§ 5517 — Transfer of association funds; reinsurance evaluation

§ 5517. Transfer of association funds; reinsurance evaluation. (a) In\nthe event that the association has not caused the transfer of certain\nassets on or before May first, nineteen hundred ninety-two, pursuant to\nthe provisions of section fifty-five hundred sixteen of this article,\nthe board shall undertake an evaluation of the procurement of\nreinsurance, upon so much of its book of business as is attributable to\npolicies of excess coverage or equivalent excess coverage purchased on\nbehalf of physicians and dentists, as is authorized by paragraph five of\nsubsection (e) of section fifty-five hundred two of this article,\nspecifically assessing the ability of any such reinsurance program to\nyield such funds as are necessary to effectuate the transfer of assets,\nin the form and amount provided for in section fifty-five hundred\nsixteen of this article.\n (b) Any such plan of reinsurance developed pursuant to the evaluation\nundertaken pursuant to subsection (a) of this section shall be subject\nto the final, non-reviewable determination of the superintendent as to\nits sufficiency in meeting the objectives provided for in section\nfifty-five hundred sixteen of this article, that the plan of reinsurance\nprovides for the ceding of risks to one or more reinsurers approved by\nthe superintendent, that the plan of reinsurance in no way adversely\naffects the solvency of the association, and that the plan of\nreinsurance to be effectuated through the association's engaging one or\nmore such reinsurers in a contract for the ceding of risk not later than\nJuly first, nineteen hundred ninety-two.\n (c) The amounts provided for in section fifty-five hundred sixteen of\nthis article, constituting the assets to be transferred, shall be\ntransferred not later than August first, nineteen hundred ninety-two and\nonly after actuarial certification that such assets constitute "surplus\nsurplus", or that portion of surplus not otherwise necessary for the\npayment of claims. Upon such certification of such assets as "surplus\nsurplus", and not otherwise necessary for the payment of claims, such\nassets shall be transferred not later than the date provided for herein.\nSuch transfer shall be deemed to be a transfer authorized by subsection\n(a) of section five thousand five hundred sixteen of this article.\n (d) In the event that the association has failed to comply with the\nprovisions of this section by the time periods provided for herein, the\nassociation shall be prohibited from pursuing any such reinsurance plan\nas a method of averting the imposition of the provisions of section\nninety-one hundred ten of this chapter.\n