O'Mara
      
      Parker
      
      Phillips
      
      Rivera
      
      Savino
      
      Serino
      
      Seward
      
      excused (2)
      
      Brooks
      
      Hamilton

Bill Amendments

Original

A (Active)

2017-S7746 - Details

See Assembly Version of this Bill:: A10634
Law Section:: Insurance Law
Laws Affected:: Amd §6302, Ins L

2017-S7746 - Summary

Extends authorization for certain exemptions from filing requirements.

2017-S7746 - Sponsor Memo

                                
 
BILL NUMBER: S7746

SPONSOR: SEWARD
 
TITLE OF BILL:

An act to amend the insurance law, in relation to extending authori-
zation for certain exemptions from filing requirements

 
PURPOSE:

This bill would extend the authority for a domestic medical malpractice
insurer to secure a license to use the Free Trade Zone (FTZ).

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 6302 (c)(3) of the insurance law to
extend the minimum surplus to policyholder ration required of medical
malpractice insurers, from December 31, 2018 to December 31, 2020.

 
EXISTING LAW:

The current law expires on December 31, 2018.

 
JUSTIFICATION:

In 2011, legislation was enacted which modernized and streamlined the
regulation of commercial insurance by expanding the types of insurance
which may be written without the Department's prior approval of rates
and forms when sold to large commercial policyholders. This law has
proven successful in ensuring that commercial policyholders have maximum
flexibility to create policies that are tailored to their needs, as they
must respond rapidly to competitive forces, the economy and the needs of
their customers.

This piece of legislation extends the authority for a domestic medical
malpractice insurer to secure a license to use the Free Trade Zone
(FTZ). In order for a domestic medical insurer to be eligible to write
policies in the FTZ, the insurer must maintain a monetary surplus to
policyholders of at least twice the minimum surplus to policyholders
required by law for medical malpractice insurers.

Domestic admitted medical malpractice insurance companies continue to
face challenges for business from largely unregulated and frequently
under-capitalized risk retention groups (RRGs). The ability of domestic
medical malpractice insurers to continue to use the FTZ to underwrite
medical malpractice risks is an important tool to keep pace in the
market with these RRGs, whose policyholders do not enjoy the protection
of the property/casualty guaranty fund if an RRG becomes insolvent.
Authorized domestic medical malpractice insurers have had the ability to
write policies in the FTZ for many years.  This bill merely allows the
continuation of this successful practice.

 
LEGISLATIVE HISTORY:

Chapter 24 of 2015 (S.5315-A, section 1)

 
FISCAL IMPLICATIONS:

None
 
EFFECTIVE DATE:
Immediately

2017-S7746 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7746
 
                             I N  S E N A T E
 
                             February 15, 2018
                                ___________
 
 Introduced  by  Sen.  SEWARD -- 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  extending  authori-
   zation for certain exemptions from filing requirements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 3 of subsection (c) of section 6302 of the insur-
 ance law, as amended by chapter 24 of the laws of 2015,  is  amended  to
 read as follows:
   (3)  until  December  thirty-first,  two thousand [eighteen] TWENTY, a
 domestic property/casualty insurance company that maintains at all times
 a surplus to policyholders of at least  twice  the  minimum  surplus  to
 policyholders  required to be maintained for the kinds of insurance that
 it is authorized to write in this state, or an insurer licensed pursuant
 to article sixty-one of this chapter as a reciprocal insurer that  main-
 tains  at  all  times a surplus to policyholders of at least the minimum
 surplus to policyholders required to be  maintained  for  the  kinds  of
 insurance  that  it  is authorized to write in this state, provided that
 the domestic property/casualty insurance company or reciprocal  insurer:
 (A)  has  total  direct  premiums  comprised  of at least ninety percent
 medical malpractice insurance; (B) assumes reinsurance  premiums  in  an
 amount  that is less than five percent of total direct premiums written;
 and (C) writes ninety percent of  its  total  direct  premiums  in  this
 state.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14305-01-8

2017-S7746A (ACTIVE) - Details

See Assembly Version of this Bill:: A10634
Law Section:: Insurance Law
Laws Affected:: Amd §6302, Ins L

2017-S7746A (ACTIVE) - Summary

Extends authorization for certain exemptions from filing requirements.

