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S01005 Summary:

BILL NOS01005
 
SAME ASSAME AS A01620
 
SPONSORROBACH
 
COSPNSRAKSHAR
 
MLTSPNSR
 
Amd §54, Work Comp L
 
Relates to providing conditional renewal notices to policyholders; at least thirty days notice.
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S01005 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1005
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                     January 6, 2017
                                       ___________
 
        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.  (a)  Cancellation  and  termination  of  insurance  contracts.  No
     5  contract  of  insurance issued by an insurance carrier against liability
     6  arising under this chapter shall be cancelled within the time limited in
     7  such contract for its expiration unless notice is given as  required  by
     8  this  section.   When cancellation is due to non-payment of premiums and
     9  assessments, such cancellation shall not be effective until at least ten
    10  days after a notice of cancellation of such contract, on a  date  speci-
    11  fied  in such notice, shall be filed in the office of the chair and also
    12  served on the employer. When cancellation is due  to  any  reason  other
    13  than  non-payment  of  premiums and assessments, such cancellation shall
    14  not be effective until at least thirty days after a notice of  cancella-
    15  tion  of  such  contract,  on  a date specified in such notice, shall be
    16  filed in the office of the  chair  and  also  served  on  the  employer;
    17  provided,  however,  in  either  case,  that if the employer has secured
    18  insurance with another insurance carrier which becomes  effective  prior
    19  to  the  expiration  of the time stated in such notice, the cancellation
    20  shall be effective as of the date of such  other  coverage.  No  insurer
    21  shall  refuse  to  renew  any  policy insuring against liability arising
    22  under this chapter unless at least thirty days prior to  its  expiration
    23  notice  of  intention  not  to renew has been filed in the office of the
    24  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.
                                                                   LBD02654-01-7

        S. 1005                             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    The  provisions  of  this  subdivision shall not apply with respect to
    15  policies containing coverage pursuant to subsection (j) of section three
    16  thousand four hundred twenty of the  insurance  law  relating  to  every
    17  policy  providing  comprehensive  personal liability insurance on a one,
    18  two, three or four family owner-occupied dwelling.
    19    In the event such cancellation or termination notice is not filed with
    20  the chair within the required time period,  the  chair  shall  impose  a
    21  penalty  in  the  amount  of up to five hundred dollars for each ten-day
    22  period the insurance carrier or state insurance fund failed to file  the
    23  notification. All penalties collected pursuant to this subdivision shall
    24  be deposited in the uninsured employers' fund.
    25    (b)  Conditional renewal. A contract of insurance shall remain in full
    26  force and effect subject to the same terms  and  conditions,  loss  cost
    27  multipliers  and  classification  of  the  employer  with  regard to the
    28  payment of dividends, pursuant to sections four thousand one hundred six
    29  and four thousand one hundred fourteen  of  the  insurance  law,  unless
    30  written  notice  is  mailed or delivered by the insurance carrier to the
    31  employer, at the address shown on the policy,  and  to  such  employer's
    32  authorized agent or broker, indicating the insurance carrier's intention
    33  to  condition renewal upon issuance of a policy that supersedes a policy
    34  previously issued by another insurance carrier under common control that
    35  will result in an increased premium in excess of ten percent  (exclusive
    36  of  any  premium  increase generated as a result of increased loss costs
    37  filed and approved in accordance with  subsection  (e)  of  section  two
    38  thousand  three  hundred  five  of the insurance law, increased exposure
    39  units, or as a result of experience rating, contractor credit adjustment
    40  program, drug free credit, merit  rating,  managed  care  credit,  large
    41  deductible,  retrospective rating or audit). Such notice shall be mailed
    42  or delivered at least thirty days in advance of the expiration  date  of
    43  the  policy, and shall set forth the amount of the premium increase (or,
    44  where such amount cannot reasonably be determined as  of  the  time  the
    45  notice  is provided, a reasonable estimate of the premium increase based
    46  upon the information available to the insurance carrier at  that  time).
    47  Nothing  in  this  subdivision  will  require  the  insurance carrier to
    48  provide such notice when the employer, an agent or broker authorized  by
    49  the employer, or another insurance carrier of the employer has mailed or
    50  delivered  written  notice  that  the  policy has been replaced or is no
    51  longer desired.
    52    § 2. This act shall take effect on the one hundred twentieth day after
    53  it shall have become a law, and shall apply to all  policies  issued  or
    54  renewed on or after such effective date.
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