What's happening
This bill extends certain legal provisions and protections for medical malpractice insurers in New York through December 31, 2022.
Why it matters
Maintains stability in the medical malpractice insurance market. by preventing the state from seeking rehabilitation or liquidation of insurers in financial trouble until at least the end of 2022. This reduces the risk of sudden disruptions in coverage for healthcare providers.
Protects policyholders (doctors, hospitals, patients). from potential loss of coverage or uncertainty that could arise if a major malpractice insurer were forced into insolvency proceedings before 2023.
Buys time for insurers to address financial challenges. by extending special exemptions and protections, allowing them to continue operating under regulatory oversight without immediate threat of shutdown, which can help ensure ongoing access to malpractice insurance in New York.
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Who cares
Headline styles
Extend Malpractice Insurer Protections
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.435
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.572
- Substituted for A8345
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1655
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extend Malpractice Insurance Protections
Assembly Floor Calendar · Sponsor Charles Lavine
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6547
2019-2020 Regular Sessions
IN SENATE
June 15, 2019
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the insurance law, in relation to extending certain provisions related to medical malpractice insurers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1325 of the insurance law, as amended by section 1 of part X of chapter 57 of the laws of 2015, is amended to read as follows:
§ 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 [nineteen] twenty-two, those stock and non-stock insurance companies to which subparagraph (B) of paragraph two of subsection (b) of such section applies.
§ 2. Subsection (c) of section 2343 of the insurance law, as amended by section 2 of part X of chapter 57 of the laws of 2015, is amended to read as follows:
(c) Notwithstanding any other provision of this chapter, no application 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 [nineteen] twenty-two.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13376-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to extending certain provisions related to medical malpractice insurers
Purpose
The purpose of this bill is to amend the Insurance Law in relation to extending certain provisions related to medical malpractice insurers.
Summary of provisions
Section 1 of the bill would amend Insurance Law § 1325 to extend until December 31, 2022, the exemption from the risk-based capital ("RBC") requirements of Insurance Law § 1324 for those stock and non-stock insurers to which 1324 (b) (2) (B) applies.
Section 2 would amend Insurance Law S 2343(c) to extend until December 31, 2022, the prohibition on making an application for an order of reha- bilitation or liquidation of a domestic insurer on the grounds that the insurer is insolvent or has failed or refused to comply with an order of the Superintendent of Financial Services to make good an impairment of its capital or minimum surplus to policyholders, when the insurer's primary liability arises from the business of medical malpractice insur- ance.
Section 3 would provide an immediate effective date.
Justification
Medical malpractice insurers have been afforded certain exemptions from various rules pertaining to financial reporting and regulation. This bill extends the exemptions from RBC requirements and from an applica- tion for an order or rehabilitation or liquidation until December 31, 2022.
Prior legislative history
This is a new bill
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.