A. 11059 2
2. "NON-MEDICAL DAMAGES" MEANS ANY COMPENSATORY DAMAGES, INCLUDING A
NON-ECONOMIC LOSS AS SUCH TERM IS DEFINED IN SECTION SIXTEEN HUNDRED OF
THE CIVIL PRACTICE LAW AND RULES, SOUGHT BY A PLAINTIFF AND RESULTING
FROM THE WILLFUL, WANTON OR GROSSLY NEGLIGENT CONDUCT OF THE DEFENDANT,
BUT SHALL NOT INCLUDE MEDICAL EXPENSE DAMAGES DESCRIBED IN PARAGRAPH (D)
OF SUBDIVISION THREE OF THIS SECTION.
3. "QUALIFIED CIVIL LIABILITY ACTION" MEANS A CIVIL ACTION OR PROCEED-
ING BROUGHT BY ANY PERSON AGAINST A COVERED LOW-INCOME HOUSING PROVIDER,
BUT SHALL NOT INCLUDE AN ACTION WHERE:
(A) THE DEFENDANT'S CONDUCT GIVING RISE TO SUCH ACTION WAS WILLFUL,
WANTON, OR GROSSLY NEGLIGENT;
(B) PUNITIVE DAMAGES ARE NOT SOUGHT BY THE PLAINTIFF, NOR AWARDED BY
THE COURT;
(C) NON-MEDICAL DAMAGES SOUGHT DO NOT EXCEED FIVE HUNDRED THOUSAND
DOLLARS; AND
(D) MEDICAL EXPENSE DAMAGES SOUGHT DO NOT EXCEED THE REIMBURSEMENT
RATES IN EFFECT FOR SUCH CARE UNDER THE SCHEDULE SET FORTH BY THE CHAIR
OF THE WORKERS' COMPENSATION BOARD PURSUANT TO SECTION THIRTEEN OF THE
WORKERS' COMPENSATION LAW.
§ 1301. LIMITATION OF LIABILITY FOR LOW-INCOME HOUSING PROVIDERS.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO QUALIFIED
CIVIL LIABILITY ACTION MAY BE BROUGHT IN ANY COURT IN THE STATE.
§ 2. The private housing finance law is amended by adding a new arti-
cle 34 to read as follows:
ARTICLE XXXIV
TEMPORARY INSURANCE STABILIZATION PROGRAM
SECTION 1310. LEGISLATIVE FINDINGS AND PURPOSE.
1311. DEFINITIONS.
1312. JOINT UNDERWRITING ASSOCIATION.
1313. PLAN OF OPERATION AND PROCEDURES.
1314. RATING PLANS.
1315. PARTICIPATION AND ASSESSMENTS.
1316. ANNUAL AGGREGATE LOSS LIMITATION.
1317. ANNUAL STATEMENTS.
1318. EXAMINATIONS.
1319. STUDY AND DETERMINATION.
§ 1310. LEGISLATIVE FINDINGS AND PURPOSE. IT IS HEREBY DECLARED AND
FOUND THAT THE AVAILABILITY OF AFFORDABLE HOUSING IN THIS STATE REMAINS
AN IMPORTANT PRIORITY IN THE PUBLIC INTEREST. IT IS FURTHER FOUND THAT
THERE EXISTS IN THE STATE A DIMINISHING AND SERIOUSLY INADEQUATE SUPPLY
OF SAFE AND SANITARY DWELLING ACCOMMODATIONS, PARTICULARLY FOR PERSONS
OF LOW-INCOME; THAT EXISTING PROVIDERS OF LOW-INCOME HOUSING MUST SHOUL-
DER UNLIMITED LIABILITY DESPITE BEING LIMITED IN THE RENTS THEY MUST
CHARGE; THAT SUCH PROVIDERS OF LOW-INCOME HOUSING MUST ALSO BEAR RISING
LIABILITY INSURANCE COSTS DUE TO NUMEROUS FACTORS BEYOND THEIR CONTROL;
THAT THE RISING COSTS OF SUCH INSURANCE MAY LEAD TO SUCH PROVIDERS EXIT-
ING THE AFFORDABLE HOUSING BUSINESS ALTOGETHER, FURTHER EXACERBATING THE
AFFORDABLE HOUSING CRISIS; AND THAT THE UNLIMITED LIABILITY BORNE BY
SUCH PROVIDERS RUNS DIRECTLY COUNTER TO THE GOALS OF THE NUMEROUS FEDER-
AL, STATE, AND MUNICIPAL GRANT PROGRAMS INTENDED TO ADDRESS THE AFFORDA-
BLE HOUSING CRISIS.
