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State RegulationsNY specificDifficulty 1/5

For purposes of New York's community rating requirements for accident and health policies, a small group is generally defined as an employer group with:

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under the New York Insurance Law and Department of Financial Services small-group rules, a small group is an employer group with 2 to 50 employees. Employers within that range buy their accident and health coverage in New York's small-group market, where community rating applies and open enrollment runs year-round. Groups above the 50-employee ceiling fall outside the small-group definition and the community-rating protections that come with it.

Why the other options are wrong

  • A) The New York small-group range starts at 2 employees, not 1, and runs to 50, not 25.
  • B) Both the floor and the ceiling are wrong here; the New York definition runs from 2 to 50 employees.
  • D) Groups with more than 50 employees exceed the small-group ceiling and are not small groups under New York law.

Memory hook

New York small group: 2 to 50 employees.

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