Bill Text: NY A02673 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides that assessments of self-insurers, the state insurance fund, and all insurance carriers for the workers' compensation special disability fund shall be based on 110%, rather than 150%, of total disbursements from the fund during the preceding calendar year, less the amount of the fund's net assets as of December 31st of such preceding calendar year.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-01-04 - referred to labor [A02673 Detail]
Download: New_York-2011-A02673-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
2673
2011-2012 Regular Sessions
I N A S S E M B L Y
January 19, 2011
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Labor
AN ACT to amend the workers' compensation law, in relation to the
assessment upon self-insurers, the state insurance fund, and all
insurance carriers to fund the special disability fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subparagraph 4 of paragraph (h) of subdivision 8 of section
2 15 of the workers' compensation law, as amended by section 1 of part QQ
3 of chapter 56 of the laws of 2009, is amended to read as follows:
4 (4) As soon as practicable after May first in the year nineteen
5 hundred fifty-eight, and annually thereafter as soon as practicable
6 after January first in each succeeding year, the chair of the board
7 shall assess upon and collect from all self-insurers, except group self-
8 insurers, the state insurance fund, all insurance carriers and group
9 self-insurers, (A) a sum equal to one hundred [fifty] TEN per centum of
10 the total disbursements made from the special disability fund during the
11 preceding calendar year (not including any disbursements made on account
12 of anticipated liabilities or waiver agreements funded by bond proceeds
13 and related earnings), less the amount of the net assets in such fund as
14 of December thirty-first of said preceding calendar year, and (B) a sum
15 sufficient to cover debt service, and associated costs (the "debt
16 service assessment") to be paid during the calendar year by the dormito-
17 ry authority, as calculated in accordance with subparagraph five of this
18 paragraph. Such assessments shall be allocated to (i) self-insurers
19 except group self-insurers and the state insurance fund based upon the
20 proportion that the total compensation payments made by all self-insur-
21 ers except group self-insurers and the state insurance fund bore to the
22 total compensation payments made by all self-insurers except group self-
23 insurers, the state insurance fund, all insurance carriers and group
24 self-insurers, (ii) insurance carriers based upon the proportion that
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05059-01-1
A. 2673 2
1 the total compensation payments made by all insurance carriers bore to
2 the total compensation payments by all self-insurers except group self-
3 insurers, the state insurance fund and all insurance carriers and group
4 self-insurers during the fiscal year which ended within said preceding
5 calendar year, and (iii) group self-insurers based upon the proportion
6 that the total compensation payments made by all group self-insurers
7 bore to the total compensation payments made by all self-insurers, the
8 state insurance fund and all insurance carriers during the fiscal year
9 which ended within said preceding calendar year. Insurance carriers and
10 self-insurers shall be liable for all such assessments regardless of the
11 date on which they came into existence, or whether they have made any
12 claim for reimbursement from the special disability fund. The portion of
13 such sum allocated to self-insurers except group self-insurers and the
14 state insurance fund that shall be collected from each self-insurer
15 except a group self-insurer and the state insurance fund shall be a sum
16 equal to the proportion of the amount which the total compensation
17 payments of each such self-insurer except a group self-insurer or the
18 state insurance fund bore to the total compensation payments made by all
19 self-insurers except group self-insurers and the state insurance fund
20 during the fiscal year which ended within said preceding calendar year.
21 The portion of such sum allocated to insurance carriers that shall be
22 collected from each insurance carrier shall be a sum equal to that
23 proportion of the amount which the total standard premium by each such
24 insurance carrier bore to the total standard premium reported by all
25 insurance carriers during the calendar year which ended within said
26 preceding fiscal year. The portion of such sum allocated to group self-
27 insurers that shall be collected from each group self-insurer shall be a
28 sum equal to that proportion of the amount which the pure premium calcu-
29 lation for each such group self-insurer bore to the total pure premium
30 calculation for all group self-insurers for the calendar year which
31 ended within the preceding state fiscal year. The payments from the debt
32 service assessment, unless otherwise set forth in the special disability
33 fund financing agreement, are hereby pledged therefor and shall be
34 deemed the first monies received on account of assessments in each year.
