Senate Bill S10220

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10220
 
                             I N  S E N A T E
 
                                May 6, 2026
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to  authorizing  residen-
   tial cooperative corporations 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 a new subparagraph (O) 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.
   § 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 THAT CONTRACTS WITH AN AUTHORIZED INSURER TO PROVIDE GROUP  ACCI-
 DENT  AND  HEALTH INSURANCE TO ITS MEMBERS AND THEIR DEPENDENTS PURSUANT
 TO SUBPARAGRAPH (O) 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.
   §  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.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such date.
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13943-06-6