Enacted Law Bulletin

August 1, 2000

The following is a list of bills recently signed and/or vetoed by the Governor. Should you require copies of any of these bills, please contact the Association office at (518) 432-4227.

A.11417 Grannis / S.8138 Rules (Signed Chapter 147)

Amends the insurance law, civil practice law, and other laws relating to malpractice and professional medical conduct in regarding medical malpractice insurance. The most significant provision of the bill extends the expiration of the Medical Malpractice Insurance Association (MMIA) until June 30, 2001. The Superintendent has issued an order to “sell” MMIA to the Medical Liability Mutual Insurance Company (MLMIC). The bill also states that the dissolution and cessation of activities shall be fully accomplished and the association shall be deemed dissolved at such time and under such conditions as the Superintendent deems proper. The extension of MMIA is essential since the association is due a federal tax refund of approximately $200 million. Should MMIA dissolve before the refund is issued, there will be no entity to accept the tax refund and the anticipated income will vanish. The Superintendent has issued a notice that MMIA will no longer be writing any new business and is not renewing any policies. To complicate matters, the state has raided the MMIA surplus several times. They have issued dry appropriations requiring MMIA to deposit money into the state’s General Fund transferring $60 million in 1992, $150 million in 1993, and $481 million in 1996—a grand total of nearly $700 million. The industry has filed a lawsuit (NYIA is a party in the suit) to require that the state pay back the money to MMIA before any further assessments could be placed on companies.

A.8602 Butler / S. 3315 Spano (Signed Chapter 149)

Amends the workers’ compensation law to permit commissioners of the State Insurance Fund (SIF) to choose the installment premium payment plans applicable to SIF policies and to make other changes to improve the administration of SIF. Section 1 of the bill amends Section 92 of the workers’ compensation law to permit SIF to replace the prescribed three installment premium payment plan for all SIF policyholders with an estimated premium of $1,000 with an installment plan to be adopted by SIF’s commissioners. Section 2 of the bill amends Section 83 of the workers’ compensation law to permit SIF’s commissioners to adopt, amend or repeal a rule at the meeting at which it is proposed. Section 3 of the bill provides for an additional Deputy Executive Director at SIF. Section 4 of the bill states that this act shall take effect immediately.

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