NY State Senate Bill 2011-S5808

Archive: Last Bill Status - In Senate Committee Insurance Committee

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
Jan 05, 2012	print number 5808a
Jan 05, 2012	amend and recommit to insurance
Jan 04, 2012	referred to insurance returned to senate died in assembly
Jun 20, 2011	referred to insurance delivered to assembly passed senate ordered to third reading cal.1415
Jun 17, 2011	referred to rules

Votes

- Jun 20, 2011 - Floor Vote
  S5808
  
  58
  
  Aye
  
  4
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 20, 2011
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Ball
      
      Bonacic
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Kennedy
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      O'Mara
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Young
      
      Zeldin
      
      nay (4)
      
      Avella
      
      Breslin
      
      Duane
      
      Squadron
  Jun 20, 2011 - Rules Committee Vote
  S5808
  
  11
  
  Aye
  
  6
  
  Nay
  
  7
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 20, 2011
      
      aye (11)
      
      Alesi
      
      Dilan
      
      Farley
      
      Hannon
      
      Johnson
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Nozzolio
      
      Skelos
      
      nay (6)
      
      Breslin
      
      Hassell-Thompson
      
      Krueger
      
      Montgomery
      
      Perkins
      
      Stewart-Cousins
      
      aye wr (7)
      
      Duane
      
      LaValle
      
      Parker
      
      Saland
      
      Sampson
      
      Seward
      
      Smith

Bill Amendments

Original

A (Active)

co-Sponsors

2011-S5808 - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §1326, Ins L

2011-S5808 - Summary

Relates to an exemption for certain stock and non-stock insurance companies.

2011-S5808 - Sponsor Memo

                                BILL NUMBER:S5808

TITLE OF BILL:
An act
to amend the insurance law, in relation to exemption for certain stock
and non-stock insurance companies; and providing for the repeal of
such provisions upon expiration thereof

SUMMARY OF PROVISIONS:
Section one of the bill creates a new section 1326 of the insurance
law to provide that medical malpractice insurance carriers
responsible for covering the projected deficit of the Medical
Malpractice Insurance Pool shall maintain reserves for such deficits
of not less than twenty percent of their respective proportionate
shares of such deficits, that obligations to pay on such deficits
shall be for and in years in which obligations are actually due and
owing, and that reserves held shall be increased by any percentage
increase in the projected deficit of the Pool.

Subsection (b) of new section 1326 of the insurance law provides for a
mechanism whereby the superintendent can direct the increases in
reserves for the Pool deficit when obligations actually become due
and owing.

Section two of the bill provides for an effective date of December 31,
2011, an expiration date of December 31, 2015 and that a report be

made by the Superintendent on the reserving needs for the deficit of
the Pool.

JUSTIFICATION:
Medical malpractice carriers are currently mandated by accounting
rules inconsistent with New York law to carry reserves for possible
deficits of the Pool at one hundred percent of the projected
shortfall. This not only creates unnecessary balance sheet hardships,
it increases pressure on medical malpractice insurance rates. The
deficits for which these reserves must be held have not materialized
in over a decade, and are projected to not develop for many more
years, if at all. They are based on long term actuarial estimates
only. This bill would allow for balance sheet relief, less pressure
on insurance rates and a safety mechanism whereby the superintendent
can call for the refunding of reserve accounts to assure that
reserves are adequate when they are actually needed to cover actual
deficits.

EFFECTIVE DATE:
December 31, 2011 with an expiration of its provisions on December
31, 2015; the superintendent is also directed to report on the deficit
and the appropriateness of reserves therefor by March 31, 2015.

FISCAL IMPACT TO THE STATE:
None.

