N.Y. Insurance Law § 5517-a: Return of association premium

§ 5517-a. Return of association premium. (a) Notwithstanding any

inconsistent provision of this chapter or any other law to the contrary,

if the superintendent determines, for policies of excess coverage or

equivalent excess coverage issued by the association and purchased on

behalf of eligible participating physicians and dentists, that the rates

established pursuant to subdivision one of section forty of chapter two

hundred sixty-six of the laws of nineteen hundred eighty-six, as

amended, have produced premium amounts greater than required to satisfy

the standard that premiums shall be fixed at the lowest possible rates

consistent with the maintenance of solvency and of reasonable reserves

and surplus therefor, then the superintendent shall direct the

association and all officers and directors of the association with

responsibility for custody or investment of the association's assets to

return a portion of such premium to the purchaser in an amount not less

than the estimated cost of all premiums necessary for the purchase of

excess or equivalent excess coverage for eligible participating

physicians and dentists for the policy year July first, nineteen hundred

ninety-seven to June thirtieth, nineteen hundred ninety-eight, for the

policy year July first, nineteen hundred ninety-eight to June thirtieth,

nineteen hundred ninety-nine, for the policy year July first, nineteen

hundred ninety-nine to June thirtieth, two thousand, and if the

superintendent deems it necessary, 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. Following such determination, the superintendent shall

deliver to the association a schedule providing payment in twelve

monthly installments for the return of such premium due for the policy

year July first, nineteen hundred ninety-seven to June thirtieth,

nineteen hundred ninety-eight, no later than September first, nineteen

hundred ninety-seven, for the return of such premium due for the policy

year July first, nineteen hundred ninety-eight to June thirtieth,

nineteen hundred ninety-nine, no later than September first, nineteen

hundred ninety-eight, and for the return of such premium due for the

policy year July first, nineteen hundred ninety-nine to June thirtieth,

two thousand, no later than September first, nineteen hundred

ninety-nine and for the policy year July first, two thousand to June

thirtieth, two thousand one, no later than September first, two

thousand. Payment to the purchaser for the policy year shall be made

prior to the end of the applicable policy year. Upon the association's

receipt of notice of such determination and delivery of such schedule,

the association and all officers and directors of the association with

responsibility for custody or investment of the association's assets are

hereby authorized and directed to return the portion of such premium

amounts to the purchaser according to such schedule. For policies of

excess or equivalent excess coverage provided pursuant to section

eighteen of chapter two hundred sixty-six of the laws of nineteen

hundred eighty-six, as amended, the hospital excess liability pool

created pursuant to subdivision five of section eighteen of such chapter

shall be deemed to be the purchaser. The premium levels for excess

coverage established by the superintendent shall, for the purpose of

determining any projected deficiency as the basis for imposing a

surcharge pursuant to subdivision one of section forty of such chapter

as amended, be modified to reflect any such return of premium directed

by the superintendent.

(b) 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 such director,

officer or employee, or against such public officer or employee, or

against such actuary, attorney or advisor, or against the association,

but for the provisions of this section, shall be brought against the

state.