§ 5517-A — Return of association premium

§ 5517-a. Return of association premium. (a) Notwithstanding any\ninconsistent provision of this chapter or any other law to the contrary,\nif the superintendent determines, for policies of excess coverage or\nequivalent excess coverage issued by the association and purchased on\nbehalf of eligible participating physicians and dentists, that the rates\nestablished pursuant to subdivision one of section forty of chapter two\nhundred sixty-six of the laws of nineteen hundred eighty-six, as\namended, have produced premium amounts greater than required to satisfy\nthe standard that premiums shall be fixed at the lowest possible rates\nconsistent with the maintenance of solvency and of reasonable reserves\nand surplus therefor, then the superintendent shall direct the\nassociation and all officers and directors of the association with\nresponsibility for custody or investment of the association's assets to\nreturn a portion of such premium to the purchaser in an amount not less\nthan the estimated cost of all premiums necessary for the purchase of\nexcess or equivalent excess coverage for eligible participating\nphysicians and dentists for the policy year July first, nineteen hundred\nninety-seven to June thirtieth, nineteen hundred ninety-eight, for the\npolicy year July first, nineteen hundred ninety-eight to June thirtieth,\nnineteen hundred ninety-nine, for the policy year July first, nineteen\nhundred ninety-nine to June thirtieth, two thousand, and if the\nsuperintendent deems it necessary, for the policy year July first, two\nthousand to June thirtieth, two thousand one, and the cost of\nadministering the hospital excess liability pool for such applicable\npolicy year. Following such determination, the superintendent shall\ndeliver to the association a schedule providing payment in twelve\nmonthly installments for the return of such premium due for the policy\nyear July first, nineteen hundred ninety-seven to June thirtieth,\nnineteen hundred ninety-eight, no later than September first, nineteen\nhundred ninety-seven, for the return of such premium due for the policy\nyear July first, nineteen hundred ninety-eight to June thirtieth,\nnineteen hundred ninety-nine, no later than September first, nineteen\nhundred ninety-eight, and for the return of such premium due for the\npolicy year July first, nineteen hundred ninety-nine to June thirtieth,\ntwo thousand, no later than September first, nineteen hundred\nninety-nine and for the policy year July first, two thousand to June\nthirtieth, two thousand one, no later than September first, two\nthousand. Payment to the purchaser for the policy year shall be made\nprior to the end of the applicable policy year. Upon the association's\nreceipt of notice of such determination and delivery of such schedule,\nthe association and all officers and directors of the association with\nresponsibility for custody or investment of the association's assets are\nhereby authorized and directed to return the portion of such premium\namounts to the purchaser according to such schedule. For policies of\nexcess or equivalent excess coverage provided pursuant to section\neighteen of chapter two hundred sixty-six of the laws of nineteen\nhundred eighty-six, as amended, the hospital excess liability pool\ncreated pursuant to subdivision five of section eighteen of such chapter\nshall be deemed to be the purchaser. The premium levels for excess\ncoverage established by the superintendent shall, for the purpose of\ndetermining any projected deficiency as the basis for imposing a\nsurcharge pursuant to subdivision one of section forty of such chapter\nas amended, be modified to reflect any such return of premium directed\nby the superintendent.\n (b) Notwithstanding any other provision of law, no director, officer\nor employee of the association, nor the association, nor any public\nofficer or employee, nor any actuary, attorney, or advisor to the\nassociation or to the superintendent shall incur or suffer any liability\nwhatsoever to any person by reason of actions taken pursuant to this\nsection. Any action which could have been brought against such director,\nofficer or employee, or against such public officer or employee, or\nagainst such actuary, attorney or advisor, or against the association,\nbut for the provisions of this section, shall be brought against the\nstate.\n