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SB7268 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         7268

                                   I N  S E N A T E

                                      May 8, 2014
                                      ___________

       Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
         printed to be committed to the Committee on Labor

       AN ACT to amend the workers' compensation law, in relation to  providing
         conditional 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. Subdivision 5 of section 54 of  the  workers'  compensation
    2  law,  as  amended  by section 23 of part GG of chapter 57 of the laws of
    3  2013, is amended to read as follows:
    4    5. Cancellation, CONDITIONAL  RENEWAL  and  termination  of  insurance
    5  contracts.  No  contract  of  insurance  issued  by an insurance carrier
    6  against liability arising under this chapter shall be  cancelled  within
    7  the  time  limited  in such contract for its expiration unless notice is
    8  given as required by this section.  When cancellation is due to non-pay-
    9  ment of premiums and assessments, such cancellation shall not be  effec-
   10  tive  until  at  least  ten  days after a notice of cancellation of such
   11  contract, on a date specified in such notice,  shall  be  filed  in  the
   12  office  of  the chair and also served on the employer. When cancellation
   13  is due to any reason other than non-payment of premiums and assessments,
   14  such cancellation shall not be effective  until  at  least  thirty  days
   15  after  a notice of cancellation of such contract, on a date specified in
   16  such notice, shall be filed in the office of the chair and  also  served
   17  on the employer; provided, however, in either case, that if the employer
   18  has  secured  insurance  with  another  insurance  carrier which becomes
   19  effective prior to the expiration of the time stated in such notice, the
   20  cancellation shall be effective as of the date of such  other  coverage.
   21  No  insurer  shall refuse to renew any policy insuring against liability
   22  arising under this chapter unless at least  thirty  days  prior  to  its
   23  expiration notice of intention not to renew has been filed in the office
   24  of the chair and also served on the employer.
   25    Such  notice  shall be served on the employer by delivering it to him,
   26  her or it or by sending it by mail, by certified or  registered  letter,
   27  return  receipt  requested, addressed to the employer at his, her or its
   28  last known place of business; provided that, if the employer be a  part-

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14461-01-4
       S. 7268                             2

