(a) Pursuant to the authority granted in, among other things, Insurance Law section 4235(n), the superintendent previously determined that family leave benefits provided by issuers shall be subject to a risk adjustment mechanism for calendar year 2018. Additionally, pursuant to section 363.5(b) of this Title, the superintendent in consultation with the chair of the Workers’ Compensation Board may determine whether the family leave benefits coverage provided by issuers in subsequent years will be subject to a risk adjustment mechanism.

(b) It is necessary for the implementation of the risk adjustment mechanism established by section 363.5 of this Title that a fund be established to hold the risk adjustment pools required to receive the payments and make the disbursements called for by that section.