NY A10577

Allows New York institutions of higher education with at least one billion dollars in endowment to establish and maintain self-funded student health plans upon obtaining a Certificate of Authority from the Superintendent of Financial Services.

Requires institutions offering student health plans to comply with consumer protection laws, maintain an 82 percent expected loss ratio (subject to Superintendent modification), establish adequate reserves including a contingent reserve fund of at least 5 percent of annualized earned premiums, and file annual financial reports within 120 days of fiscal year close.

Mandates that institutions obtain a qualified actuary to support proposed premiums, provide student contracts, establish fair claims review and dispute resolution procedures, and maintain separate accounting records for plan assets and expenses.

Permits the Superintendent to examine institutions' student health plans, suspend or revoke certificates for non-compliance, and impose penalties up to $1,000 per day (capped at $25,000) for failure to file required reports or respond to inquiries.

Takes effect January 1, 2013, with the Superintendent authorized to immediately begin accepting applications and promulgating necessary regulations.