Amd §5, Chap 589 of 2015; amd §5, Chap 588 of 2015
Amends provisions of a chapter of 2018, extending provisions of law relating to catastrophic or reinsurance coverage issued to certain small groups, as proposed in S.8995 and A.11014.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4947
SPONSOR: Cook TITLE OF BILL:
An act to amend chapter 589 of the laws of 2015, amending the insurance
law relating to catastrophic or reinsurance coverage issued to certain
small groups, in relation to the effectiveness thereof; and to amend
chapter 588 of the laws of 2015, amending the insurance law relating to
catastrophic or reinsurance coverage issued to certain small groups, in
relation to the effectiveness thereof
PURPOSE:
This is a chapter amendment that makes changes to provisions of L.2018,
c.457, to extend provisions of law relating to catastrophic or reinsur-
ance coverage issued to certain small groups and to exempt certain
municipal corporations from small group rating standards.
SUMMARY OF PROVISIONS:
Section one of the chapter amendment would extend for an additional two
years the provisions of chapter, 589 of the laws of 2015, as amended
thereafter, which provided that small groups between the size of 51-100
who had reinsurance policies in effect on 1/1/2015 may continue to be
eligible to renew such policy or purchase re-insurance between 1/1/2016
and 1/1/2017 and renew such policy thereafter, and which also exempted
municipal corporations with member employers with 100 or fewer employees
from small group rating standards.
Section two of the bill would extend for an additional two years the
provisions of chapter 588 of the laws of 2015, as amended thereafter,
which provided that small, groups between the size of 51-100 who had
reinsurance policies in effect on 1/1/2015 may continue to be eligible
to renew such policy or purchase reinsurance between 1/1/2016 and
1/1/2017 and renew such policy thereafter, and which also exempted
municipal corporations• with member employers with 100 or fewer employ-
ees from small group rating standards.
Section three of the bill provides the effective date.
EXISTING LAW:
Section 5 of Chapter 589 of the laws of 2015 and Section 5 of Chapter
588 of the laws of 2015 amended the insurance law relating to
catastrophic or reinsurance coverage issued to certain small groups, to
allow an extension Of the ability of those certain small groups to
purchase re-insurance coverage, and exempted certain municipal corpo-
rations from small_ group rating standards. Chapter 457 of the law of
2018 would repeal such provisions after nine years.
JUSTIFICATION:
Concern was raised that the original bill which repealed the small group
extensions after five more years (for nine years in total) provided too
long of an extension. At the same time, it was recognized that addi-
tional time may be necessary to transition the impacted groups into the
small group market. Accordingly, two years were agreed-upon as the chap-
ter amendment, as opposed to the five-year extension that 5.8995 and
A.11014 initially contemplated.
LEGISLATIVE HISTORY:
Chapter amendment to Chapter 457 of the Laws of 2018. S.8995 and A.11014
passed both the Senate and Assembly in June of 2018.
FISCAL IMPLICATIONS:
Unknown
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
4947
2019-2020 Regular Sessions
IN ASSEMBLY
February 5, 2019
___________
Introduced by M. of A. COOK -- read once and referred to the Committee
on Insurance
AN ACT to amend chapter 589 of the laws of 2015, amending the insurance
law relating to catastrophic or reinsurance coverage issued to certain
small groups, in relation to the effectiveness thereof; and to amend
chapter 588 of the laws of 2015, amending the insurance law relating
to catastrophic or reinsurance coverage issued to certain small
groups, in relation to the effectiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 5 of chapter 589 of the laws of 2015, amending the
2 insurance law relating to catastrophic or reinsurance coverage issued to
3 certain small groups, as amended by a chapter of the laws of 2018 amend-
4 ing chapter 589 of the laws of 2015 relating to catastrophic or reinsur-
5 ance coverage issued to certain small groups, as proposed in legislative
6 bills numbers S. 8995 and A. 11014, is amended to read as follows:
7 § 5. This act shall take effect on the same date and in the same
8 manner as a chapter of the laws of 2015 amending the insurance law
9 relating to catastrophic or reinsurance coverage issued to certain small
10 groups, as proposed in legislative bills numbers S.5928-A and A.8134-A,
11 takes effect and shall be deemed repealed [nine] six years thereafter.
12 § 2. Section 5 of chapter 588 of the laws of 2015, amending the insur-
13 ance law relating to catastrophic or reinsurance coverage issued to
14 certain small groups, as amended by a chapter of the laws of 2018 amend-
15 ing chapter 589 of the laws of 2015 relating to catastrophic or reinsur-
16 ance coverage issued to certain small groups, as proposed in legislative
17 bills numbers S. 8995 and A. 11014, is amended to read as follows:
18 § 5. This act shall take effect immediately; and shall be deemed
19 repealed [9] 6 years after it shall have become a law.
20 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07032-01-9