    1  nership, then such notice may be so given to any of one of the partners,
    2  and if the employer be a corporation then the notice may be given to any
    3  agent  or  officer  of  the  corporation  upon whom legal process may be
    4  served;  and  further provided that an employer may designate any person
    5  or entity at any address to receive such  notice  including  the  desig-
    6  nation  of  one person or entity to receive notice on behalf of multiple
    7  entities insured under one insurance policy and that service  of  notice
    8  at  the address so designated upon the person or entity so designated by
    9  delivery or by mail, by certified or registered letter,  return  receipt
   10  requested,  shall  satisfy  the  notice  requirement  of  this  section.
   11  Provided, however, the right to cancellation of a policy of insurance in
   12  the state fund shall be exercised only for non-payment of  premiums  and
   13  assessments or as provided in section ninety-four of this chapter.
   14    A  CONTRACT OF INSURANCE SHALL REMAIN IN FULL FORCE AND EFFECT SUBJECT
   15  TO THE SAME TERMS AND CONDITIONS, LOSS COST MULTIPLIERS AND  CLASSIFICA-
   16  TION  OF  THE EMPLOYER WITH REGARD TO THE PAYMENT OF DIVIDENDS, PURSUANT
   17  TO SECTIONS FOUR THOUSAND ONE HUNDRED SIX AND FOUR THOUSAND ONE  HUNDRED
   18  FOURTEEN OF THE INSURANCE LAW, UNLESS WRITTEN NOTICE IS MAILED OR DELIV-
   19  ERED BY THE CARRIER TO THE EMPLOYER, AT THE ADDRESS SHOWN ON THE POLICY,
   20  AND TO SUCH EMPLOYER'S AUTHORIZED AGENT OR BROKER, INDICATING THE CARRI-
   21  ER'S INTENTION TO CONDITION RENEWAL UPON INCREASED DEDUCTIBLE, CHANGE IN
   22  CLASSIFICATION  WITH  REGARD TO THE PAYMENT OF DIVIDENDS THAT MAY RESULT
   23  IN A REDUCTION IN DIVIDENDS PAID, OR UPON INCREASED PREMIUMS  IN  EXCESS
   24  OF  TEN PERCENT (EXCLUSIVE OF ANY PREMIUM INCREASE GENERATED AS A RESULT
   25  OF INCREASED LOSS COSTS FILED AND APPROVED IN ACCORDANCE WITH SUBSECTION
   26  (E) OF SECTION TWO THOUSAND THREE HUNDRED FIVE  OF  THE  INSURANCE  LAW,
   27  INCREASED  EXPOSURE  UNITS,  OR  AS  A RESULT OF EXPERIENCE RATING, LOSS
   28  RATING, RETROSPECTIVE RATING OR AUDIT). SUCH NOTICE SHALL BE  MAILED  OR
   29  DELIVERED  AT LEAST SIXTY, BUT NOT MORE THAN ONE HUNDRED TWENTY, DAYS IN
   30  ADVANCE OF THE EXPIRATION DATE OF THE  POLICY,  AND  SHALL  CONTAIN  THE
   31  SPECIFIC REASON OR REASONS FOR CONDITIONAL RENEWAL, SET FORTH THE AMOUNT
   32  OF  ANY  PREMIUM  INCREASE  (OR,  WHERE SUCH AMOUNT CANNOT REASONABLY BE
   33  DETERMINED AS OF THE TIME THE NOTICE IS PROVIDED, A REASONABLE  ESTIMATE
   34  OF  THE  PREMIUM  INCREASED  BASED UPON THE INFORMATION AVAILABLE TO THE
   35  INSURANCE CARRIER AT THAT TIME), A REASONABLE ESTIMATE OF THE  POTENTIAL
   36  REDUCTION IN DIVIDENDS ATTRIBUTABLE TO THE CHANGE IN CLASSIFICATION, AND
   37  THE AMOUNT OF THE INCREASED DEDUCTIBLE. NOTHING IN THIS SUBDIVISION WILL
   38  REQUIRE  THE INSURANCE CARRIER TO PROVIDE SUCH NOTICE WHEN THE EMPLOYER,
   39  AN AGENT OR BROKER AUTHORIZED BY  THE  EMPLOYER,  OR  ANOTHER  INSURANCE
   40  CARRIER  OF THE EMPLOYER HAS MAILED OR DELIVERED WRITTEN NOTICE THAT THE
   41  POLICY HAS BEEN REPLACED OR IS NO LONGER DESIRED.
   42    EVERY NOTICE MAILED OR DELIVERED BY AN INSURANCE CARRIER  PURSUANT  TO
   43  THIS  SUBDIVISION  SHALL ADVISE THE EMPLOYER AND SUCH EMPLOYER'S AUTHOR-
   44  IZED AGENT OR BROKER OF THE AVAILABILITY OF LOSS INFORMATION  CONSISTENT
   45  WITH  THIS  SUBDIVISION  UPON  WRITTEN  REQUEST  BY THE EMPLOYER OR SUCH
   46  EMPLOYER'S AUTHORIZED AGENT OR BROKER, THE INSURANCE CARRIER SHALL  MAIL
   47  OR  DELIVER  LOSS  INFORMATION  COVERING THE PERIOD OF TIME COVERAGE HAS
   48  BEEN PROVIDED BY THE INSURANCE CARRIER, WITHIN TEN DAYS OF SUCH REQUEST.
   49  SUCH INFORMATION SHALL INCLUDE INFORMATION ON CLOSED AND OPEN CLAIMS AND
   50  ANY NOTICES OF OCCURRENCES, INCLUDING DATES AND DESCRIPTIONS  OF  OCCUR-
   51  RENCES AND AMOUNTS OF ANY PAYMENTS OR AMOUNTS HELD IN RESERVE FOR FUTURE
   52  PAYMENTS.
   53    The  provisions  of  this  subdivision shall not apply with respect to
   54  policies containing coverage pursuant to subsection (j) of section three
   55  thousand four hundred twenty of the  insurance  law  relating  to  every
       S. 7268                             3

    1  policy  providing  comprehensive  personal liability insurance on a one,
    2  two, three or four family owner-occupied dwelling.
    3    In the event such cancellation or termination notice is not filed with
    4  the  chair  within  the  required  time period, the chair shall impose a
    5  penalty in the amount of up to five hundred  dollars  for  each  ten-day
    6  period  the insurance carrier or state insurance fund failed to file the
    7  notification. All penalties collected pursuant to this subdivision shall
    8  be deposited in the uninsured employers' fund.
    9    S 2. This act shall take effect on the one hundred twentieth day after
   10  it shall have become a law, and shall apply to all  policies  issued  or
   11  renewed on or after such effective date.
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