§ 4714. Transition. For municipal cooperative health benefit plans\nthat provided medical, surgical or hospital services on or before\nJanuary first, nineteen hundred ninety-three pursuant to a municipal\ncooperation agreement authorized under article five-G of the general\nmunicipal law, the reserve and surplus requirements in section four\nthousand seven hundred six of this article may be phased in over a\nperiod of up to five plan years, provided that:\n (a) the amount for the reserve described in paragraph one of\nsubsection (a) of section four thousand seven hundred six of this\narticle:\n (1) at the end of the first plan year on or after the effective date\nof this article shall not be less than twelve percent of expected\nincurred claims and expenses thereon for such plan year;
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§ 4714. Transition. For municipal cooperative health benefit plans\nthat provided medical, surgical or hospital services on or before\nJanuary first, nineteen hundred ninety-three pursuant to a municipal\ncooperation agreement authorized under article five-G of the general\nmunicipal law, the reserve and surplus requirements in section four\nthousand seven hundred six of this article may be phased in over a\nperiod of up to five plan years, provided that:\n (a) the amount for the reserve described in paragraph one of\nsubsection (a) of section four thousand seven hundred six of this\narticle:\n (1) at the end of the first plan year on or after the effective date\nof this article shall not be less than twelve percent of expected\nincurred claims and expenses thereon for such plan year; and\n (2) at the end of each subsequent plan year during the phase-in period\nshall not be less than the actual percentage amount in the previous\nyear, plus an amount equal to the difference between such actual\npercentage amount and the percentage amount otherwise required under\nsection four thousand seven hundred six of this article, divided by the\nnumber of years remaining in the phase-in period;\n (b) the amount of surplus:\n (1) at the end of the first plan year on or after the effective date\nof this article shall not be less than two percent of the annualized\nearned premium equivalents during such plan year; and\n (2) at the end of each subsequent plan year shall not be less than the\nactual percentage amount in the previous plan year, plus an amount equal\nto the difference between such actual percentage amount and the\npercentage otherwise required under section four thousand seven hundred\nsix of this article, divided by the number of years remaining in the\nphase-in period; and\n (c) the superintendent may reduce the aggregate or specific stop-loss\nretention amounts or attachment points, referred to in section four\nthousand seven hundred seven of this article, during the phase-in period\nfor any municipal cooperative health benefit plan which consists of\nfewer than five municipal corporations or which covers less than two\nthousand employees and retirees.\n