New York State Assembly

 
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A01620 Summary:

A01620 Actions:

A01620 Committee Votes:

Committee:LABOR   Chair:Titus      
DATE:06/07/2017AYE/NAY:26/0  Action: Favorable refer to committee Rules        
Titus
Aye
Brabenec
Aye
Abbate
Aye
Crouch
Aye
Perry
Absent
Fitzpatrick
Aye
Ortiz
Aye
Curran
Aye
Colton
Aye
DiPietro
Aye
Benedetto
Aye
Castorina
Aye
Hevesi
Excused
Byrne
Aye
Zebrowski
Aye
Morinello
Aye
Miller
Aye
Bronson
Aye
Rodriguez
Aye
Moya
Aye
DenDekker
Aye
Mayer
Aye
Skoufis
Absent
Rozic
Aye
Simon
Aye
Steck
Aye
Joyner
Aye
Barnwell
Aye
Carroll
Aye

Committee:RULES   Chair:Heastie      
DATE:06/12/2017AYE/NAY:27/0  Action: Favorable         
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Oaks
Aye
Lentol
Excused
Butler
Aye
Farrell
Aye
Crouch
Aye
Gantt
Aye
Finch
Aye
Nolan
Aye
Barclay
Aye
Weinstein
Aye
Raia
Aye
Hooper
Excused
Hawley
Aye
Ortiz
Excused
Pretlow
Aye
Cook
Aye
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Excused
Galef
Aye
Paulin
Aye
Titus
Aye
Peoples-Stokes
Aye

A01620 Floor Votes:

A01620 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1620
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 12, 2017
                                       ___________
 
        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 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
        A. 1620                             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.