A 10773: Authorizes residential cooperative corporations to offer health insurance.

  
  STATE OF NEW YORK ________________________________________________________________________ 10773  IN ASSEMBLY 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.