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insurer either as a cash payment to the insured or to reduce the insured's premium, unless the insured assigns the dividend or rate reduction to the policyholder. If a dividend or rate reduction is payable upon termination of the policy the insurer shall either make payment to the insured or to the policyholder upon receipt of a certification from the policyholder that the dividend or rate reduction will be distributed by the policyholder to the insureds or applied to reduce the insured's premium.

(B) The provisions of subparagraph (A) of this paragraph shall apply to New York residents insured under a policy issued in any other jurisdiction to a group which is not of the type described in subparagraphs (A) through (J) of paragraph one of this subsection.

§ 15. Subparagraph (F) of paragraph three of subsection (a) of section four thousand two hundred thirty-seven of such law is amended to read as follows:

(F) Under a policy or contract issued to insure; (i) any other substantially similar group approved by the superintendent as eligible for insurance under a blanket accident and health insurance policy or contract; or (ii) any other group approved by the superintendent upon a finding that: (I) there is a common enterprise or economic or social affinity or relationship; (II) the premiums charged are reasonable in relation to the benefits provided; and (III) the issuance of the policy would result in economies of acquisition or administration, would be actuarially sound, and would not be contrary to the best interest of the public. The superintendent shall promulgate regulations setting forth any such groups that have been accepted as qualifying pursuant to this subparagraph.

§ 16. Section four thousand two hundred thirty-seven of such law is amended by adding a new subsection (d) to read as follows:

(d) (1) Any dividend hereafter apportioned on any participating blanket insurance policy, or any rate reduction hereafter made or continued on any non-participating blanket policy for the first or any subsequent year of insurance under any such policy heretofore or hereafter issued under item (ii) of subparagraph (F) of paragraph three of subsection (a) of this section may be applied to reduce the policyholder's part of the cost of such policy, except that the excess, if any, of the insured's aggregate contribution under the policy over the net cost (gross premium less dividends or rate reductions) of the insurance shall be applied at the discretion of the insurer either as a cash payment to the insured or to reduce the insured's premium, unless the insured assigns the dividend or rate reduction to the policyholder. If a dividend or rate reduction is payable upon termination of the policy the insurer shall either make payment to the insured or to the policyholder upon receipt of a certification from the policyholder that the dividend or rate reduction will be distributed by the policyholder to the insureds or applied to reduce the insured's premium.

(2) The provisions of paragraph one of this subsection shall apply to New York residents insured under a policy issued in any other jurisdiction to a group which is not of the type described in subparagraphs (A) through (E) and item (i) of subparagraph (F) of paragraph three of subsection (a) of this section.

§ 17. Section four thousand three hundred five of such law is amended by adding a new subsection (e) to read as follows:

(e) In addition to the conversion privilege afforded by subsection (d) of this section, a group contract issued by a hospital service, health service or medical expense indemnity corporation shall provide that if all or any portion of the insurance on an employee or member insured under the policy ceases because of termination of employment or membership in the class or classes eligible for coverage under the policy, such employee or member shall be entitled without evidence of insurability upon application to continue his insurance for himself or herself and his her eligible dependents, subject to all of the group contract's terms and conditions applicable to those forms of benefits and to the following conditions:

or

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

(1) Continuation shall not be available for: (A) any person who is covered, becomes covered or could be covered by title XVIII of the United States Social Security Act (Medicare) as amended or superseded; or (B) an employee, member or dependent who is covered, becomes covered or could be covered as an employee, member or dependent by any other insured or uninsured arrangement which provides hospital, surgical medical coverage for individuals in a group.

or

(2) An employee or member who wishes continuation of coverage must request such continuation in writing within the twenty day period following the later of: (A) the date of such termination; or (B) the date the employee is given notice of the right of continuation by either his employer or the group policyholder. In no event, however, may the employee or member elect continuation more than thirty-one days after the date of such termination.

(3) An employee or member electing continuation must pay to the group policyholder or his employer, but not more frequently than on a monthly basis in advance, the amount of the required premium payment but not more than the group rate for the benefits being continued under the group contract on the due date of each payment. The employee's or member's written election of continuation, together with the first premium payment required to establish premium payment on a monthly basis in advance, must be given to the policyholder or employer within thirty-one days of the date the employee's or member's benefits would otherwise terminate.