2011-S5808 - Bill Text download pdf

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

                                  5808

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 17, 2011
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- 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 exemption for  certain
  stock  and non-stock insurance companies; and providing for the repeal
  of such provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new section 1326
to read as follows:
  S 1326. STATUTORY ASSOCIATION MEMBERSHIP; OBLIGATIONS. (A)  FOR  THOSE
STOCK AND NON-STOCK COMPANIES TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO
OF  SUBSECTION  (B) OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-FOUR OF
THIS ARTICLE APPLIES, NO LIABILITIES ARISING FROM THE OBLIGATIONS OF  AN
ASSOCIATION  AUTHORIZED PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF
SUBSECTION (C) OF SECTION FIVE THOUSAND FIVE HUNDRED TWO OF THIS CHAPTER
SHALL BE DUE AND OWING FROM SUCH COMPANIES UNLESS AND UNTIL  SUCH  OBLI-
GATIONS  CAN  BE  SATISFIED, AFTER CONSIDERATION OF ALL RESOURCES OF THE
ASSOCIATION, INCLUDING BUT NOT LIMITED TO CURRENT PREMIUM INCOME,  BY  A
CONTRIBUTION  FROM SUCH COMPANIES AND THE COMPANIES ARE NOTIFIED OF SAME
BY SUCH ASSOCIATION NOT LESS THAN THREE HUNDRED SIXTY-FIVE DAYS PRIOR TO
THE DATE UPON WHICH SUCH OBLIGATIONS SHALL BE DUE AND OWING,  AND  SHALL
ONLY  RELATE TO OBLIGATIONS OF THE ASSOCIATION THAT ARE ACTUALLY DUE AND
OWING BY THE ASSOCIATION IN THAT YEAR IN WHICH  CONTRIBUTION  IS  TO  BE
MADE  BY THE COMPANIES. SUCH OBLIGATIONS SHALL NOT BE AGGREGATED FOR ANY
OTHER YEAR EXCEPT THAT IN WHICH THE CONTRIBUTION IS  DUE  AND  OWING  OR
PREVIOUS YEARS FOR WHICH CONTRIBUTIONS HAVE NOT BEEN SATISFIED; FURTHER,
SUCH  LIABILITIES  AND  THE CONTRIBUTIONS THEREFOR SHALL NOT INCLUDE ANY
CONTINGENT LIABILITIES  OF  THE  ASSOCIATION  FOR  THE  YEAR  FOR  WHICH
CONTRIBUTIONS  ARE  REQUESTED;  PROVIDED,  HOWEVER, THAT COMPANIES SHALL
MAINTAIN AT ALL TIMES A RESERVE OF NOT LESS THAN TWENTY PERCENT OF THEIR
RESPECTIVE AND PROPORTIONATE LIABILITIES OF THE AGGREGATE DEFICIT OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11724-05-1

S. 5808                             2

ASSOCIATION, AS SUCH RESPECTIVE AND  PROPORTIONATE  LIABILITIES  OF  THE
AGGREGATE  DEFICIT  ARE  REPORTED BY THE ASSOCIATION CONSISTENT WITH THE
PROVISIONS OF THIS SECTION; FURTHER, COMPANIES SHALL EACH YEAR  INCREASE
ITS MINIMUM RESERVE, ASSUMING IT IS LESS THAN ONE HUNDRED PERCENT OF THE
RESPECTIVE  AND  PROPORTIONATE  LIABILITY OF A COMPANY FOR THE AGGREGATE
DEFICIT OF THE ASSOCIATION, BY THE PERCENTAGE INCREASE IN THE  AGGREGATE
DEFICIT OF THE ASSOCIATION FROM THE PREVIOUS YEAR.
  (B)  THE SUPERINTENDENT SHALL, FOR A YEAR IN WHICH THE AGGREGATE DEFI-
CIT OF THE ASSOCIATION IS REPORTED BY THE  ASSOCIATION  AS  REQUIRING  A
CONTRIBUTION, INSTRUCT CONTRIBUTING COMPANIES TO INCREASE RESPECTIVE AND
PROPORTIONATE RESERVES PROVIDED FOR IN SUBSECTION (A) OF THIS SECTION BY
AN  AMOUNT  NOT  LESS  THAN  TWENTY-FIVE  PERCENT  PER YEAR AND FOR EACH
CONSECUTIVE YEAR THEREAFTER FOR EACH YEAR THAT A CONTRIBUTION IS  NECES-
SARY  UNTIL  SUCH TIME AS A COMPANY HAS REACHED A RESERVING LEVEL OF ONE
HUNDRED PERCENT OF ITS RESPECTIVE AND PROPORTIONATE LIABILITIES FOR  THE
AGGREGATE  DEFICIT OF THE ASSOCIATION; PROVIDED, HOWEVER, THAT COMPANIES
MAY REDUCE ITS RESERVES THEREAFTER BY SUCH AMOUNT IN AND FOR THE  SECOND
CONSECUTIVE YEAR AND EACH YEAR THEREAFTER IN WHICH A CONTRIBUTION IS NOT
REQUIRED  TO  THE MINIMUM RESERVE PROVIDED FOR IN SUBSECTION (A) OF THIS
SECTION.
  S 2. This act shall take effect December 31, 2011 and shall be consid-
ered in effect for the purposes  of  companies'  2011  annual  financial
statements;  provided, however, that this section shall expire on Decem-
ber 31, 2015; provided further, that the superintendent  shall  evaluate
the  proper  reserving level necessary for maintaining adequate security
for the aggregate deficit of the association in light of  loss  develop-
ment  trends,  claims  settlement  trends,  actuarial projections of the
financial condition of the association and other factors and  report  to
the  legislature  on the findings of such evaluation no later than March
31, 2015.

co-Sponsors

2011-S5808A (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §1326, Ins L

2011-S5808A (ACTIVE) - Summary

Relates to an exemption for certain stock and non-stock insurance companies.

