Section 1120. Child health insurance plan

(a) An authorized insurer subject
  to  the  provisions  of  this chapter and organized to write the kind of
  health insurance specified in  paragraph  three  of  subsection  (a)  of
  section  one  thousand  one  hundred  thirteen  of  this  article, and a
  corporation or health maintenance organization  authorized  pursuant  to
  article forty-three of this chapter or a health maintenance organization
  certified  pursuant  to article forty-four of the public health law, may
  be authorized by the superintendent  to  issue  contracts  or  otherwise
  enter  into  arrangements with approved organizations for the purpose of
  providing child health insurance plan  policies  for  eligible  children
  pursuant  to  title I-A of article twenty-five of the public health law.
  Such contracts or arrangements shall satisfy the criteria set  forth  in
  subsection  (b)  of  this  section and the superintendent shall make the
  determinations set forth in subsection (e) of this section.
    (b) The superintendent may authorize such  contracts  or  arrangements
  pursuant to the following criteria:
    (1) the provisions are not misleading or confusing;
    (2)  the  provisions are consistent with the needs of the child health
  insurance plan; and
    (3) the materials describing the contract  or  arrangement  fully  and
  clearly   state  the  benefits  and  limitations  of  such  contract  or
  arrangement.
    (c) The duration of such contracts or arrangements and the  extent  of
  exposure  thereunder  by  insurers,  article forty-three corporations or
  health  maintenance   organizations   shall   be   determined   by   the
  superintendent.
    (d)  Notwithstanding  any  provisions  of  the  insurance  law  to the
  contrary, the superintendent may waive, modify or suspend any provisions
  of the insurance law or insurance department regulations  as  applicable
  to  the insurers, article forty-three corporations or health maintenance
  organizations which issue coverage pursuant to  this  section,  provided
  such  waiver,  modification  or  suspension is based on the criteria set
  forth in subsection (e) of this section.
    (e) The superintendent may take the actions set forth  in  subsections
  (a) and (d) of this section upon the superintendent's judgement that:
    (1)  the  contract  or  arrangement  is  a  reasonable and appropriate
  approach to expand the availability of health care coverage to children;
    (2) the sources  of  funding  for  the  contract  or  arrangement  are
  reasonably  related  to  the benefits provided and sufficient to support
  the contract arrangement;
    * (3) any waiver, modification or suspension of the provisions of  the
  insurance  law or insurance regulations is essential to the operation of
  the child health insurance plan  and  to  the  rational  development  of
  programs to provide covered services to children; and
    * NB Effective until July 1, 2011
    * (3)  any  waiver,  modification  or  suspension of provisions of the
  insurance law or insurance regulations is essential to the operation  of
  the  child  health  insurance  plan  and  to the rational development of
  programs to provide primary and  preventive  health  care  coverage  and
  inpatient health care services coverage to children; and
    * NB Effective July 1, 2011
    (4)  any  waiver,  modification  or  suspension  of  provisions of the
  insurance law or insurance department regulations will  not  impair  the
  ability  of  the  insurer,  article  forty-three  corporation  or health
  maintenance  organization  to  satisfy  its  existing  and   anticipated
  contracts  and  other  obligations,  including  such  standards  as  the
  superintendent shall prescribe concerning adequate capital and financial
  requirements.

    (f) Each application used by an authorized  insurer  for  purposes  of
  enrolling  eligible  children  into  the  child  health  insurance  plan
  pursuant to this section and section twenty-five hundred eleven  of  the
  public  health  law  shall  include  the  notice  required  pursuant  to
  subsection (d) of section four hundred three of this chapter.