Bill Text: NY S06966 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to the regulation of health maintenance organizations.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2014-04-09 - REFERRED TO INSURANCE [S06966 Detail]
Download: New_York-2013-S06966-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6966
I N S E N A T E
April 9, 2014
___________
Introduced by Sens. SEWARD, GRIFFO -- (at request of the Department of
Financial Services) -- read twice and ordered printed, and when print-
ed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to adding additional
compliance measures for certain health maintenance organizations,
expanding the definition of a domestic insurer and the applicability
of risk-based capital for life insurance and health maintenance organ-
izations (Part A); to amend the insurance law, in relation to extend-
ing rate periods for certain motor vehicle insurance rates, adding an
additional date for the superintendent to collect, analyze and compile
periodic reports regarding certain property/casualty insurance poli-
cies, extending the date for exemptions on certain property/casualty
insurance policies, and extending certain rate periods and in relation
to extending the authority of the New York property and insurance
underwriting association (Part B); to amend chapter 322 of the laws of
2007, amending the banking law relating to the power of banks, private
bankers, trust companies, savings banks, savings and loan associ-
ations, credit unions and foreign banking corporations to exercise the
rights of national banks, federal savings associations, federal credit
unions and federal branches and agencies of foreign banks, in relation
to the effectiveness of certain provisions of such chapter; and to
amend chapter 3 of the laws of 1997, amending the banking law and the
insurance law relating to authorizing the banking board to permit
banks and trust companies to exercise the rights of national banks, in
relation to the effectiveness of certain provisions of such chapter
(Part C); and to amend chapter 507 of the laws of 2009 amending the
real property actions and proceedings law and other laws relating to
foreclosure actions on home mortgage loans, in relation to extending
certain provisions of such chapter (Part D)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. This act enacts into law components of legislation relating
2 to the regulation of health maintenance organizations. Each component
3 is wholly contained within a Part identified as Parts A through D. The
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14111-02-4
S. 6966 2
1 effective date for each particular provision contained within such Part
2 is set forth in the last section of such Part. Any provision in any
3 section contained within a Part, including the effective date of the
4 Part, which makes a reference to a section "of this act", when used in
5 connection with that particular component, shall be deemed to mean and
6 refer to the corresponding section of the Part in which it is found.
7 Section three of this act sets forth the general effective date of this
8 act.
9 PART A
10 Section 1. Subsection (a) of section 1109 of the insurance law, as
11 amended by chapter 246 of the laws of 2005, is amended to read as
12 follows:
13 (a) An organization complying with the provisions of article forty-
14 four of the public health law may operate without being licensed under
15 this chapter and without being subject to any provisions of this chap-
16 ter, except: (1) to the extent that such organization must comply with
17 the provisions of this chapter by virtue of such article, and (2) the
18 provisions of sections three hundred eight, [three hundred thirteen,
19 three hundred thirty-two,] one thousand three hundred one, one thousand
20 three hundred two, one thousand three hundred seven, ONE THOUSAND THREE
21 HUNDRED TWENTY-TWO, WITH REGARD TO HEALTH MAINTENANCE ORGANIZATIONS THAT
22 ARE DOMICILED IN THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE
23 OTHER STATE, two thousand one hundred three, two thousand one hundred
24 twelve, two thousand one hundred fourteen, two thousand one hundred
25 fifteen, two thousand one hundred seventeen, two thousand one hundred
26 twenty-three, two thousand six hundred eight-a, two thousand six hundred
27 twelve, three thousand two hundred twenty-four-a, four thousand three
28 hundred eight, four thousand three hundred seventeen, four thousand
29 three hundred eighteen, four thousand three hundred twenty, four thou-
30 sand three hundred twenty-one, four thousand three hundred twenty-two
31 and four thousand three hundred twenty-three of this chapter.
32 S 2. The section heading of section 1322 of the insurance law, as
33 added by chapter 215 of the laws of 1993, is amended to read as follows:
34 Risk-based capital for life [and] INSURANCE COMPANIES, accident and
35 health insurance companies, CORPORATIONS ORGANIZED PURSUANT TO ARTICLE
36 FORTY-THREE OF THIS CHAPTER, AND CERTAIN HEALTH MAINTENANCE ORGANIZA-
37 TIONS.
38 S 3. Paragraph 3 of subsection (a) of section 1322 of the insurance
39 law, as added by chapter 215 of the laws of 1993, is amended to read as
40 follows:
41 (3) "Domestic insurer" means any authorized life insurance company or
42 accident and health insurance company incorporated or organized under
43 any law of this state; CORPORATION ORGANIZED PURSUANT TO ARTICLE FORTY-
44 THREE OF THIS CHAPTER; OR HEALTH MAINTENANCE ORGANIZATION DOMICILED IN
45 THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE OTHER STATE.
46 S 4. Subsection (b) and paragraph 1 of subsection (c) of section 1322
47 of the insurance law, as added by chapter 215 of the laws of 1993, are
48 amended to read as follows:
