§ 4714. Transition. For municipal cooperative health benefit plans
that provided medical, surgical or hospital services on or before
January first, nineteen hundred ninety-three pursuant to a municipal
cooperation agreement authorized under article five-G of the general
municipal law, the reserve and surplus requirements in section four
thousand seven hundred six of this article may be phased in over a
period of up to five plan years, provided that:

(a) the amount for the reserve described in paragraph one of
subsection (a) of section four thousand seven hundred six of this
article:

(1) at the end of the first plan year on or after the effective date
of this article shall not be less than twelve percent of expected
incurred claims and expenses thereon for such plan year; and

(2) at the end of each subsequent plan year during the phase-in period
shall not be less than the actual percentage amount in the previous
year, plus an amount equal to the difference between such actual
percentage amount and the percentage amount otherwise required under
section four thousand seven hundred six of this article, divided by the
number of years remaining in the phase-in period;

(b) the amount of surplus:

(1) at the end of the first plan year on or after the effective date
of this article shall not be less than two percent of the annualized
earned premium equivalents during such plan year; and

(2) at the end of each subsequent plan year shall not be less than the
actual percentage amount in the previous plan year, plus an amount equal
to the difference between such actual percentage amount and the
percentage otherwise required under section four thousand seven hundred
six of this article, divided by the number of years remaining in the
phase-in period; and

(c) the superintendent may reduce the aggregate or specific stop-loss
retention amounts or attachment points, referred to in section four
thousand seven hundred seven of this article, during the phase-in period
for any municipal cooperative health benefit plan which consists of
fewer than five municipal corporations or which covers less than two
thousand employees and retirees.