|SAME AS||SAME AS S07283|
|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.|
|01/08/2018||referred to labor|
|02/15/2018||advanced to third reading cal.679|
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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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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 the7 employer with regard to the payment of dividends, pursuant to sections8 four thousand one hundred six and four thousand one hundred fourteen of9 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, large21 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. LBD02654-04-7A. 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.