N.Y. Comp. Codes R. & Regs. tit. 11 § 153.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 153.5 - Premium collection and payment

(a) The premium for coverage:

(1) under a group policy shall be paid by each group member, and shall not be paid by the group or group master policyholder from the group's general funds or other source; and

(2) under a quasi-group policy shall be paid by each participant, and shall not be paid by the sponsoring entity from general funds or other source.

(b) If authorized to act on the insurer's behalf:

(1) the group or master policyholder may collect premiums from group members and remit such premiums to the insurer; and

(2) the sponsoring entity may collect premiums from quasi-group participants and remit such premiums to the insurer.

(c) Failure to remit premiums when due to the insurer shall not constitute nonpayment of premium:

(1) by the group member, if the group or master policyholder received such member's premium in a timely manner and the insurer has authorized the group or group master policyholder to collect premiums from group members for the insurer's account; and

(2) by the participant, if the sponsoring entity has received such participant's premium in a timely manner and the insurer has authorized the sponsoring entity to collect premiums from participants for the insurer's account.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 153.5