Bill Text: NY S06694 | 2015-2016 | General Assembly | Introduced

---

Bill Title: Relates to catastrophic or reinsurance coverage issued to certain small groups.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-03-11 - SIGNED CHAP.12 [S06694 Detail]

Download: New_York-2015-S06694-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          6694
                    IN SENATE
                                    February 5, 2016
                                       ___________
        Introduced  by  Sen.  SEWARD -- 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 catastrophic or  rein-
          surance coverage issued to certain small groups; to amend a chapter of
          the  laws  of 2015 amending the insurance law relating to catastrophic
          or reinsurance coverage issued to certain small groups, as proposed in
          legislative bills numbers S. 6004 and A.   8300, in  relation  to  the
          effectiveness of such chapter; and in relation to directing the super-
          intendent of financial services to contract with an independent entity
          to  conduct  an  assessment regarding the impact of the prohibition on
          the sale of stop loss, catastrophic and reinsurance  coverage  to  the
          small  group  market;  to amend a chapter of the laws of 2015 amending
          the insurance law relating to  catastrophic  or  reinsurance  coverage
          issued  to  certain  small  groups,  as  proposed in legislative bills
          numbers S.5928-A and A.8134-A, in relation  to  the  effectiveness  of
          such chapter; and to repeal section 4 of a chapter of the laws of 2015
          amending  the  insurance  law  relating to catastrophic or reinsurance
          coverage issued to certain small groups, as  proposed  in  legislative
          bills numbers S. 6004 and A. 8300, relating thereto
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph 1 of subsection (h) of section 3231 of the insur-
     2  ance law, as amended by a chapter of  the  laws  of  2015  amending  the
     3  insurance law relating to catastrophic or reinsurance coverage issued to
     4  certain  small  groups,  as proposed in legislative bills numbers S.6004
     5  and A.8300, is amended to read as follows:
     6    (1) Notwithstanding any other provision of this chapter,  no  insurer,
     7  subsidiary  of  an  insurer,  or  controlled person of a holding company
     8  system may act as an administrator or claims paying agent, as opposed to
     9  an insurer, on behalf of small groups which, if  they  purchased  insur-
    10  ance,  would  be  subject to this section. No insurer[, subsidiary of an
    11  insurer, or controlled person of a holding  company]  may  provide  stop
    12  loss,  catastrophic  or  reinsurance  coverage to small groups which, if
    13  they purchased insurance, would be subject to this section.    Provided,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11569-16-6