§ 5509 — Stabilization reserve fund

New York § 5509

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 55: Medical Malpractice Insurance Association

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§ 5509. Stabilization reserve fund. (a) The association shall\nmaintain a stabilization reserve fund. The fund shall be used for\npayment to the association of any deficit, or for reimbursement to the\nassociation's members for payment of any deficit arising out of the\noperations of the association or for such other purposes as are provided\nfor in this section. Except in the case of a premium payment made\npursuant to subsection (c) of this section, a deficit shall exist\nwhenever the sum of the premiums collected by the association and the\ninvestment income on policyholder supplied funds is exhausted in payment\nof the association's administrative expenses, reserves for loss, reserve\nfor loss adjustment expenses, loss and loss adjustment expenses, and\ntaxes.\n (b) Each qualified health care provider policyholder shall annually\npay to the association a stabilization reserve fund charge in an amount\nequal to twenty percent of the annual premium charge until the net value\nof the fund exceeds fifty million dollars. Thereafter, such charges\nshall be made only when the net value of the fund is less than\ntwenty-five million dollars and shall continue annually until the net\nvalue of the fund exceeds fifty million dollars. There shall be no\nstabilization reserve fund charge payable or receivable in connection\nwith determining the actuarially appropriate amounts for the provision\nof coverage to comply with the transfer requirements of subsections (c)\nand (d) of section three thousand four hundred thirty-six and paragraphs\nthree and four of subsection (f) of section five thousand five hundred\nfour of this chapter. There shall be no stabilization reserve fund\ncharge payable if the net value of the fund is less than fifty million\ndollars due to a transfer pursuant to subsections (c) and (d) of this\nsection.\n (c) In addition to those purposes provided for in subsection (a) of\nthis section, the stabilization reserve fund shall also be used for the\npayment of premiums for excess or equivalent excess coverage provided\npursuant to the program established by chapter two hundred sixty-six of\nthe laws of nineteen hundred eighty-six, as amended, for the period of\ncoverage between July first, two thousand and June thirtieth, two\nthousand one.\n (d) The association and such officers and directors thereof\nresponsible for the custody and investment of the stabilization reserve\nfund shall transfer from such fund and deposit to the hospital excess\nliability pool created pursuant to section eighteen of chapter two\nhundred sixty-six of the laws of nineteen hundred eighty-six such\namounts as directed by the superintendent for the purchase of excess or\nequivalent excess coverage for eligible participating physicians and\ndentists for the policy year July first, two thousand to June thirtieth,\ntwo thousand one, and the cost of administering the hospital excess\nliability pool for such applicable policy year, pursuant to the program\nestablished in chapter two hundred sixty-six of the laws of nineteen\nhundred eighty-six, as amended, no later than July fifteenth, two\nthousand.\n Notwithstanding any other provision of law, no director, officer, or\nemployee of the association, nor the association, nor any public officer\nor employee, nor any actuary, attorney, or advisor to the association or\nto the superintendent shall incur or suffer any liability whatsoever to\nany person by reason of actions taken pursuant to this section. Any\naction which could have been brought against any of the persons or\nparties or entities noted herein, but for the provisions of this\nsection, shall be brought against the state.\n (e) Upon termination of the association and the discharge of all of\nits liabilities any excess funds remaining in the stabilization reserve\nfund shall be distributed to the policyholders of the association in an\nequitable manner as set forth in the plan of operation.\n