2023 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.