Senate Bill S8316

2017-2018 Legislative Session

Creates the health insurance guaranty fund

download bill text pdf

Sponsored By

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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2017-S8316 (ACTIVE) - Details

See Assembly Version of this Bill:
A4328
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:
2015-2016: S6667, A9311
2019-2020: A2910
2021-2022: A912
2023-2024: A7153

2017-S8316 (ACTIVE) - Summary

Creates the health insurance guaranty fund.

2017-S8316 (ACTIVE) - Sponsor Memo

2017-S8316 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8316
 
                             I N  S E N A T E
 
                              April 30, 2018
                                ___________
 
 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.
   §  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
              

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