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
feedback