Section 1109. Limited exemption for health maintenance organizations

(a) An
  organization  complying with the provisions of article forty-four of the
  public health law may operate without being licensed under this  chapter
  and without being subject to any provisions of this chapter, except: (1)
  to  the extent that such organization must comply with the provisions of
  this chapter by virtue of  such  article,  and  (2)  the  provisions  of
  sections  three  hundred  eight,  three  hundred thirteen, three hundred
  thirty-two, one thousand three hundred one, one thousand  three  hundred
  two,  one  thousand three hundred seven, two thousand one hundred three,
  two thousand one hundred twelve, two thousand one hundred fourteen,  two
  thousand  one  hundred  fifteen, two thousand one hundred seventeen, two
  thousand one hundred twenty-three, two thousand six hundred eight-a, two
  thousand six hundred twelve, three thousand two  hundred  twenty-four-a,
  four   thousand   three  hundred  eight,  four  thousand  three  hundred
  seventeen, four thousand three hundred  eighteen,  four  thousand  three
  hundred  twenty,  four  thousand three hundred twenty-one, four thousand
  three hundred twenty-two and four thousand three hundred twenty-three of
  this chapter.
    (b) An organization which provides health care services for a periodic
  fee paid in advance but which does not comply  with  the  provisions  of
  article  forty-four  of  the  public  health  law  shall be deemed to be
  engaged in the business of insurance and may not operate  without  being
  licensed under this chapter.
    (c)  An organization referred to in subsection (a) or (b) hereof shall
  be subject to article seventy-four of this chapter.
    (d)  A  health  maintenance  organization  may  make  any   investment
  permitted for a health service corporation organized pursuant to article
  forty-three  of  this  chapter  provided  that the superintendent, after
  consultation with the commissioner of health, may modify such investment
  requirements, if such modification would permit the organization to more
  effectively implement its program without incurring undue  risk  to  its
  subscribers.
    (e)  The superintendent may promulgate regulations in effectuating the
  purposes and provisions of this chapter and article  forty-four  of  the
  public  health  law  and  may  modify  requirements  applicable  to  the
  contracts between a health maintenance organization and its subscribers,
  subject to such limitations as the superintendent shall  deem  necessary
  or proper to insure the performance of such contracts.