Section 4237. Blanket accident and health insurance

(a) (1) Any policy or
  contract of insurance against death or injury  resulting  from  accident
  which  insures  a group of persons conforming to the requirements of one
  of the subparagraphs (A) through (F) of paragraph three hereof shall  be
  deemed a blanket accident policy.
    (2) Any policy or contract which insures a group of persons conforming
  to  the  requirements of subparagraph (C), (E) or (F) of paragraph three
  hereof against total or partial disability,  excluding  such  disability
  from accident, shall be deemed a blanket health insurance policy.
    (3) Any policy or contract of insurance which combines the coverage of
  blanket  accident  insurance  and  of blanket health insurance on such a
  group of persons shall be deemed a blanket accident and health insurance
  policy:
    (A) Under a policy or contract  issued  to  any  railroad,  steamship,
  motorbus  or  airplane  carrier of passengers, which shall be deemed the
  policyholder, a group  defined  as  all  persons  who  may  become  such
  passengers  may  be insured against death or bodily injury either while,
  or as a result of, being such passengers.
    (B) Under a policy or contract issued to an  employer,  who  shall  be
  deemed  the  policyholder,  covering  any  group of employees defined by
  reference to exceptional hazards incident to such  employment,  insuring
  such  employee  against death or bodily injury resulting while, or from,
  being exposed to such exceptional hazards.
    (C) Under a policy or contract issued to a college, school,  or  other
  institution  of  learning  or  to  the head or principal thereof, who or
  which shall be deemed the policyholder.
    (D) Under a policy or contract issued in the name of
    (i) any county, city, town, village or fire district,
    (ii) any duly organized fire department, or fire company, of any  such
  municipal  corporation  or  fire  district,  whether  or  not  any  such
  corporation has been incorporated under any general or special law,
    (iii) any fire  corporation  incorporated  under  or  subject  to  the
  provisions   of   section   one   thousand   four  hundred  two  of  the
  not-for-profit corporation law, or any general or special law,  if  such
  corporation  is  by law under the general control of, or recognized as a
  fire corporation by, the governing board of a  city,  town,  village  or
  fire   district,   which  municipal  corporation,  fire  district,  fire
  department, fire company or fire corporation, as the case may be,  shall
  be deemed the policyholder, covering all, but not less than twenty-five,
  volunteer members of such department, company or corporation. A district
  corporation  which  has  the  general  powers  of and operates as a fire
  district shall be considered a fire district for the  purposes  of  this
  paragraph.  A  volunteer fireman whose services are offered and accepted
  pursuant to the provisions of section two hundred nine-i of the  general
  municipal  law  shall  be  deemed  a  volunteer  member of any such fire
  department, fire company or fire corporation except for the  purpose  of
  determining  the  minimum  number  of  twenty-five volunteer members for
  which any such policy or contract must provide coverage. Any such policy
  or contract issued to a municipal corporation or a fire  district  shall
  be subject to any limitations on the amount, coverage or benefits as are
  set  forth  in  any  applicable general, special or local law or city or
  village charter.
    (E) Under a policy or contract  issued  to  and  in  the  name  of  an
  incorporated  or  unincorporated  association of persons having a common
  interest or calling, which association shall be deemed the policyholder,
  having not less than fifty members, covering all  the  members  of  such
  association or if part or all of the premium is to be derived from funds
  contributed  by  the insured members and if the opportunity to take such

  insurance is offered to all eligible  members,  then  such  policy  must
  cover  not  less  than  seventy-five  percent of any class or classes of
  members  determined  by  conditions  pertaining  to  membership  in  the
  association.
    (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.
    (b) All benefits under any blanket accident, blanket health or blanket
  accident  and  health  insurance  policy  shall be payable to the person
  insured, or to his designated beneficiary or beneficiaries,  or  to  his
  estate,  except that if the person insured be a minor, such benefits may
  be made payable to  his  parent,  guardian,  or  other  person  actually
  supporting him, or to a person or persons chiefly dependent upon him for
  support and maintenance.
    (c) This section shall not affect the legal liability of policyholders
  for the death of or injury to, any such member of such group.
    (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.
    (e)(1)  For the purposes of any policy or contract of insurance issued
  pursuant to this section, the term  "employees"  may  include  officers,
  managers,  employees  and  retired  employees  of  the  employer, and of
  subsidiary or affiliated corporations of a corporate employer;  and  the
  individual  proprietors,  partners,  employees  and retired employees of
  affiliated individuals and firms  controlled  by  the  insured  employer
  through  stock  ownership,  contract  or  otherwise;  and the individual
  proprietor or partners if the employer is an  individual  proprietorship
  or partnership.
    (2)  For purposes of subparagraph (B) of paragraph three of subsection
  (a) of this section, the term "employees" may also include the directors

  of the employer, and of  subsidiary  or  affiliated  corporations  of  a
  corporate employer.