35 For the purposes of this paragraph, "standard premium" shall mean the
36 premium as defined for the purposes of this assessment by the super-
37 intendent of insurance, in consultation with the chair of the board and
38 the workers' compensation rating board. For purposes of this paragraph
39 "pure premium calculation" means the New York state annual payroll as of
40 December thirty-first of the preceding year by class code for each
41 employer member of a group self-insurer multiplied by the applicable
42 loss cost for each class code as determined by the workers' compensation
43 rating board in effect on December thirty-first of the preceding year,
44 and for a group or individual self-insurer who has ceased to self-insure
45 shall be based on payroll at the time the group or individual self-in-
46 surer ceased to self-insure reduced by a factor reflecting the reduction
47 in the group or individual self-insurer's self-insurance liabilities
48 since ceasing to self-insure. An employer who has ceased to be a self-
49 insurer or a group that ceases to be licensed as a group self-insurer
50 shall continue to be liable for any assessments into said fund on
51 account of any compensation payments made by him or her on his or her
52 account during such fiscal year, and the security fund, created under
53 the provisions of section one hundred seven of this chapter, shall, in
54 the event of the insolvency of any insurance company, be liable for any
55 assessments that would have been made against such company except for
56 its insolvency. No assessment shall be payable from the aggregate trust
A. 2673 3
1 fund, created under the provisions of section twenty-seven of this arti-
2 cle, but such fund shall continue to be liable for all compensation that
3 shall be payable under any award or order of the board, the commuted
4 value of which has been paid into such fund. Such assessments when
5 collected shall be deposited with the commissioner of taxation and
6 finance for the benefit of such fund. Unless otherwise provided, such
7 assessments, shall not constitute an element of loss for the purpose of
8 establishing rates for compensation insurance but shall for the purpose
9 of collection be treated as separate costs by carriers. All insurance
10 carriers and the state insurance fund, shall collect such assessments,
11 from their policyholders through a surcharge based on premiums in
12 accordance with rules set forth by the superintendent of insurance in
13 consultation with the New York workers' compensation rating board and
14 the chair of the board. Such surcharge shall be considered as part of
15 premium for purposes prescribed by law including, but not limited to,
16 computing premium tax, reporting to the superintendent of insurance
17 pursuant to section ninety-nine of this chapter and section three
18 hundred seven of the insurance law, determining the limitation of
19 expenditures for the administration of the state insurance fund pursuant
20 to section eighty-eight of this chapter and the cancellation by an
21 insurance carrier, including the state insurance fund, of a policy for
22 non-payment of premium. The provisions of this paragraph shall not apply
23 with respect to policies containing coverage pursuant to subsection (j)
24 of section three thousand four hundred twenty of the insurance law
25 relating to every policy providing comprehensive personal liability
26 insurance on a one, two, three or four family owner-occupied dwelling.
27 The state insurance fund shall, notify its insureds that such assess-
28 ments, shall be, for the purpose of recoupment, treated as separate
29 costs, respectively for the purpose of premiums billed on or after Octo-
30 ber first, nineteen hundred ninety-four.
31 For the purposes of this paragraph, except as otherwise provided: the
32 term "insurance carrier" shall include only stock corporations, mutual
33 corporations and reciprocal insurers authorized to transact the business
34 of workers' compensation insurance in this state; the term "self-insur-
35 er" shall include any employer or group of employers permitted to pay
36 compensation directly under the provisions of subdivision three, three-a
37 or four of section fifty of this chapter.
38 The board is hereby authorized to issue credits or refunds as neces-
39 sary, in the case of overpayments made to the fund. An insurance carrier
40 that knowingly underreports premiums for the purposes of this section
41 shall be guilty of a class E felony.
42 S 2. This act shall take effect January 1, 2012.
