NY Ins L § 5509 (2021)
2021 New York Laws ISC - Insurance Article 55 - Medical Malpractice Insurance Association 5509 - Stabilization Reserve Fund.

§  5509.  Stabilization  reserve  fund.  (a)  The  association shall maintain a stabilization reserve  fund.  The  fund  shall  be  used  for payment  to  the association of any deficit, or for reimbursement to the association's members for payment of any  deficit  arising  out  of  the operations of the association or for such other purposes as are provided for  in  this  section.  Except  in  the  case of a premium payment made pursuant to subsection (c)  of  this  section,  a  deficit  shall  exist whenever  the  sum  of the premiums collected by the association and the investment income on policyholder supplied funds is exhausted in payment of the association's administrative expenses, reserves for loss, reserve for loss adjustment expenses, loss and  loss  adjustment  expenses,  and taxes.  (b)  Each  qualified  health care provider policyholder shall annually pay to the association a stabilization reserve fund charge in an  amount equal to twenty percent of the annual premium charge until the net value of  the  fund  exceeds  fifty  million dollars. Thereafter, such charges shall be made only  when  the  net  value  of  the  fund  is  less  than twenty-five  million  dollars  and shall continue annually until the net value of the fund exceeds fifty  million  dollars.  There  shall  be  no stabilization  reserve  fund  charge payable or receivable in connection with determining the actuarially appropriate amounts for  the  provision of  coverage to comply with the transfer requirements of subsections (c) and (d) of section three thousand four hundred thirty-six and paragraphs three and four of subsection (f) of section five thousand  five  hundred four  of  this  chapter.  There  shall  be no stabilization reserve fund charge payable if the net value of the fund is less than  fifty  million dollars  due  to  a transfer pursuant to subsections (c) and (d) of this section.  (c) In addition to those purposes provided for in  subsection  (a)  of this  section, the stabilization reserve fund shall also be used for the payment of premiums for excess or equivalent  excess  coverage  provided pursuant  to the program established by chapter two hundred sixty-six of the laws of nineteen hundred eighty-six, as amended, for the  period  of coverage  between  July  first,  two  thousand  and  June thirtieth, two thousand one.  (d)  The  association  and  such  officers   and   directors   thereof responsible  for the custody and investment of the stabilization reserve fund shall transfer from such fund and deposit to  the  hospital  excess liability  pool  created  pursuant  to  section  eighteen of chapter two hundred sixty-six of  the  laws  of  nineteen  hundred  eighty-six  such amounts  as directed by the superintendent for the purchase of excess or equivalent excess coverage for  eligible  participating  physicians  and dentists for the policy year July first, two thousand to June thirtieth, two  thousand  one,  and  the  cost of administering the hospital excess liability pool for such applicable policy year, pursuant to the  program established  in  chapter  two  hundred sixty-six of the laws of nineteen hundred eighty-six, as  amended,  no  later  than  July  fifteenth,  two thousand.   Notwithstanding  any  other provision of law, no director, officer, or employee of the association, nor the association, nor any public officer or employee, nor any actuary, attorney, or advisor to the association or to the superintendent shall incur or suffer any liability whatsoever  to any  person  by  reason  of  actions taken pursuant to this section. Any action which could have been brought  against  any  of  the  persons  or parties  or  entities  noted  herein,  but  for  the  provisions of this section, shall be brought against the state.  (e) Upon termination of the association and the discharge  of  all  of its  liabilities any excess funds remaining in the stabilization reserve  fund shall be distributed to the policyholders of the association in  an equitable manner as set forth in the plan of operation.