IN ORDER TO PROMOTE THE PURPOSE OF EXISTING HOUSING GRANT PROGRAMS AND
PROVIDE FOR ADEQUATE PROTECTION OF FEDERAL, STATE, AND LOCAL INVESTMENTS
IN AFFORDABLE HOUSING DEVELOPMENT, THE CREATION OF A TEMPORARY PROGRAM
TO ENSURE THE AVAILABILITY OF LIABILITY INSURANCE FOR SUCH PROVIDERS IS
NECESSARY.
A. 11059 3
THE NECESSITY IN THE PUBLIC INTEREST FOR THE PROVISIONS HEREINAFTER
ENACTED IS HEREBY DECLARED AS A MATTER OF LEGISLATIVE DETERMINATION.
§ 1311. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "ASSOCIATION" MEANS THE JOINT UNDERWRITING ASSOCIATION ESTABLISHED
UNDER THIS ARTICLE.
2. "COVERED LOW-INCOME HOUSING PROVIDER" MEANS AN ENTITY THAT:
(A) IS A NONPROFIT ORGANIZATION THAT:
(I) QUALIFIES AS AN APPROPRIATE NONPROFIT ORGANIZATION AS DEFINED IN
SECTION TWELVE HUNDRED EIGHTY-ONE OF THIS CHAPTER; AND
(II) HOLDS AN OWNERSHIP STAKE IN THE HOUSING PROPERTY IT MANAGES OF AT
LEAST FORTY-FIVE PERCENT;
(B) IS AN ENTITY THAT MEETS THE DEFINITION OF HOUSING COMPANY AS
DEFINED IN SUBDIVISION THREE OF SECTION THREE OF THE PUBLIC HOUSING LAW;
OR
(C) IS AN ENTITY THAT:
(I) PROVIDES LOW RENT HOUSING AS SUCH TERM IS DEFINED IN SUBDIVISION
TWENTY-THREE OF SECTION THREE OF THE PUBLIC HOUSING LAW; AND
(II) RECEIVES SOME COMBINATION OF FEDERAL, STATE, OR MUNICIPAL FUNDING
TO EFFECTUATE THE PROVISION OF SUCH LOW RENT HOUSING, SUCH THAT THE
HOUSING QUALIFIES AS A PROJECT AS DEFINED IN SUBDIVISION FOURTEEN OF
SECTION THREE OF THE PUBLIC HOUSING LAW.
3. "NET DIRECT PREMIUMS" MEANS GROSS DIRECT PREMIUMS WRITTEN IN THIS
STATE FOR COMMERCIAL GENERAL LIABILITY INSURANCE, AS COMPUTED BY THE
SUPERINTENDENT, LESS RETURN PREMIUMS OR THE UNUSED OR UNABSORBED
PORTIONS OF PREMIUM DEPOSITS.
4. "PLAN OF OPERATION" OR "PLAN" MEANS THE PLAN OF OPERATION COMPLYING
WITH SECTION THIRTEEN HUNDRED THIRTEEN OF THIS ARTICLE.
5. "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
§ 1312. JOINT UNDERWRITING ASSOCIATION. 1. A JOINT UNDERWRITING ASSO-
CIATION KNOWN AS THE NEW YORK HOUSING INSURANCE STABILIZATION ASSOCI-
ATION IS HEREBY ESTABLISHED, CONSISTING OF ALL INSURERS, INCLUDING
CAPTIVE INSURERS, AUTHORIZED TO WRITE AND ENGAGED IN WRITING WITHIN THIS
STATE, ON A DIRECT BASIS, COMMERCIAL GENERAL LIABILITY INSURANCE. EVERY
SUCH INSURER SHALL BE AND REMAIN A MEMBER OF THE ASSOCIATION AS A CONDI-
TION OF ITS AUTHORITY TO CONTINUE TO TRANSACT COMMERCIAL GENERAL LIABIL-
ITY INSURANCE IN THE STATE.