2017-S7746A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7746A

SPONSOR: SEWARD
 
TITLE OF BILL:  An act to amend the insurance law, in relation to
extending authorization for certain exemptions from filing requirements

 
PURPOSE:

This bill would extend the authority for a domestic medical malpractice
insurer to secure a license to use the Free Trade Zone (FTZ).

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 6302 (c)(3) of the insurance law to
extend the minimum surplus to policyholder ration required of medical
malpractice insurers, from December 31, 2018 to December 31, 2020.

Section 2 of the bill amends section 6303 (a)(3) of the insurance law to
extend the current provision which permits certain qualified insurers to
write insurance without the Department of Financial Services' prior
approval of rates and forms, from June 30, 2019 to June 30, 2023.

 
JUSTIFICATION:

In 2011, legislation was enacted which modernized and streamlined the
regulation of commercial insurance by expanding the types of insurance
which may be written without the Department's prior approval of rates
and forms when sold to large commercial policyholders. This law has
proven successful in ensuring that commercial policyholders have maximum
flexibility to create policies that are tailored to their needs, as they
must respond rapidly to competitive forces, the economy and the needs of
their customers.

Additionally, this piece of legislation extends the authority for a
domestic medical malpractice insurer to secure a license to use the Free
Trade Zone (FTZ). In order for a domestic med mal insurer to be eligible
to write policies in the FTZ, the insurer must maintain a monetary
surplus to policyholders of at least twice the minimum surplus to poli-
cyholders required by law for medical malpractice insurers.

Domestic admitted medical malpractice insurance companies continue to
face challenges for business from largely unregulated and frequently
under-capitalized risk retention groups (RRGs). The ability of domestic
medical malpractice insurers to continue to use the FTZ to underwrite
medical malpractice risks is an important tool to keep pace in the
market with these RRGs, whose policyholders do not enjoy the protection
of the property/casualty guaranty fund if an RRG becomes insolvent.
Authorized domestic medical malpractice insurers have had the ability to
write policies in the FTZ for many years.  This bill merely allows the
continuation of this successful practice.

 
LEGISLATIVE HISTORY:

Chapter 24 of 2015 (S.5315-A)

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2017-S7746A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7746--A
     Cal. No. 731
 
                             I N  S E N A T E
 
                             February 15, 2018
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the  Committee  on  Insurance  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, amended and ordered  reprinted,  retaining
   its place in the order of third reading

 AN  ACT  to  amend  the insurance law, in relation to extending authori-
   zation for certain exemptions from filing requirements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3 of subsection (c) of section 6302 of the insur-
 ance  law,  as  amended by chapter 24 of the laws of 2015, is amended to
 read as follows:
   (3) until December thirty-first, two  thousand  [eighteen]  TWENTY,  a
 domestic property/casualty insurance company that maintains at all times
 a  surplus  to  policyholders  of  at least twice the minimum surplus to
 policyholders required to be maintained for the kinds of insurance  that
 it is authorized to write in this state, or an insurer licensed pursuant
 to  article sixty-one of this chapter as a reciprocal insurer that main-
 tains at all times a surplus to policyholders of at  least  the  minimum
 surplus  to  policyholders  required  to  be maintained for the kinds of
 insurance that it is authorized to write in this  state,  provided  that
 the  domestic property/casualty insurance company or reciprocal insurer:
 (A) has total direct premiums  comprised  of  at  least  ninety  percent
 medical  malpractice  insurance;  (B) assumes reinsurance premiums in an
 amount that is less than five percent of total direct premiums  written;
 and  (C)  writes  ninety  percent  of  its total direct premiums in this
 state.
   § 2. The opening paragraph of paragraph 3 of subsection (a) of section
 6303 of the insurance law, as amended by chapter 24 of the laws of 2015,
 is amended to read as follows:
   until June thirtieth, two thousand [nineteen] TWENTY-THREE, the  poli-
 cy,  other  than  a medical malpractice insurance policy, is issued to a
 large commercial insured that employs or retains a special risk  manager
 to  assist  in  the  negotiation and purchase of a policy exempted under
 this article, provided, however, that:

   § 3. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14305-02-8

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