(4) Subject to paragraph one of this subsection, continuation of benefits under the group contract for any person shall terminate at the first to occur of the following:

(A) The date six months after the date the employee's or member's benefits under the contract would otherwise have terminated because of termination of employment or membership; or

(B) The end of the period for which premium payments were made, if the employee or member fails to make timely payment of a required premium payment; or

(C) The date on which the group contract is terminated or, in the case of an employee, the date his employer terminated participation under the group contract. However, if this clause applies and the coverage ceasing by reason of such termination is replaced by similar coverage under another group contract, the following shall apply:

he

(i) The employee or member shall have the right to become covered under that other group contract, for the balance of the period that would have remained covered under the prior group contract in accordance with this subparagraph had a termination described in subparagraph (C) of this paragraph not occurred, and

(ii) The minimum level of benefits to be provided by the other group contract shall be the applicable level of benefits of the prior group contract reduced by any benefits payable under the prior group contract, and

(iii) The prior group contract shall continue to provide benefits to the extent of its accrued liabilities and extensions of benefits as if the replacement had not occurred.

(5) A notification of the continuation privilege and the time period in which to request continuation shall be included in each certificate of coverage.

(6) The conversion privilege afforded by subsection (d) of this section shall be available upon termination of the continuation of benefits described herein.

§ 18. This act shall apply to a group policy issued outside the state to a trustee or trustees of a fund established or participated in by two or more employers not in the same industry, of the type described in paragraph four of subsection (b) of section four thousand two hundred sixteen or subparagraph (D) of paragraph one of subsection (c) of section four thousand two hundred thirty-five, with respect to an employer principally located within the state, when the coverage for such employer becomes effective under the policy on or after January first, nineteen hundred eighty-six. For employers principally located within the state covered under such a group policy on the effective date of this act, this act shall apply to all certificate holders of that employer on the anniversary date of the effective date of coverage of the employer under the policy occurring on or after January first, nineteen hundred eighty-seven.

§ 19. This act shall take effect January first, nineteen hundred eighty-six and shall be applicable to all policies and contracts issued

or delivered on or after such date and to all certificates except as stated in section eighteen of this act, issued or delivered on or after such date, regardless of the effective date of the policies or contracts. Section ten of this act shall take effect as herein provided, but shall not operate to reduce the amount of dependent group life insurance in force on a certificate holder on the date this act shall become applicable.

CHAPTER 370

AN ACT to amend the insurance law, in relation to certain group policies Became a law July 19, 1985, with the approval of the Governor. Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The opening paragraph of subparagraph (D) of paragraph one of subsection (c) of section four thousand two hundred thirty-five of the insurance law, as amended by a chapter of the laws of nineteen hundred eighty-five, amending the insurance law relating to group insurance, as proposed in legislative bill number S. 4916, is amended to read as follows:

A policy issued to a trustee or trustees of a fund established, or participated in, by two or more employers [in the same industry] or by one or more labor unions, or by one or more employers and one or more labor unions, which trustee or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions for the benefit of persons other than the employers or the unions, subject to the following requirements:

§ 2. This act shall take effect on the same date as such chapter of the laws of nineteen hundred eighty-five takes effect.

CHAPTER 371

AN ACT to amend the insurance law, in relation to the prior approval of certain motor vehicle insurance rates

Became a law July 19, 1985, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section two thousand three hundred twenty-eight of the insurance law is amended to read as follows:

§ 2328. Motor vehicle insurance rates; prior approval. Between February first, nineteen hundred seventy-four and December thirty-first nineteen hundred [eighty-five] eighty-seven, no changes in [such] rates, rating plans, rating rules and rate manuals applicable to motor vehicle insurance, including no-fault coverages under article fifty-one of this chapter, shall be made effective until approved by the superintendent, notwithstanding any inconsistent provisions of this article; provided, however, that changes in such rates, rating plans, rating rules and rate manuals may be made effective without such approval if EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

the rates which result from such changes are no higher than the insurer's highest rates in effect at any time after September eleventh, nineteen hundred seventy-nine. This section shall apply only to policies covering losses or liabilities arising out of ownership of a motor vehicle predominantly used for nonbusiness purposes, when a natural person is the named insured under a policy of automobile insurance, or used principally for the transportation of persons for hire, including a bus a school bus as defined in sections one hundred four and one hundred forty-two of the vehicle and traffic law.

or

§ 2. This act shall take effect immediately.

