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A08932 Summary:

BILL NOA08932
 
SAME ASSAME AS S07283
 
SPONSORHevesi
 
COSPNSR
 
MLTSPNSR
 
Amd 54, Work Comp L
 
Relates to conditional renewal notices to policyholders; provides that a contract of insurance shall remain in full force and effect subject to the same rates as the expiring contract of insurance rates; makes related provisions.
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A08932 Actions:

BILL NOA08932
 
01/08/2018referred to labor
02/13/2018reported
02/15/2018advanced to third reading cal.679
02/27/2018substituted by s7283
 S07283 AMEND= ROBACH
 01/05/2018REFERRED TO RULES
 01/08/2018ORDERED TO THIRD READING CAL.11
 01/30/2018PASSED SENATE
 01/30/2018DELIVERED TO ASSEMBLY
 01/30/2018referred to labor
 02/27/2018substituted for a8932
 02/27/2018ordered to third reading cal.679
 02/27/2018passed assembly
 02/27/2018returned to senate
 04/06/2018DELIVERED TO GOVERNOR
 04/18/2018SIGNED CHAP.11
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A08932 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8932
 
SPONSOR: Hevesi
  TITLE OF BILL: An act to amend the workers' compensation law, in relation to conditional renewal notices to policyholders   PURPOSE OR GENERAL IDEA OF BILL: To make technical changes to chapter 469 of the laws of 2017 in order to effectuate the intent of the law.   SUMMARY OF PROVISIONS: Section 1 - makes clarifying technical changes to chapter 469 of the laws of 2017. Section 2 - Effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: Under current Insurance Law Section 3426(e), commercial policyholders are entitled to receive a conditional renewal notice 6o to 120 days in advance of the expiration date of their policy if the premium for their renewal policy will increase by more than ten percent. The law requiring such notices protects the customer by affording the opportunity to look for alternative coverage before their current policy expires. Unfortunately, the rules for workers' compensation policies are not the same. A worker's compensation carrier is not required to provide any notice to a policyholder when the renewal premium will increase by more than ten percent. Instead, businesses with worker's compensation policies often receive the bill for their renewal policy just days before the effective date, only to find that the premium has increased substantially. This type of increase in premiums happens most frequently when the renewal is being offered through a different insurer that is affiliated with the insurer that provided the expiring policy. Since the policyholders were not given any advance notice, they have lost the opportunity to look for alternative coverage and must renew their policy at the new, higher rate. This legislation will provide worker's compensation policy holders 30 days advance notice when their workers' compensation premium will increase by more than 10 percent upon renewal and the policy is being renewed by another affiliated insurer that is under common control with the insurer that wrote the expiring policy. This will give them the opportunity to shop for alternative coverage that may be more affordable.   PRIOR LEGISLATIVE HISTORY: A.1620/S.1005 - Chapter 469   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None known.   EFFECTIVE DATE: This act shall take effect on the same date and in the same manner as chapter 469 of the laws of 2017 takes effect.
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A08932 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8932
 
                   IN ASSEMBLY
 
                                     January 8, 2018
                                       ___________
 
        Introduced by M. of A. HEVESI -- read once and referred to the Committee
          on Labor
 
        AN  ACT  to  amend  the workers' compensation law, in relation to condi-
          tional renewal notices to policyholders
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph (b) of subdivision 5 of section 54 of the work-
     2  ers' compensation law, as added by chapter 469 of the laws of  2017,  is
     3  amended to read as follows:
     4    (b)  Conditional renewal for carriers under common control. A contract
     5  of insurance shall remain in full force and effect subject to  the  same
     6  [terms  and  conditions, loss cost multipliers and classification of the
     7  employer with regard to the payment of dividends, pursuant  to  sections
     8  four  thousand one hundred six and four thousand one hundred fourteen of
     9  the insurance law] rates as the expiring contract  of  insurance  rates,
    10  unless written notice is mailed or delivered by the insurance carrier to
    11  the employer, at the address shown on the policy, and to such employer's
    12  authorized agent or broker, indicating the insurance carrier's intention
    13  to  condition renewal upon issuance of a policy that supersedes a policy
    14  previously issued by another insurance carrier under common control that
    15  will result in an increased premium in excess of ten percent  (exclusive
    16  of  any  premium  increase generated as a result of increased loss costs
    17  filed and approved in accordance with  subsection  (e)  of  section  two
    18  thousand  three  hundred  five  of the insurance law, increased exposure
    19  units, or as a result of experience rating, contractor credit adjustment
    20  program, [drug free credit, merit rating,  managed  care  credit,  large
    21  deductible,  retrospective  rating or audit] merit rating, retrospective
    22  rating or audit or removal or reduction of a drug free  credit,  managed
    23  care  credit, or deductible. Such notice shall be mailed or delivered at
    24  least thirty days in advance of the expiration date of the  policy,  and
    25  shall  set  forth  the  amount  of  the premium increase (or, where such
    26  amount cannot reasonably be determined as of  the  time  the  notice  is
    27  provided  due to failure of the policyholder to provide to the insurance
    28  carrier the information necessary to determine the premium, a reasonable
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02654-04-7

        A. 8932                             2
 
     1  estimate of the premium increase based upon the information available to
     2  the insurance carrier at that time). Nothing in this subdivision  [will]
     3  shall  require  the  insurance  carrier  to provide such notice when the
     4  employer,  an  agent  or  broker  authorized by the employer, or another
     5  insurance carrier of the employer has mailed or delivered written notice
     6  that the policy has been replaced or is no longer desired.
     7    § 2. This act shall take effect on the  same  date  and  in  the  same
     8  manner as chapter 469 of the laws of 2017 takes effect.
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