§ 5039. Duties of superintendent of financial services. The superintendent of financial services shall establish rules and procedures for determining which insurers, self-insurers, plans or arrangements are financially qualified to provide the security required under this article and to be designated as qualified insurers.
The superintendent of financial services sets the rules and procedures deciding which insurers/self-insurers/plans are financially qualified to provide the security and be designated qualified insurers.
★ Exam hits:
Applies to medical, dental, and podiatric malpractice (and wrongful death from it). Personal-injury/other cases use the parallel Article 50-b.
$500,000 is the future-pain-and-suffering threshold: ≤ $500k → lump sum; over it → upfront lump sum of the greater of 35% or $500,000, rest streamed.
Future pain & suffering stream is capped at 8 years; each year grows 4% over the prior year.
Future economic/pecuniary damages: 35% of present value paid upfront, rest as an annuity; permanent items run for the plaintiff's whole life, lost earnings run the full jury term.
Discount rate = 10-year U.S. Treasury Bond rate on the verdict date (add 2 points for the portion beyond 20 years).
Deduction order under (f): set-offs → litigation expenses → attorney's fees → liens.
Security must be an annuity (§ 5032); post it within 30 days (§ 5033) or risk owing the full lump sum.
Miss a payment → creditor can demand all remaining payments, totaled WITHOUT present-value discounting (§ 5034).
Assignments allowed only for support, health care, or attorney's fees/expenses (§ 5038).
Verbatim statute: CPLR - Article 50-a
Marked in the text: penalties, time limits, sums of money. Editorial emphasis added by this edition; it does not appear in the statute as enacted.
In print
This provision appears in Volume 2 — The JG-22 CPLR and in Volume 1 — The JG-22 in Plain English.