Authorizes residential cooperative corporations to offer health insurance

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:

     1    Section 1. Paragraph 1 of subsection (c) of section 4235 of the insur-
     2  ance law is amended by adding two new paragraphs (O) and (P) to read  as
     3  follows:
     4    (O) A POLICY ISSUED TO A RESIDENTIAL COOPERATIVE CORPORATION ORGANIZED
     5  UNDER  THE  BUSINESS  CORPORATION LAW OR COOPERATIVE CORPORATIONS LAW OF
     6  THE STATE OF NEW YORK, FOR THE BENEFIT OF  ITS  SHAREHOLDERS  AND  THEIR
     7  DEPENDENTS, PROVIDED THAT:
     8    (I) THE COOPERATIVE HAS BEEN IN ACTIVE EXISTENCE FOR NOT LESS THAN TWO
     9  YEARS PRIOR TO THE ISSUANCE OF SUCH POLICY;
    10    (II)  THE  COOPERATIVE  IS  NOT  FORMED  OR  MAINTAINED SOLELY FOR THE
    11  PURPOSE OF OBTAINING INSURANCE; AND
    12    (III) THE POLICY IS ISSUED BY AN INSURER AUTHORIZED TO DO THE BUSINESS
    13  OF ACCIDENT AND HEALTH INSURANCE IN THIS STATE.
    14    (P) A POLICY ISSUED TO A TENANT'S ASSOCIATION WHICH  SUCH  ASSOCIATION
    15  HAS BEEN ORGANIZED AND MAINTAINED IN GOOD FAITH FOR PURPOSES PRINCIPALLY
    16  OTHER THAN THAT OF OBTAINING INSURANCE AND HAVE BEEN IN ACTIVE EXISTENCE
    17  FOR AT LEAST TWO YEARS.
    18    § 2. Subsection (b) of section 1101 of the insurance law is amended by
    19  adding a new paragraph 9 to read as follows:
    20    (9)  NOTWITHSTANDING  THE  FOREGOING, A RESIDENTIAL COOPERATIVE CORPO-
    21  RATION OR TENANT'S ASSOCIATION THAT CONTRACTS WITH AN AUTHORIZED INSURER
    22  TO PROVIDE GROUP ACCIDENT AND HEALTH INSURANCE TO ITS MEMBERS AND  THEIR
    23  DEPENDENTS  PURSUANT  TO  PARAGRAPHS  (O)  AND  (P)  OF PARAGRAPH ONE OF
    24  SUBSECTION (C) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF  THIS
    25  CHAPTER  SHALL NOT BE DEEMED TO BE DOING AN INSURANCE BUSINESS SOLELY BY
    26  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

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