2011-S5808A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5808A

TITLE OF BILL:

An act
to amend the insurance law, in relation to exemption for certain stock
and non-stock insurance companies; and providing for the repeal of
such provisions upon expiration thereof

SUMMARY OF PROVISIONS:

Section one of the bill creates a new section 1326 of the insurance
law to provide that medical malpractice insurance carriers
responsible for covering the projected deficit of the Medical
Malpractice Insurance Pool shall maintain reserves for such deficits
of not less than twenty percent of their respective proportionate
shares of such deficits, that obligations to pay on such deficits
shall be for and in years in which obligations are actually due and
owing, and that reserves held shall be increased by any percentage
increase in the projected deficit of the Pool.

Subsection (b) of new section 1326 of the insurance law provides for a
mechanism whereby the superintendent can direct the increases in
reserves for the Pool deficit when obligations actually become due
and owing.

Section two of the bill provides for an effective date.

JUSTIFICATION:

Medical malpractice carriers are currently mandated by accounting
rules inconsistent with New York law to carry reserves for possible
deficits of the Pool at one hundred percent of the projected
shortfall. This not only creates unnecessary balance sheet hardships,
it increases pressure on medical malpractice insurance rates. The
deficits for which these reserves must be held have not materialized
in over a decade, and are projected to not develop for many more
years, if at all. They are based on long term actuarial estimates
only. This bill would allow for balance sheet relief, less pressure
on insurance rates and a safety mechanism whereby the superintendent
can call for the refunding of reserve accounts to assure that
reserves are adequate when they are actually needed to cover actual
deficits.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None to State.

EFFECTIVE DATE:

This bill shall take effect December 31, 2012 and shall be considered
in effect for purposes of companies' 2012 annual financial


statements; provided however, that this section shall expire on
December 31, 2016; provided further, that the superintendent shall
evaluate the proper reserving level necessary for maintaining
adequate security for the aggregate deficit of the association in
light of loss development trends, actuarial projections of the
financial condition of the association and other factors and report
to the legislature on the findings of such evaluation no later than
March 31, 2016.

2011-S5808A (ACTIVE) - Bill Text download pdf

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

                                 5808--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 17, 2011
                               ___________

Introduced  by  Sens.  DeFRANCISCO,  MARTINS  --  read twice and ordered
  printed, and when printed to be committed to the Committee on Rules --
  recommitted to the Committee on Insurance in  accordance  with  Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to exemption for  certain
  stock  and non-stock insurance companies; and providing for the repeal
  of such provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new section 1326
to read as follows:
  S 1326. STATUTORY ASSOCIATION MEMBERSHIP; OBLIGATIONS. (A)  FOR  THOSE
STOCK AND NON-STOCK COMPANIES TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO
OF  SUBSECTION  (B) OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-FOUR OF
THIS ARTICLE APPLIES, NO LIABILITIES ARISING FROM THE OBLIGATIONS OF  AN
ASSOCIATION  AUTHORIZED PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF
SUBSECTION (C) OF SECTION FIVE THOUSAND FIVE HUNDRED TWO OF THIS CHAPTER
SHALL BE DUE AND OWING FROM SUCH COMPANIES UNLESS AND UNTIL  SUCH  OBLI-
GATIONS  CAN  BE  SATISFIED, AFTER CONSIDERATION OF ALL RESOURCES OF THE
ASSOCIATION, INCLUDING BUT NOT LIMITED TO CURRENT PREMIUM INCOME,  BY  A
CONTRIBUTION  FROM SUCH COMPANIES AND THE COMPANIES ARE NOTIFIED OF SAME
BY SUCH ASSOCIATION NOT LESS THAN THREE HUNDRED SIXTY-FIVE DAYS PRIOR TO
THE DATE UPON WHICH SUCH OBLIGATIONS SHALL BE DUE AND OWING,  AND  SHALL
ONLY  RELATE TO OBLIGATIONS OF THE ASSOCIATION THAT ARE ACTUALLY DUE AND
OWING BY THE ASSOCIATION IN THAT YEAR IN WHICH  CONTRIBUTION  IS  TO  BE
MADE  BY THE COMPANIES. SUCH OBLIGATIONS SHALL NOT BE AGGREGATED FOR ANY
OTHER YEAR EXCEPT THAT IN WHICH THE CONTRIBUTION IS  DUE  AND  OWING  OR
PREVIOUS YEARS FOR WHICH CONTRIBUTIONS HAVE NOT BEEN SATISFIED; FURTHER,
SUCH  LIABILITIES  AND  THE CONTRIBUTIONS THEREFOR SHALL NOT INCLUDE ANY
CONTINGENT LIABILITIES  OF  THE  ASSOCIATION  FOR  THE  YEAR  FOR  WHICH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11724-06-1