2. THE ASSOCIATION SHALL BE GOVERNED BY A BOARD OF THIRTEEN DIRECTORS,
TEN OF WHOM SHALL BE ELECTED ANNUALLY BY CUMULATIVE VOTING BY THE
MEMBERS OF THE ASSOCIATION, WHOSE VOTES IN SUCH ELECTION SHALL BE
WEIGHTED IN ACCORDANCE WITH EACH MEMBER'S NET DIRECT PREMIUMS WRITTEN
DURING THE PRECEDING CALENDAR YEAR. THE REMAINING THREE DIRECTORS SHALL
BE APPOINTED ANNUALLY BY THE SUPERINTENDENT AND BE DULY LICENSED INSUR-
ANCE AGENTS OR BROKERS REPRESENTATIVE OF BROAD SEGMENTS OF THE PUBLIC
OBTAINING INSURANCE THROUGH THE ASSOCIATION.
3. THE ASSOCIATION SHALL, PURSUANT TO THE PROVISIONS OF THIS ARTICLE
AND THE PLAN OF OPERATION, MAKE COMMERCIAL GENERAL LIABILITY INSURANCE
AVAILABLE THROUGH THE ASSOCIATION, AND SHALL HAVE THE POWER ON BEHALF OF
ITS MEMBERS:
(A) TO CAUSE POLICIES OF INSURANCE TO BE ISSUED TO ELIGIBLE APPLI-
CANTS;
(B) TO ASSUME REINSURANCE FROM ITS MEMBERS, INCLUDING MEMBERS THAT ARE
CAPTIVE INSURERS; AND
(C) TO CEDE REINSURANCE.
A. 11059 4
§ 1313. PLAN OF OPERATION AND PROCEDURES. 1. THE ASSOCIATION SHALL
ADHERE TO A PLAN OF OPERATION, CONSISTENT WITH THE PROVISIONS OF THIS
ARTICLE, APPROVED BY THE SUPERINTENDENT AFTER CONSULTATION WITH AFFECTED
INDIVIDUALS AND ORGANIZATIONS. THE PLAN SHALL PROVIDE FOR ECONOMICAL,
FAIR AND NON-DISCRIMINATORY ADMINISTRATION AND PROMPT AND EFFICIENT
PROVISION OF COMMERCIAL GENERAL LIABILITY INSURANCE TO ELIGIBLE APPLI-
CANTS. SUCH PLAN SHALL CONTAIN OTHER MATTERS INCLUDING, BUT NOT LIMITED
TO, PROVISION FOR NECESSARY FACILITIES, MANAGEMENT OF THE ASSOCIATION,
ASSESSMENT OF MEMBERS TO DEFRAY LOSSES AND EXPENSES, COMMISSION ARRANGE-
MENTS, REASONABLE AND OBJECTIVE UNDERWRITING STANDARDS, ACCEPTANCE AND
CESSION OF REINSURANCE, AND PROCEDURES FOR DETERMINING AMOUNTS OF INSUR-
ANCE TO BE PROVIDED BY THE ASSOCIATION.
2. THE PLAN OF OPERATION SHALL:
(A) AUTHORIZE THE ASSOCIATION TO ISSUE COMMERCIAL GENERAL LIABILITY
INSURANCE TO COVERED LOW-INCOME HOUSING PROVIDERS;
(B) PROVIDE FOR THE PROVISION OF DIFFERENT PER-OCCURRENCE LIMITS AND
AGGREGATE LIMITS IN COVERAGE;
(C) PROVIDE FOR THE USE OF PREMIUM INSTALLMENT PLANS;
(D) PROHIBIT THE ASSOCIATION FROM ISSUING POLICES OTHER THAN COMMER-
CIAL GENERAL LIABILITY INSURANCE POLICIES; AND
(E) PROVIDE PROCEDURES BY WHICH THE ASSOCIATION MAY ASSUME REINSURANCE
FROM ITS MEMBERS AND CEDE REINSURANCE TO THE PRIVATE REINSURANCE MARKET.
3. THE DIRECTORS OF THE ASSOCIATION MAY, ON THEIR OWN INITIATIVE OR AT
THE REQUEST OF THE SUPERINTENDENT, AMEND THE PLAN SUBJECT TO APPROVAL BY
THE SUPERINTENDENT.
4. THE ASSOCIATION SHALL, SUBJECT TO THE PLAN OF OPERATION, OFFER
COMMERCIAL GENERAL LIABILITY INSURANCE TO COVERED LOW-INCOME HOUSING
PROVIDERS AT RATES DETERMINED IN PURSUANT TO SECTION THIRTEEN HUNDRED
FOURTEEN OF THIS ARTICLE FOR A PERIOD OF FIVE YEARS FOLLOWING THE EFFEC-
TIVE DATE OF THIS ARTICLE.