49 (b) Applicability. This section shall apply to every authorized life
50 insurance company and accident and health insurance company INCORPORATED
51 OR ORGANIZED UNDER ANY LAW OF THIS STATE; CORPORATION ORGANIZED PURSUANT
52 TO ARTICLE FORTY-THREE OF THIS CHAPTER; OR HEALTH MAINTENANCE ORGANIZA-
53 TION DOMICILED IN THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE
54 OTHER STATE.
S. 6966 3
1 (1) Every domestic insurer OTHER THAN A HEALTH MAINTENANCE ORGANIZA-
2 TION DOMICILED IN THIS STATE AND CERTIFIED OR OPERATING IN AT LEAST ONE
3 OTHER STATE shall, on or prior to each March fifteenth, AND EVERY SUCH
4 HEALTH MAINTENANCE ORGANIZATION, ON OR PRIOR TO EACH APRIL FIFTEENTH
5 (the "filing date"), prepare and submit to the superintendent a report
6 of its RBC levels as of the end of the calendar year just ended, in a
7 form and containing such information as is required by the RBC
8 instructions. In addition, the insurer shall file the RBC report:
9 (A) With the National Association of Insurance Commissioners in
10 accordance with the RBC instructions; and
11 (B) With the insurance commissioner in any state in which the insurer
12 is authorized to do business, upon the written request of the insurance
13 commissioner. The insurer shall file the RBC report by the later of:
14 (i) The filing date; or
15 (ii) Fifteen days after the date of the request.
16 S 5. Subparagraph (D) of paragraph 2 of subsection (c) of section 1322
17 of the insurance law, as added by chapter 215 of the laws of 1993, is
18 amended to read as follows:
19 (D) All other business risks and such other [relevent] RELEVANT risks
20 as are set forth in the RBC instructions.
21 S 6. Paragraph 1 of subsection (d) of section 1322 of the insurance
22 law, as added by chapter 215 of the laws of 1993, is amended to read as
23 follows:
24 (1) "Company action level event" means, with respect to a domestic
25 insurer:
26 (A) The filing by the insurer of a RBC report indicating that: (i) The
27 insurer's total adjusted capital is greater than or equal to its regula-
28 tory action level RBC but less than its company action level RBC; or
29 (ii) (I) The insurer has total adjusted capital [which] THAT is great-
30 er than or equal to its company action level RBC but less than the prod-
31 uct of [2.5] 3.0 and its authorized control level RBC; and
32 (II) there is a negative trend;
33 (B) The notification by the superintendent to the insurer of an
34 adjusted RBC report that indicates the occurrence of an event described
35 in item (i) or (ii) of subparagraph (A) of this paragraph, provided the
36 insurer does not challenge the adjusted RBC report under subsection (h)
37 of this section; or
38 (C) If, under subsection (h) of this section, the insurer challenges
39 an adjusted RBC report that indicates the occurrence of an event
40 described in item (i) or (ii) of subparagraph (A) of this paragraph,
41 THEN the notification by the superintendent to the insurer that the
42 superintendent has, after a hearing, rejected the insurer's challenge.
43 S 7. Paragraphs 2 and 3 of subsection (l) of section 1322 of the
44 insurance law, as added by chapter 215 of the laws of 1993, are amended
45 to read as follows:
46 (2) In the event of [an] A regulatory action level event under subpar-
47 agraph (A), (B) or (C) of paragraph one of subsection (e) of this
48 section the superintendent shall take the actions required under
49 subsection (d) of this section.
50 (3) In the event of [an] A regulatory action level event under subpar-
51 agraph (D), (E), (F), (G), (H) or (I) of paragraph one of subsection (e)
52 of this section or an authorized control level event, the superintendent
53 shall take the actions required under subsection (e) of this section
54 with respect to the insurer.
55 S 8. This act shall take effect immediately.
S. 6966 4
1 PART B
2 Section 1. Sections 2328 and 2329 of the insurance law, as amended by
3 chapter 102 of the laws of 2011, are amended to read as follows:
4 S 2328. Certain motor vehicle insurance rates; prior approval. For the
5 periods February first, nineteen hundred seventy-four through August
6 second, two thousand one, and the effective date of the
7 property/casualty insurance availability act through June thirtieth, two
8 thousand [fourteen] NINETEEN, no changes in rates, rating plans, rating
9 rules and rate manuals applicable to motor vehicle insurance, including
10 no-fault coverages under article fifty-one of this chapter, shall be
11 made effective until approved by the superintendent, notwithstanding any
12 inconsistent provisions of this article; provided, however, that changes
13 in such rates, rating plans, rating rules and rate manuals may be made
14 effective without such approval if the rates [which] THAT result from
15 such changes are no higher than the insurer's rates last approved by the
16 superintendent. This section shall apply only to policies covering loss-
17 es or liabilities arising out of ownership of a motor vehicle used prin-
18 cipally for the transportation of persons for hire, including a bus or a
19 school bus as defined in sections one hundred four and one hundred
20 forty-two of the vehicle and traffic law.
21 S 2329. Motor vehicle insurance rates; excess profits. In accordance
22 with regulations prescribed by the superintendent, each insurer issuing
23 policies [which] THAT are subject to article fifty-one of this chapter,
24 including policies of motor vehicle personal injury liability insurance
25 or policies of motor vehicle property damage liability insurance or
