Assembly Bill A10773

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10773
 
                           I N  A S S E M B L Y
 
                               April 1, 2026
                                ___________
 
 Introduced by M. of A. LEE -- read once and referred to the Committee on
   Insurance
 
 AN  ACT  to amend the insurance law, in relation to authorizing residen-
   tial cooperative  corporations  and  tenant's  associations  to  offer
   health insurance
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 1 of subsection (c) of section 4235 of the insur-
 ance law is amended by adding two new paragraphs (O) and (P) to read  as
 follows:
   (O) A POLICY ISSUED TO A RESIDENTIAL COOPERATIVE CORPORATION ORGANIZED
 UNDER  THE  BUSINESS  CORPORATION LAW OR COOPERATIVE CORPORATIONS LAW OF
 THE STATE OF NEW YORK, FOR THE BENEFIT OF  ITS  SHAREHOLDERS  AND  THEIR
 DEPENDENTS, PROVIDED THAT:
   (I) THE COOPERATIVE HAS BEEN IN ACTIVE EXISTENCE FOR NOT LESS THAN TWO
 YEARS PRIOR TO THE ISSUANCE OF SUCH POLICY;
   (II)  THE  COOPERATIVE  IS  NOT  FORMED  OR  MAINTAINED SOLELY FOR THE
 PURPOSE OF OBTAINING INSURANCE; AND
   (III) THE POLICY IS ISSUED BY AN INSURER AUTHORIZED TO DO THE BUSINESS
 OF ACCIDENT AND HEALTH INSURANCE IN THIS STATE.
   (P) A POLICY ISSUED TO A TENANT'S ASSOCIATION WHICH  SUCH  ASSOCIATION
 HAS BEEN ORGANIZED AND MAINTAINED IN GOOD FAITH FOR PURPOSES PRINCIPALLY
 OTHER THAN THAT OF OBTAINING INSURANCE AND HAVE BEEN IN ACTIVE EXISTENCE
 FOR AT LEAST TWO YEARS.
   § 2. Subsection (b) of section 1101 of the insurance law is amended by
 adding a new paragraph 9 to read as follows:
   (9)  NOTWITHSTANDING  THE  FOREGOING, A RESIDENTIAL COOPERATIVE CORPO-
 RATION OR TENANT'S ASSOCIATION THAT CONTRACTS WITH AN AUTHORIZED INSURER
 TO PROVIDE GROUP ACCIDENT AND HEALTH INSURANCE TO ITS MEMBERS AND  THEIR
 DEPENDENTS  PURSUANT  TO  PARAGRAPHS  (O)  AND  (P)  OF PARAGRAPH ONE OF
 SUBSECTION (C) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF  THIS
 CHAPTER  SHALL NOT BE DEEMED TO BE DOING AN INSURANCE BUSINESS SOLELY BY
 REASON OF SPONSORING SUCH COVERAGE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13943-02-6
              

 A. 10773                            2
 
   § 3. The superintendent of financial services  shall  promulgate  such
 rules and regulations as may be necessary to implement the provisions of
 this  act,  including  but not limited to standards relating to solvency
 protection, nondiscrimination, disclosure  of  benefits,  and  reporting
 requirements  applicable  to  residential  cooperative health groups and
 tenant's association health groups.
   § 4. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law. Effective immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of  this  act  on  its  effective  date  are
 authorized to be made and completed on or before such date.