N.Y. Insurance Law § 4714: Transition

§ 4714. Transition. For municipal cooperative health benefit plans

that provided medical, surgical or hospital services on or before

January first, nineteen hundred ninety-three pursuant to a municipal

cooperation agreement authorized under article five-G of the general

municipal law, the reserve and surplus requirements in section four

thousand seven hundred six of this article may be phased in over a

period of up to five plan years, provided that:

(a) the amount for the reserve described in paragraph one of

subsection (a) of section four thousand seven hundred six of this

article:

(1) at the end of the first plan year on or after the effective date

of this article shall not be less than twelve percent of expected

incurred claims and expenses thereon for such plan year; and

(2) at the end of each subsequent plan year during the phase-in period

shall not be less than the actual percentage amount in the previous

year, plus an amount equal to the difference between such actual

percentage amount and the percentage amount otherwise required under

section four thousand seven hundred six of this article, divided by the

number of years remaining in the phase-in period;

(b) the amount of surplus:

(1) at the end of the first plan year on or after the effective date

of this article shall not be less than two percent of the annualized

earned premium equivalents during such plan year; and

(2) at the end of each subsequent plan year shall not be less than the

actual percentage amount in the previous plan year, plus an amount equal

to the difference between such actual percentage amount and the

percentage otherwise required under section four thousand seven hundred

six of this article, divided by the number of years remaining in the

phase-in period; and

(c) the superintendent may reduce the aggregate or specific stop-loss

retention amounts or attachment points, referred to in section four

thousand seven hundred seven of this article, during the phase-in period

for any municipal cooperative health benefit plan which consists of

fewer than five municipal corporations or which covers less than two

thousand employees and retirees.