§ 5509. Stabilization reserve fund. (a) The association shall
maintain a stabilization reserve fund. The fund shall be used for
payment to the association of any deficit, or for reimbursement to the
association's members for payment of any deficit arising out of the
operations of the association or for such other purposes as are provided
for in this section. Except in the case of a premium payment made
pursuant to subsection (c) of this section, a deficit shall exist
whenever the sum of the premiums collected by the association and the
investment income on policyholder supplied funds is exhausted in payment
of the association's administrative expenses, reserves for loss, reserve
for loss adjustment expenses, loss and loss adjustment expenses, and
taxes.

(b) Each qualified health care provider policyholder shall annually
pay to the association a stabilization reserve fund charge in an amount
equal to twenty percent of the annual premium charge until the net value
of the fund exceeds fifty million dollars. Thereafter, such charges
shall be made only when the net value of the fund is less than
twenty-five million dollars and shall continue annually until the net
value of the fund exceeds fifty million dollars. There shall be no
stabilization reserve fund charge payable or receivable in connection
with determining the actuarially appropriate amounts for the provision
of coverage to comply with the transfer requirements of subsections (c)
and (d) of section three thousand four hundred thirty-six and paragraphs
three and four of subsection (f) of section five thousand five hundred
four of this chapter. There shall be no stabilization reserve fund
charge payable if the net value of the fund is less than fifty million
dollars due to a transfer pursuant to subsections (c) and (d) of this
section.

(c) In addition to those purposes provided for in subsection (a) of
this section, the stabilization reserve fund shall also be used for the
payment of premiums for excess or equivalent excess coverage provided
pursuant to the program established by chapter two hundred sixty-six of
the laws of nineteen hundred eighty-six, as amended, for the period of
coverage between July first, two thousand and June thirtieth, two
thousand one.

(d) The association and such officers and directors thereof
responsible for the custody and investment of the stabilization reserve
fund shall transfer from such fund and deposit to the hospital excess
liability pool created pursuant to section eighteen of chapter two
hundred sixty-six of the laws of nineteen hundred eighty-six such
amounts as directed by the superintendent for the purchase of excess or
equivalent excess coverage for eligible participating physicians and
dentists for the policy year July first, two thousand to June thirtieth,
two thousand one, and the cost of administering the hospital excess
liability pool for such applicable policy year, pursuant to the program
established in chapter two hundred sixty-six of the laws of nineteen
hundred eighty-six, as amended, no later than July fifteenth, two
thousand.

Notwithstanding any other provision of law, no director, officer, or
employee of the association, nor the association, nor any public officer
or employee, nor any actuary, attorney, or advisor to the association or
to the superintendent shall incur or suffer any liability whatsoever to
any person by reason of actions taken pursuant to this section. Any
action which could have been brought against any of the persons or
parties or entities noted herein, but for the provisions of this
section, shall be brought against the state.

(e) Upon termination of the association and the discharge of all of
its liabilities any excess funds remaining in the stabilization reserve
fund shall be distributed to the policyholders of the association in an
equitable manner as set forth in the plan of operation.