Bill Text: NY A10078 | 2021-2022 | General Assembly | Introduced
Bill Title: Provides for the issuance of policies by the state insurance fund to an employer under certain conditions where a balance is due on a prior policy issued by such fund to such employer.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2022-05-25 - substituted by s9096 [A10078 Detail]
Download: New_York-2021-A10078-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10078 IN ASSEMBLY April 29, 2022 ___________ Introduced by M. of A. FERNANDEZ -- (at request of the State Insurance Fund) -- read once and referred to the Committee on Labor AN ACT to amend the workers' compensation law, in relation to the issu- ance of policies by the state insurance fund where a balance is due on a prior policy issued by such fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions b and c of section 93 of the workers' compen- 2 sation law, as amended by section 24 of part GG of chapter 57 of the 3 laws of 2013, are amended to read as follows: 4 b. An employer, whose policy of insurance has been cancelled by the 5 state insurance fund for non-payment of premium and assessments or with- 6 draws pursuant to section ninety-four of this article, is ineligible to 7 contract for a subsequent policy of insurance with the state insurance 8 fund while the billed premium on the cancelled policy remains uncol- 9 lected. However, the state insurance fund shall have discretion to issue 10 a new policy to such employer by consenting to a payment plan for the 11 employer to pay off the balance on the prior policy provided that (1) 12 any required payroll audit or self-audit has been completed at the time 13 the new policy is issued, (2) the employer's prior payment and policy 14 history meet the state insurance fund's underwriting standards, (3) the 15 employer has demonstrated the ability to pay the deposit premium on the 16 new policy and the first installment of the balance due on the prior 17 cancelled policy prior to issuance of the new policy, and (4) the 18 employer has demonstrated the ability to pay the overdue balance from 19 the prior cancelled policy by installments as determined by the state 20 insurance fund together with payments on the new policy within twelve 21 months from the date the new policy is issued. If an employer is issued 22 a new policy pursuant to this subdivision, such employer shall be 23 required to make the final payment on such overdue balance within twelve 24 months from the date the new policy is issued. If the employer defaults 25 on payment for either the new policy or the balance due from the prior 26 cancelled policy, the employer's new policy is subject to cancellation 27 for non-payment of premium as provided under this chapter. If the new EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13577-01-1A. 10078 2 1 policy issued pursuant to this subdivision is cancelled, the employer 2 shall be ineligible for an additional policy until all amounts due from 3 all prior cancelled policies have been paid. 4 c. The state insurance fund shall not be required to write a policy of 5 insurance for any employer which is owned or controlled or the majority 6 interest of which is owned or controlled, directly or indirectly, by any 7 person who directly or indirectly owns or controls or owned or 8 controlled at the time of cancellation an employer whose former policy 9 of insurance with the state insurance fund was cancelled for non-payment 10 of premium and assessments or withdraws pursuant to section ninety-four 11 of this article or who is or was at the time of cancellation the presi- 12 dent, vice-president, secretary or treasurer of such an employer until 13 the billed premium on the cancelled policy is paid. The state insurance 14 fund shall have discretion to write a policy to such an employer using 15 the same terms as applicable to writing a policy of insurance to a 16 former policyholder that owes a balance on a prior policy as provided 17 under subdivision b of this section. 18 For purposes of this subdivision, "person" shall include individuals, 19 partnerships, corporations, and other associations. 20 § 2. This act shall take effect immediately.