CHAPTER 372

AN ACT to amend the executive law, in relation to parole for the sole purpose of deportation

Became a law July 19, 1985, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision two of section two hundred fifty-nine-i of the executive law is amended by adding new paragraph (d) to read as follows:

(d) (1) Notwithstanding the provisions of paragraphs (a), (b) and (c) of this subdivision, after the inmate has served his minimum period of imprisonment imposed by the court, if the inmate is subject to deportation by the United States Immigration and Naturalization Service, in addition to the criteria set forth in paragraph (c), the board may consider, as a factor warranting earlier release, the fact that such inmate will be deported, and may grant parole to such inmate conditioned specifically on his prompt deportation. The board may make such conditional grant of early parole only where it has received from the United States Immigration and Naturalization Service assurance (A) that an order of deportation will be executed or that proceedings will promptly be commenced for the purpose of deportation upon release of the inmate from the custody of the department of correctional services, and (B) that the inmate, if granted parole pursuant to this paragraph, will not be released from the custody of the United States Immigration and Naturalization Service, unless such release be as a result of deportation without providing the board a reasonable opportunity to arrange for execution of its warrant for the retaking of such parolee.

(ii) An inmate who has been granted parole pursuant to this paragraph shall be delivered to the custody of the United States Immigration and Naturalization Service along with the board's warrant for his retaking to be executed in the event of his release from such custody other than by deportation. In the event that such person is not deported, the board shall execute the warrant, effect his return to the custody of thẹ department of correctional services and within sixty days after such return personally interview him to determine whether he should be paroled in accordance with the provisions of paragraphs (a), (b) and (c) of this subdivision. The return of a person granted parole pursuant to

this paragraph for the reason set forth herein shall not be deemed a parole delinquency and the interruptions specified in subdivision three of section 70.40 of the penal law shall not apply, but the time spent in the custody of the United States Immigration and Naturalization Service shall be credited against the term of the sentence in accordance with the rules specified in paragraph (c) of that subdivision.

§ 2. This act shall take effect immediately.

!

CHAPTER 373

(See SPECIAL NOTE at end of Chapter.)

AN ACT to amend the administrative code of the city of New York, in relation to disposal of waterfront property

Became a law July 19, 1985, with the approval of the Governor. Passed on Home Rule request pursuant to Article IX, section 2(b) (2) of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The administrative code of the city of New York is amended by adding a new section D51-85.1 to read as follows:

§ D51-85.1 Disposal by the city of certain land located on the waterfront of Newtown Creek in block 2472, lot 350, borough of Brooklyn. The board of estimate, in its discretion, upon such terms and conditions and for such consideration as it shall determine, may authorize the sale in accordance with section three hundred eighty-four of the charter of the premises herein described, along with all of the property right, title and interest of the city in the lands fronting on the waters of Newtown Creek lying within the area described as block 2472, lot 350 on the tax map of the city of New York for the borough of Brooklyn.

2. This act shall take effect immediately.

SPECIAL NOTE. -Notwithstanding that Chapter 373 of the Laws of 1985 adds section D51-85. 1 to the former Administrative Code of the City of New York, it is the determination of the Legislative Bill Drafting Commission, pursuant to the provisions of bill section 14 of Chapter 907 of the Laws of 1985 to deem such section repealed and the provisions of bill section 8 of the Unconsolidated Law entitled "The Administrative Code of the City of New York", as enacted by such Chapter 907 of the Laws of 1985 shall apply.

CHAPTER 374

AN ACT to amend the New York city charter, in relation to permitting the sale of buildings, structures and improvements on wharf properties and market properties to persons leasing wharf properties and market properties

Became a law July 19, 1985, with the approval of the Governor. Passed on Home Rule request pursuant to Article IX, section 2(b) (2) of the Constitution by a majority vote, three-fifths being present.

The

People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section seven hundred four of the New York city charter is amended by adding a new subdivision (1) to read as follows:

(1) to sell, subject to the approval of the board of estimate, buildings, structures and other improvements on market property and wharf property to a person leasing such property pursuant to subdivisions (a)

and (8) of this section subdivision seven of section eleven hundred fifty

city

of such charter, as amended by local law number seventy-one of the
of New York for the year nineteen hundred sixty-two, is amended to read
as follows:

a. The term "wharf property" shall mean wharves, piers, docks and bulkheads and structures thereon and slips and basins, the land beneath any of the foregoing, and all rights, privileges and easements appurteEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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