MMIA was a non-profit unincorporated association of all insurers engaged in writing personal injury liability insurance in New York. MMIA was created in 1975 by an act of the legislature to provide a market for medical malpractice insurance at a time when the availability of such coverage was severely limited. The enactment authorized MMIA for six years. The legislature periodically extended this authority. In 1999, the legislature enacted legislation providing for MMIA's dissolution by August 31, 2000, which was to be accomplished pursuant to a plan approved by the Superintendent of Insurance following a hearing in accordance with Insurance Law § 5502.
MMIA ceased writing policies effective June 30, 2000 and it was replaced by a new assumed risk mechanism, Medical Malpractice Insurance Pool ("MMIP"), which was to begin writing policies effective July 1, 2000. MMIA, acted as temporary administrator for MMIP from July 1, 2000 through March 31, 2001.
In July 11, 2000, the legislature amended the MMIA dissolution statute to provide for its dissolution when the superintendent deemed it proper instead of the August 31, 2000 date designated in the initial legislation. In a supplemental opinion dated July 12, 2000, the Superintendent directed that MMIA would continue solely for purposes of winding up its affairs upon implementation of the Medical Liability Malpractice Insurance Company ("MLMIC") Plan. According to this plan, on July 14, 2000, MMIA and MLMIC entered into an Indemnity and Assumption Reinsurance Agreement and an Administrative Services Agreement. This reinsurance agreement called for MMIA to pay MLMIC premium payments by December 27, 2000, at which time MLMIC would assume all MMIA's insurance obligations. The Superintendent, in accordance with Article 74, proceeded to petition the court for an order directing him to liquidate MMIA as a domestic insurer who has commenced voluntary dissolution. The order was entered on May 14, 2001.