BILL NUMBER: S7221
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to extending certain
provisions relating to medical malpractice insurers
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to amend the Insurance Law in relation to
extending certain provisions related to medical malpractice insurers.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill would amend Insurance Law 1325 to extend until
December 31, 2028, the exemption from the risk-based capital ("RBC")
requirements of Insurance Law 1324 for those stock and non-stock insur-
ers to which 1324 (b) (2) (B) applies.
Section 2 would amend Insurance Law *S 2343(c) to extend until December
31, 2028, the prohibition on making an application for an order of reha-
bilitation or liquidation of a domestic insurer on the grounds that the
insurer is insolvent or has failed or refused to comply with an order of
the Superintendent of Financial Services to make good an impairment of
its capital or minimum surplus to policyholders, when the insurer's
primary liability arises from the business of medical malpractice insur-
ance.
 
JUSTIFICATION:
Medical malpractice insurers have been afforded certain exemptions from
various rules pertaining to financial reporting and regulation. This
bill extends the exemptions from RBC requirements and from an applica-
tion for an order or rehabilitation or liquidation until December 31,
2028.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S7221: 1325 insurance law, 2343 insurance law, 2343(c) insurance law