5. ANY COVERED LOW-INCOME HOUSING PROVIDER, WHO HAS MADE A DILIGENT
EFFORT IN THE NORMAL INSURANCE MARKET TO PROCURE COMMERCIAL GENERAL
LIABILITY INSURANCE, IS ENTITLED TO APPLY TO THE ASSOCIATION FOR SUCH
COVERAGE. SUCH APPLICATION MAY BE MADE ON BEHALF OF AN APPLICANT BY A
BROKER OR AGENT AUTHORIZED BY SUCH APPLICANT.
6. IF THE ASSOCIATION DETERMINES THAT (A) THE APPLICANT IS INSURABLE
IN ACCORDANCE WITH THE PLAN, AND (B) THERE IS NO UNPAID, UNCONTESTED
PREMIUM DUE FROM THE APPLICANT FOR PRIOR INSURANCE, AS SHOWN BY THE
INSURED HAVING FAILED TO MAKE WRITTEN OBJECTION TO CHARGES WITHIN THIRTY
DAYS AFTER BILLING, THE ASSOCIATION, UPON RECEIPT OF THE PREMIUM OR
PORTION PRESCRIBED IN THE PLAN, SHALL CAUSE A POLICY OF COMMERCIAL
GENERAL LIABILITY INSURANCE TO BE ISSUED FOR A TERM OF ONE YEAR.
7. ANY MEMBER, INCLUDING CAPTIVE INSURERS, MAY CEDE COMMERCIAL GENERAL
LIABILITY INSURANCE TO THE ASSOCIATION AS PROVIDED IN THE PLAN.
8. ANY APPLICANT TO THE ASSOCIATION AND ANY PERSON INSURED PURSUANT TO
THIS ARTICLE, OR THEIR REPRESENTATIVES, OR ANY AFFECTED INSURER, MAY
APPEAL TO THE SUPERINTENDENT WITHIN THIRTY DAYS AFTER ANY RULING, ACTION
OR DECISION BY OR ON BEHALF OF THE ASSOCIATION, WITH RESPECT TO THOSE
ITEMS THE PLAN OF OPERATION DEFINES AS APPEALABLE MATTERS.
§ 1314. RATING PLANS. 1. THE RATES, RATING PLANS, RATING RULES AND
STATISTICS APPLICABLE TO INSURANCE WRITTEN BY THE ASSOCIATION SHALL BE
SUBJECT TO THE RELEVANT PROVISIONS OF ARTICLE TWENTY-THREE OF THE INSUR-
ANCE LAW, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION.
2. ANNUALLY, ON A DATE SET BY THE SUPERINTENDENT, THE ASSOCIATION
SHALL ESTIMATE THE ACTUARIAL RATES SUFFICIENT TO PAY ALL VALID CLAIMS
AND MEET THE EXPENSES INCURRED BY THE ASSOCIATION IN WRITING AND SERVIC-
A. 11059 5
ING POLICIES, AND SHALL FILE SUCH RATES, ON A FORM PRESCRIBED BY THE
SUPERINTENDENT, WITH THE DEPARTMENT OF FINANCIAL SERVICES.
3. NOT LATER THAN SIXTY DAYS AFTER THE RATING PLAN DESCRIBED IN SUBDI-
VISION TWO OF THIS SECTION IS RECEIVED, THE SUPERINTENDENT, IN CONSULTA-
TION WITH THE COMMISSIONER, SHALL DETERMINE WHETHER SUCH RATES ARE
REASONABLE AND AFFORDABLE FOR COVERED LOW-INCOME HOUSING PROVIDERS IN
LIGHT OF THE NECESSITY OF AFFORDABLE HOUSING AND THE IMPORTANCE OF
PROVIDING ADEQUATE PROTECTION FOR GOVERNMENT HOUSING INVESTMENTS.
4. IF THE SUPERINTENDENT AND COMMISSIONER DETERMINE THAT THE ACTUARI-
AL-BASED RATES DESCRIBED IN SUBDIVISION TWO OF THIS SECTION ARE NOT
AFFORDABLE, THE SUPERINTENDENT SHALL DETERMINE AN APPROPRIATE SUBSIDY TO
APPLY TO SUCH RATES, AND THE ASSOCIATION SHALL CHARGE ITS POLICYHOLDERS
THE SUBSIDIZED RATES AS APPROVED BY THE SUPERINTENDENT.
