Bill Text: NY A07821 | 2011-2012 | General Assembly | Amended
Bill Title: Relates to private air ambulance service insurance exemptions.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-06-11 - print number 7821e [A07821 Detail]
Download: New_York-2011-A07821-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7821--A
2011-2012 Regular Sessions
I N A S S E M B L Y
May 18, 2011
___________
Introduced by M. of A. MAGNARELLI -- read once and referred to the
Committee on Insurance -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to private air ambulance
service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Legislative intent. The legislature hereby finds the insur-
2 ance law inadequate in its current form as section 1108 of such law
3 provides no exemptions for air ambulance companies wishing to subscribe
4 memberships. Some areas of the state are severely lacking in air trans-
5 port and rescue services. By creating a new subsection in section 1108
6 of the insurance law, we create an environment conducive to air ambu-
7 lance companies while creating protections for their membership and the
8 people within their catchment area.
9 S 2. Section 1108 of the insurance law is amended by adding a new
10 subsection (k) to read as follows:
11 (K) (1) FOR PURPOSES OF THIS SUBSECTION:
12 (I) "AIR AMBULANCE SERVICE" SHALL MEAN AN AMBULANCE SERVICE THAT USES
13 AIRCRAFT TO TRANSPORT PERSONS IN NEED OF MEDICAL CARE IN ACCORDANCE WITH
14 SUBDIVISION TWO OF SECTION THREE THOUSAND ONE OF THE PUBLIC HEALTH LAW.
15 (II) "SUBSCRIPTION SERVICE" SHALL MEAN ACCEPTING LUMP SUM OR PERIODIC
16 PAYMENTS IN ADVANCE TO COVER ALL OR SOME PART OF THE COST OF AIR AMBU-
17 LANCE SERVICES PROVIDED TO A MEMBER SUBSCRIBER;
18 (2) A PRIVATE AIR AMBULANCE SERVICE AS DEFINED IN PARAGRAPH ONE OF
19 THIS SUBSECTION THAT SOLICITS MEMBERSHIP SUBSCRIPTIONS, ACCEPTS MEMBER-
20 SHIP APPLICATIONS, CHARGES MEMBERSHIP FEES, AND PROVIDES AIR AMBULANCE
21 SERVICES TO SUBSCRIPTION MEMBERS AND DESIGNATED MEMBERS OF THEIR HOUSE-
22 HOLD IS NOT AN INSURER, IS NOT IN THE BUSINESS OF INSURANCE, AND IS NOT
23 SELLING INSURANCE, IF THE PRIVATE AIR AMBULANCE SERVICE:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10652-09-1
A. 7821--A 2
1 (I) POSTS A SURETY BOND IN AN AMOUNT OF FIVE THOUSAND DOLLARS FOR
2 EVERY ONE THOUSAND SUBSCRIBERS OR A PORTION THEREOF, EXECUTED BY A SURE-
3 TY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE BY THE DEPART-
4 MENT, TO ENSURE THAT THE STATE OF NEW YORK SHALL HAVE ADEQUATE FUNDS TO
5 COMPENSATE MEMBERS IN THE INSTANCE THAT THE AIR AMBULANCE SERVICE SHALL
6 NO LONGER HAVE A VALID OPERATING CERTIFICATE TO PROVIDE SUCH SERVICE;
7 (II) PROVIDES IN THE MEMBERSHIP MATERIALS A DESCRIPTION OF THE TERMS
8 UNDER WHICH THE MEMBER IS PROVIDED AIR AMBULANCE SERVICE INCLUDING,
9 LENGTH OF TIME THE MEMBERSHIP COVERS, AIR AMBULANCE SERVICE COSTS THAT
10 ARE COVERED BY MEMBERSHIP FEES, EXCLUSIONS FROM PROVISION OF SERVICE,
11 DISCOUNT AMOUNTS AND A STATEMENT PROVIDING CLEAR DISCLOSURE TO APPLI-
12 CANTS AND MEMBERS THAT THIS IS NOT INSURANCE AND MEMBERSHIP CANNOT BE
13 CONSIDERED SECONDARY INSURANCE COVERAGE OR A SUPPLEMENT TO ANY INSURANCE
14 COVERAGE;
15 (III) OFFERS SUBSCRIPTION MEMBERSHIPS SOLELY BY THE AIR AMBULANCE
16 PROVIDER HOLDING A VALID OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT
17 OF HEALTH; AND
18 (IV) HAS SUBMITTED EVIDENCE OF ITS COMPLIANCE WITH THIS SECTION TO THE
19 SUPERINTENDENT.
20 S 3. This act shall take effect on the one hundred twentieth day after
21 it shall have become a law. Effective immediately, the addition, amend-
22 ment and/or repeal of any rule or regulation necessary for the implemen-
23 tation of this act on its effective date is authorized to be made on or
24 before such effective date.
