Superintendent Neil D. Levin today announced that legislation enacted into law yesterday provides the Insurance Department with a more flexible timeframe to complete its dissolution plan for the Medical Malpractice Insurance Association (MMIA). Pursuant to Chapter 147 of the Laws of 2000, the Department now has up until June 30, 2001 to complete the dissolution process. The Department today issued a supplemental order which affirms the continuation of the Department’s previous orders and preserves all prior actions in connection with the dissolution of MMIA. Effective July 1, 2000, MMIA stopped issuing and renewing medical malpractice insurance policies.

            "The new legislation gives us greater discretion and flexibility for closing out all of the affairs of the MMIA," said Levin. "Given the progress made on the MMIA transaction and the smooth transition to the pooling mechanism, we are confident that the remaining issues surrounding the dissolution will be efficiently and effectively resolved. The Plan the Department has adopted will assure continuation of the robust private medical malpractice market that has provided the necessary coverage to protect all New Yorkers."

            Legislation approved in 1999 directed the Department to approve a plan for dissolution pursuant to statute. In April of this year the Department approved a dissolution plan for the MMIA that provided for a reinsurance agreement transferring the MMIA’s liabilities. In June, the Department promulgated a regulation that created a private pool through which new policies would be issued to insureds that are unable to find coverage in the voluntary market. Since July 1, the private pool has been accepting risks on new and renewal business.