New York Laws
Article 11 - Licensing of Insurers
1109 - Limited Exemption for Health Maintenance Organizations.

(b) An organization which provides health care services for a periodic
fee paid in advance but which does not comply with the provisions of
article forty-four of the public health law shall be deemed to be
engaged in the business of insurance and may not operate without being
licensed under this chapter.
(c) An organization referred to in subsection (a) or (b) hereof shall
be subject to article seventy-four of this chapter.
(d) A health maintenance organization may make any investment
permitted for a health service corporation organized pursuant to article
forty-three of this chapter provided that the superintendent, after
consultation with the commissioner of health, may modify such investment
requirements, if such modification would permit the organization to more
effectively implement its program without incurring undue risk to its
subscribers.
(e) The superintendent may promulgate regulations in effectuating the
purposes and provisions of this chapter and article forty-four of the
public health law and may modify requirements applicable to the
contracts between a health maintenance organization and its subscribers,
subject to such limitations as the superintendent shall deem necessary
or proper to insure the performance of such contracts.