§ 1315. PARTICIPATION AND ASSESSMENTS. 1. EVERY MEMBER OF THE ASSOCI-
ATION SHALL PARTICIPATE IN ITS WRITINGS, EXPENSES, PROFITS AND LOSSES IN
THE PROPORTION THAT THE NET DIRECT PREMIUMS OF THE MEMBER, BUT EXCLUDING
THAT PORTION OF PREMIUMS ATTRIBUTABLE TO THE OPERATION OF THE ASSOCI-
ATION, WRITTEN DURING THE PRECEDING CALENDAR YEAR BEAR TO THE AGGREGATE
NET DIRECT PREMIUMS WRITTEN IN THIS STATE BY ALL MEMBERS OF THE ASSOCI-
ATION. EACH MEMBER'S PARTICIPATION IN THE ASSOCIATION SHALL BE DETER-
MINED ANNUALLY ON THE BASIS OF SUCH NET DIRECT PREMIUMS WRITTEN DURING
THE PRECEDING CALENDAR YEAR AS DISCLOSED IN THE ANNUAL STATEMENTS AND
OTHER REPORTS FILED BY THE MEMBER WITH THE SUPERINTENDENT.
2. NO MEMBER SHALL BE OBLIGATED IN ANY YEAR TO REIMBURSE THE ASSOCI-
ATION ON ACCOUNT OF ITS PROPORTIONATE SHARE IN THE DEFICIT FROM OPER-
ATIONS OF THE ASSOCIATION IN THAT YEAR IN EXCESS OF ONE PERCENT OF ITS
SURPLUS TO POLICYHOLDERS. THE AGGREGATE AMOUNT NOT SO REIMBURSED SHALL
BE REALLOCATED AMONG THE REMAINING MEMBERS IN ACCORDANCE WITH THE METHOD
OF DETERMINING PARTICIPATION PRESCRIBED IN THIS SECTION, AFTER EXCLUDING
FROM THE COMPUTATION THE TOTAL NET DIRECT PREMIUMS OF ALL MEMBERS NOT
SHARING IN SUCH EXCESS DEFICIT. IN THE EVENT THAT THE DEFICIT FROM OPER-
ATIONS ALLOCATED TO ALL MEMBERS IN ANY CALENDAR YEAR SHALL EXCEED ONE
PERCENT OF THEIR RESPECTIVE SURPLUS TO POLICYHOLDERS, THE AMOUNT OF SUCH
DEFICIT SHALL BE ALLOCATED TO EACH MEMBER IN ACCORDANCE WITH THE METHOD
OF DETERMINING PARTICIPATION PRESCRIBED IN THIS SECTION.
3. ANNUALLY, ON A DATE SET BY THE SUPERINTENDENT, THE ASSOCIATION
SHALL ESTIMATE ITS DEFICIT FROM OPERATIONS, AND CALCULATE A FACTOR, NOT
TO EXCEED ONE PERCENT, BY RELATING SUCH DEFICIT TO NET DIRECT PREMIUMS
WRITTEN FOR THE LATEST CALENDAR YEAR, SUBJECT TO THE APPROVAL OF THE
SUPERINTENDENT. SUCH FACTOR MAY BE REFLECTED IN THE DETERMINATION OF
RATES FILED BY THE PRINCIPAL RATING ORGANIZATION IN THIS STATE AND BY
MEMBERS OF THE ASSOCIATION FOR COMMERCIAL GENERAL LIABILITY INSURANCE.
ANY PART OF SUCH DEFICIT WHICH EXCEEDS ONE PERCENT AS SO CALCULATED,
SHALL BE DEFRAYED BY AN INCREASE IN RATES, BASED UPON THE ASSOCIATION'S
RELATED LOSS AND EXPENSE EXPERIENCE TOGETHER WITH OTHER INFORMATION THE
SUPERINTENDENT REQUIRES, IN ACCORDANCE WITH FILINGS APPROVED BY THE
SUPERINTENDENT. EACH MEMBER'S SHARE OF THE ESTIMATED DEFICIT SHALL BE
COLLECTED BY THE ASSOCIATION IN ACCORDANCE WITH THE PLAN OF OPERATION.
4. SUBJECT TO APPROVAL BY THE SUPERINTENDENT, THE ASSOCIATION SHALL
DEVELOP AND IMPLEMENT AN INCENTIVE PLAN FOR MEMBERS WHICH VOLUNTARILY
WRITE COMMERCIAL GENERAL LIABILITY INSURANCE POLICIES FOR COVERED LOW-
INCOME HOUSING PROVIDERS. THE PURPOSE OF THESE INCENTIVES SHALL BE TO
ENCOURAGE THE WRITING OF VOLUNTARY INSURANCE POLICIES AND THEREBY REDUC-
ING THE EXPOSURE OF THE ASSOCIATION.
