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.