N.Y. Insurance Law § 5517: Transfer of association funds; reinsurance evaluation

§ 5517. Transfer of association funds; reinsurance evaluation. (a) In

the event that the association has not caused the transfer of certain

assets on or before May first, nineteen hundred ninety-two, pursuant to

the provisions of section fifty-five hundred sixteen of this article,

the board shall undertake an evaluation of the procurement of

reinsurance, upon so much of its book of business as is attributable to

policies of excess coverage or equivalent excess coverage purchased on

behalf of physicians and dentists, as is authorized by paragraph five of

subsection (e) of section fifty-five hundred two of this article,

specifically assessing the ability of any such reinsurance program to

yield such funds as are necessary to effectuate the transfer of assets,

in the form and amount provided for in section fifty-five hundred

sixteen of this article.

(b) Any such plan of reinsurance developed pursuant to the evaluation

undertaken pursuant to subsection (a) of this section shall be subject

to the final, non-reviewable determination of the superintendent as to

its sufficiency in meeting the objectives provided for in section

fifty-five hundred sixteen of this article, that the plan of reinsurance

provides for the ceding of risks to one or more reinsurers approved by

the superintendent, that the plan of reinsurance in no way adversely

affects the solvency of the association, and that the plan of

reinsurance to be effectuated through the association's engaging one or

more such reinsurers in a contract for the ceding of risk not later than

July first, nineteen hundred ninety-two.

(c) The amounts provided for in section fifty-five hundred sixteen of

this article, constituting the assets to be transferred, shall be

transferred not later than August first, nineteen hundred ninety-two and

only after actuarial certification that such assets constitute "surplus

surplus", or that portion of surplus not otherwise necessary for the

payment of claims. Upon such certification of such assets as "surplus

surplus", and not otherwise necessary for the payment of claims, such

assets shall be transferred not later than the date provided for herein.

Such transfer shall be deemed to be a transfer authorized by subsection

(a) of section five thousand five hundred sixteen of this article.

(d) In the event that the association has failed to comply with the

provisions of this section by the time periods provided for herein, the

association shall be prohibited from pursuing any such reinsurance plan

as a method of averting the imposition of the provisions of section

ninety-one hundred ten of this chapter.