§ 1316. ANNUAL AGGREGATE LOSS LIMITATION. 1. NOTWITHSTANDING ANY OTHER
PROVISION OF FEDERAL OR STATE LAW, THE AGGREGATE LOSSES PAID BY THE
A. 11059 6
ASSOCIATION DURING A CALENDAR YEAR SHALL NOT EXCEED FIFTY MILLION
DOLLARS.
2. NEITHER THE ASSOCIATION, NOR ANY MEMBER OF THE ASSOCIATION THAT HAS
MET ITS ASSESSMENT OBLIGATIONS, SHALL BE LIABLE FOR THE PAYMENT OF ANY
PORTION OF THE AMOUNT OF LOSSES THAT EXCEEDS FIFTY MILLION DOLLARS.
3. ANY LOSSES IN EXCESS OF FIFTY MILLION DOLLARS FOR WHICH THE ASSOCI-
ATION WOULD OTHERWISE BE LIABLE BUT FOR THE LIMITATION IN THIS SECTION,
SHALL BE PAID BY THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY
RENEWAL, UNDER PROCEDURES TO BE PRESCRIBED BY THE COMMISSIONER.
§ 1317. ANNUAL STATEMENTS. 1. THE ASSOCIATION SHALL ANNUALLY FILE A
STATEMENT IN THE OFFICE OF THE SUPERINTENDENT ON OR BEFORE THE FIRST DAY
OF MARCH. SUCH STATEMENT SHALL BE IN A FORM APPROVED BY AND CONTAIN
INFORMATION REQUIRED BY THE SUPERINTENDENT WITH RESPECT TO ITS TRANS-
ACTIONS, CONDITION, OPERATIONS AND AFFAIRS DURING THE PRECEDING YEAR.
2. THE SUPERINTENDENT MAY AT ANY TIME REQUIRE THE ASSOCIATION TO
FURNISH ADDITIONAL INFORMATION WHICH SUCH SUPERINTENDENT CONSIDERS TO BE
MATERIAL IN EVALUATING THE SCOPE, OPERATION AND EXPERIENCE OF THE ASSO-
CIATION.
§ 1318. EXAMINATIONS. THE SUPERINTENDENT MAY, IN ACCORDANCE WITH ARTI-
CLE THREE OF THE INSURANCE LAW, MAKE AN EXAMINATION INTO THE AFFAIRS OF
THE ASSOCIATION WHENEVER THE SUPERINTENDENT DEEMS IT EXPEDIENT. THE
EXPENSES OF EVERY SUCH EXAMINATION SHALL BE BORNE AND PAID BY THE ASSO-
CIATION IN THE MANNER PRESCRIBED BY SUBSECTION (F) OF SECTION TWO
HUNDRED SIX OF THE FINANCIAL SERVICES LAW.
§ 1319. STUDY AND DETERMINATION. NO LATER THAN THREE YEARS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE, THE SUPERINTENDENT SHALL, IN CONSULTA-
TION WITH THE COMMISSIONER:
1. CONDUCT A STUDY ON THE AVAILABILITY AND AFFORDABILITY OF LIABILITY
INSURANCE FOR LOW-INCOME HOUSING PROVIDERS;
2. ASSESS THE POTENTIAL IMPACT ON AVAILABILITY AND AFFORDABILITY OF
SUCH INSURANCE IF THE ASSOCIATION ESTABLISHED UNDER THIS ARTICLE WERE TO
BE DISBANDED; AND
3. SUBMIT A REPORT AND RECOMMENDATION TO THE GOVERNOR REGARDING WHETH-
ER THE ASSOCIATION ESTABLISHED UNDER THIS ARTICLE SHOULD CONTINUE TO
OPERATE.
§ 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that the provisions of
section two of this act shall expire and be deemed repealed once the
joint underwriting association established pursuant to article 34 of the
private housing finance law as added by section two of this act has
completed servicing all policies issued and fulfilled all obligations
pursuant to such article; provided that the superintendent of financial
services shall notify the legislative bill drafting commission upon the
completion of servicing policies and fulfillment of obligations by the
joint underwriting association, in order that the commission may main-
tain an accurate and timely effective data base of the official text of
the laws of the state of New York in furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of the
public officers law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.