S. 5808--A                          2

CONTRIBUTIONS  ARE  REQUESTED;  PROVIDED,  HOWEVER, THAT COMPANIES SHALL
MAINTAIN AT ALL TIMES A RESERVE OF NOT LESS THAN TWENTY PERCENT OF THEIR
RESPECTIVE AND PROPORTIONATE LIABILITIES OF THE AGGREGATE DEFICIT OF THE
ASSOCIATION,  AS  SUCH  RESPECTIVE  AND PROPORTIONATE LIABILITIES OF THE
AGGREGATE DEFICIT ARE REPORTED BY THE ASSOCIATION  CONSISTENT  WITH  THE
PROVISIONS  OF THIS SECTION; FURTHER, COMPANIES SHALL EACH YEAR INCREASE
ITS MINIMUM RESERVE, ASSUMING IT IS LESS THAN ONE HUNDRED PERCENT OF THE
RESPECTIVE AND PROPORTIONATE LIABILITY OF A COMPANY  FOR  THE  AGGREGATE
DEFICIT  OF THE ASSOCIATION, BY THE PERCENTAGE INCREASE IN THE AGGREGATE
DEFICIT OF THE ASSOCIATION FROM THE PREVIOUS YEAR.
  (B) THE SUPERINTENDENT SHALL, FOR A YEAR IN WHICH THE AGGREGATE  DEFI-
CIT  OF  THE  ASSOCIATION  IS REPORTED BY THE ASSOCIATION AS REQUIRING A
CONTRIBUTION, INSTRUCT CONTRIBUTING COMPANIES TO INCREASE RESPECTIVE AND
PROPORTIONATE RESERVES PROVIDED FOR IN SUBSECTION (A) OF THIS SECTION BY
AN AMOUNT NOT LESS THAN  TWENTY-FIVE  PERCENT  PER  YEAR  AND  FOR  EACH
CONSECUTIVE  YEAR THEREAFTER FOR EACH YEAR THAT A CONTRIBUTION IS NECES-
SARY UNTIL SUCH TIME AS A COMPANY HAS REACHED A RESERVING LEVEL  OF  ONE
HUNDRED  PERCENT OF ITS RESPECTIVE AND PROPORTIONATE LIABILITIES FOR THE
AGGREGATE DEFICIT OF THE ASSOCIATION; PROVIDED, HOWEVER, THAT  COMPANIES
MAY  REDUCE ITS RESERVES THEREAFTER BY SUCH AMOUNT IN AND FOR THE SECOND
CONSECUTIVE YEAR AND EACH YEAR THEREAFTER IN WHICH A CONTRIBUTION IS NOT
REQUIRED TO THE MINIMUM RESERVE PROVIDED FOR IN SUBSECTION (A)  OF  THIS
SECTION.
  S 2. This act shall take effect December 31, 2012 and shall be consid-
ered  in  effect  for  the  purposes of companies' 2012 annual financial
statements; provided, however, that this section shall expire on  Decem-
ber  31,  2016; provided further, that the superintendent shall evaluate
the proper reserving level necessary for maintaining  adequate  security
for  the  aggregate deficit of the association in light of loss develop-
ment trends, claims settlement  trends,  actuarial  projections  of  the
financial  condition  of the association and other factors and report to
the legislature on the findings of such evaluation no later  than  March
31, 2016.

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Senate Bill S5808

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

Jun 20, 2011 - Floor Vote

Floor Vote: Jun 20, 2011

Jun 20, 2011 - Rules Committee Vote

Rules Committee Vote: Jun 20, 2011

Bill Amendments

co-Sponsors

2011-S5808 - Details

2011-S5808 - Summary

2011-S5808 - Sponsor Memo

2011-S5808 - Bill Text download pdf

co-Sponsors

2011-S5808A (ACTIVE) - Details

2011-S5808A (ACTIVE) - Summary

2011-S5808A (ACTIVE) - Sponsor Memo

2011-S5808A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5808

Share this bill

Sponsored By

John A. DeFrancisco

Archive: Last Bill Status - In Senate Committee Insurance Committee

Bill Amendments

co-Sponsors

Jack M. Martins

2011-S5808 - Details

2011-S5808 - Summary

2011-S5808 - Sponsor Memo

2011-S5808 - Bill Text download pdf

co-Sponsors

Jack M. Martins

2011-S5808A (ACTIVE) - Details

2011-S5808A (ACTIVE) - Summary

2011-S5808A (ACTIVE) - Sponsor Memo

2011-S5808A (ACTIVE) - Bill Text download pdf

Comments