Bill Text: NY A09311 | 2015-2016 | General Assembly | Introduced
Bill Title: Creates the health insurance guaranty fund.
Spectrum: Strong Partisan Bill (Democrat 47-4)
Status: (Introduced - Dead) 2016-02-17 - referred to insurance [A09311 Detail]
Download: New_York-2015-A09311-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9311 IN ASSEMBLY February 17, 2016 ___________ Introduced by M. of A. GOTTFRIED, LAVINE -- read once and referred 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: 1 Section 1. Subsection (e) of section 7402 of the insurance law is 2 amended to read as follows: 3 (e) Is found, after examination, to be in such condition that its 4 further transaction of business will be hazardous to its policyholders, 5 creditors, or the public. This shall include a health insurer, as 6 defined in article eighty-one of this chapter, that is consistently 7 unable to meet the requirements of section three thousand two hundred 8 twenty-four-a of this chapter. 9 § 2. Section 7403 of the insurance law is amended by adding a new 10 subsection (e) to read as follows: 11 (e)(1) Upon a determination by the superintendent and the rehabilita- 12 tor that funds from the New York health insurance consumer protection 13 security fund are necessary to meet the requirements of article eighty- 14 one of this chapter, the superintendent shall make available such funds 15 as are necessary, pursuant to the requirements of such article. 16 (2) The superintendent shall advance such funds as may be necessary 17 pursuant to subsection (d) of section eight thousand one hundred four of 18 this chapter. The rehabilitator and the superintendent shall establish a 19 plan, if possible, for repayment of the advance, at a rate of interest 20 determined by the superintendent. 21 (3) Advances, pursuant to paragraph two of this subsection, shall, in 22 all respects except to rate of interest, be subject to the provisions of 23 section one thousand three hundred seven of this chapter, provided that 24 in the event that an insurer which has received an advance pursuant to 25 this subsection is subsequently the subject of an order of liquidation, 26 the claim of the fund for the advance and any accrued interest shall 27 have priority above claims of all nonsecured creditors, provided the 28 requirements of article eighty-one of this chapter have been met, and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13972-01-6