S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8692
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 23, 2019
                                ___________
 
 Introduced by M. of A. STIRPE -- read once and referred to the Committee
   on Insurance
 
 AN  ACT to amend the insurance law, in relation to catastrophic or rein-
   surance coverage issued to certain small groups
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 1 of subsection (g) of section 3231 of the insur-
 ance  law,  as  amended by chapter 12 of the laws of 2016, is amended by
 adding a new subparagraph (C) to read as follows:
   (C) SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL NOT APPLY TO GROUPS WHICH
 HAVE BEEN FORMED PURSUANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW
 FOR THE PURPOSE OF JOINTLY PURCHASING HEALTH INSURANCE AND ARE COMPRISED
 ENTIRELY OF ONE OR MORE MUNICIPAL CORPORATIONS  OR  DISTRICTS  (AS  SUCH
 TERMS  ARE  DEFINED  IN  SECTION  ONE  HUNDRED NINETEEN-N OF THE GENERAL
 MUNICIPAL LAW).
   § 2. Paragraph 1 of subsection (g) of section 3231  of  the  insurance
 law, as amended by section 2 of subpart A of part J of chapter 57 of the
 laws of 2019, is amended to read as follows:
   (1)  This  section  shall  also  apply  to  policies issued to a group
 defined in subsection (c) of section four thousand two  hundred  thirty-
 five  OF  THIS  CHAPTER,  including but not limited to an association or
 trust of employers, if the group includes one or more  member  employers
 or  other  member  groups  which  have one hundred or fewer employees or
 members exclusive of spouses and  dependents.  For  policies  issued  or
 renewed  on  or after January first, two thousand fourteen, if the group
 includes one or more member small group employers eligible for  coverage
 subject  to this section, then such member employers shall be classified
 as small groups for rating purposes and the remaining members  shall  be
 rated  consistent  with  the  rating  rules applicable to such remaining
 members pursuant to paragraph two of  this  subsection.  THIS  PARAGRAPH
 SHALL  NOT  APPLY  TO  GROUPS WHICH HAVE BEEN FORMED PURSUANT TO ARTICLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13823-02-9

 A. 8692                             2
 
 FIVE-G OF THE GENERAL MUNICIPAL LAW FOR THE PURPOSE OF JOINTLY  PURCHAS-
 ING HEALTH INSURANCE AND ARE COMPRISED ENTIRELY OF ONE OR MORE MUNICIPAL
 CORPORATIONS  OR  DISTRICTS,  AS  SUCH  TERMS ARE DEFINED IN SECTION ONE
 HUNDRED NINETEEN-N OF THE GENERAL MUNICIPAL LAW.
   §  3.  Paragraph  1 of subsection (d) of section 4317 of the insurance
 law, as amended by chapter 12 of the laws of 2016, is amended by  adding
 a new subparagraph (C) to read as follows:
   (C) SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL NOT APPLY TO GROUPS WHICH
 HAVE BEEN FORMED PURSUANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW
 FOR THE PURPOSE OF JOINTLY PURCHASING HEALTH INSURANCE AND ARE COMPRISED
 ENTIRELY  OF  ONE  OR  MORE MUNICIPAL CORPORATIONS OR DISTRICTS (AS SUCH
 TERMS ARE DEFINED IN SECTION  ONE  HUNDRED  NINETEEN-N  OF  THE  GENERAL
 MUNICIPAL LAW).
   §  4.  Paragraph  1 of subsection (d) of section 4317 of the insurance
 law, as amended by section 7 of subpart A of part J of chapter 57 of the
 laws of 2019, is amended to read as follows:
   (1) This section shall also apply to a  contract  issued  to  a  group
 defined  in  subsection (c) of section four thousand two hundred thirty-
 five of this chapter, including but not limited  to  an  association  or
 trust  of  employers, if the group includes one or more member employers
 or other member groups which have one  hundred  or  fewer  employees  or
 members  exclusive  of  spouses  and dependents. For contracts issued or
 renewed on or after January first, two thousand fourteen, if  the  group
 includes  one or more member small group employers eligible for coverage
 subject to this section, then such member employers shall be  classified
 as  small  groups for rating purposes and the remaining members shall be
 rated consistent with the rating  rules  applicable  to  such  remaining
 members pursuant to paragraph two of this subsection. PROVIDED, HOWEVER,
 THIS  SUBSECTION SHALL NOT APPLY TO GROUPS WHICH HAVE BEEN FORMED PURSU-
 ANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW FOR  THE  PURPOSE  OF
 JOINTLY PURCHASING HEALTH INSURANCE AND ARE COMPRISED ENTIRELY OF ONE OR
 MORE  MUNICIPAL  CORPORATIONS OR DISTRICTS, AS SUCH TERMS ARE DEFINED IN
 SECTION ONE HUNDRED NINETEEN-N OF THE GENERAL MUNICIPAL LAW.
   § 5. This act shall take effect immediately, provided that the  amend-
 ments  to  paragraph 1 of subsection (g) of section 3231 and paragraph 1
 of subsection (d) of section 4317 of the insurance law made by  sections
 one  and three of this act shall be subject to the expiration and rever-
 sion of such paragraphs pursuant to section 5 of chapter 588 of the laws
 of 2015, as amended, when upon such date the provisions of sections  two
 and four, respectively, of this act shall take effect.