Requires the consideration of each employer's loss experience for the most recent rating plan period for purpose of setting rates for workers' compensation insurance; requires consideration of such information by commercial insurers also.
STATE OF NEW YORK
________________________________________________________________________
1213
2009-2010 Regular Sessions
IN ASSEMBLY(Prefiled)
January 7, 2009
___________
Introduced by M. of A. DESTITO, MAGEE, CHRISTENSEN, KOON, GUNTHER --
Multi-Sponsored by -- M. of A. ABBATE, CLARK, COLTON, GLICK, GOTT-
FRIED, HOOPER, JOHN, PERRY, PHEFFER, WRIGHT -- read once and referred
to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to requiring
consideration of employer's loss experience in the setting of rates
for workers' compensation insurance and to amend the insurance law, in
relation to information required to be filed in support of workers'
compensation insurance rates
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 89 of the workers' compensation
2 law, as amended by chapter 135 of the laws of 1998, is amended to read
3 as follows:
4 1. Employments and employees in the state fund shall be divided into
5 such groups and classes as shall be equitable based upon differences of
6 industry or hazard for the purpose of establishing premium rates for
7 workers' compensation insurance, and for such purpose a system of merit
8 rating [may] shall be employed which shall take account of the peculiar
9 hazard of each individual risk and an employer's loss experience during
10 the most recent rating plan period irrespective of the total premium
11 cost billed to the individual employer. Such premiums in the state fund
12 shall be fixed at the lowest possible rates consistent with the mainte-
13 nance of a solvent fund and of reasonable reserves and surplus.
14 § 2. Subsection (a) of section 2304 of the insurance law is amended to
15 read as follows:
16 (a) In the making of rates, consideration shall be given to past and
17 prospective loss experience, including the conflagration and catastrophe
18 hazards, if any, both within and without this state, to all factors
19 reasonably attributable to the class of risks, to a reasonable profit,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03566-01-9
A. 1213 2
1 to past and prospective expenses both country-wide and those specially
2 applicable to this state, and in the case of participating insurers to
3 policyholders' dividends, savings or unabsorbed premium deposits allowed
4 or returned to policyholders, members or subscribers. In the making of
5 rates for workers' compensation insurance, in addition to the foregoing
6 consideration shall be given to each individual employer's loss experi-
7 ence during the most recent rating plan period irrespective of total
8 premium cost billed to such individual employer.
9 § 3. This act shall take effect on the first of January next succeed-
10 ing the date on which it shall have become a law.
