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S07283 Summary:

S07283 Actions:

S07283 Committee Votes:

S07283 Floor Votes:

S07283 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7283
 
                    IN SENATE
 
                                     January 5, 2018
                                       ___________
 
        Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        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  the
     7  employer  with  regard to the payment of dividends, pursuant to sections
     8  four thousand one hundred six and four thousand one hundred fourteen  of
     9  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, large
    21  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.
                                                                   LBD02654-04-7
        S. 7283                             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.