S T A T E   O F   N E W   Y O R K
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                                  1213

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (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:

  Section 1. Subdivision 1 of section 89 of  the  workers'  compensation
law,  as  amended by chapter 135 of the laws of 1998, is amended to read
as follows:
  1. Employments and employees in the state fund shall be  divided  into
such  groups and classes as shall be equitable based upon differences of
industry or hazard for the purpose of  establishing  premium  rates  for
workers'  compensation insurance, and for such purpose a system of merit
rating [may] SHALL be employed which shall take account of the  peculiar
hazard  of each individual risk AND AN EMPLOYER'S LOSS EXPERIENCE DURING
THE MOST RECENT RATING PLAN PERIOD IRRESPECTIVE  OF  THE  TOTAL  PREMIUM
COST  BILLED TO THE INDIVIDUAL EMPLOYER. Such premiums in the state fund
shall be fixed at the lowest possible rates consistent with the  mainte-
nance of a solvent fund and of reasonable reserves and surplus.
  S 2. Subsection (a) of section 2304 of the insurance law is amended to
read as follows:
  (a)  In  the making of rates, consideration shall be given to past and
prospective loss experience, including the conflagration and catastrophe
hazards, if any, both within and without  this  state,  to  all  factors
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

to past and prospective expenses both country-wide and  those  specially
applicable  to  this state, and in the case of participating insurers to
policyholders' dividends, savings or unabsorbed premium deposits allowed
or  returned to policyholders, members or subscribers.  IN THE MAKING OF
RATES FOR WORKERS' COMPENSATION INSURANCE, IN ADDITION TO THE  FOREGOING
CONSIDERATION  SHALL BE GIVEN TO EACH INDIVIDUAL EMPLOYER'S LOSS EXPERI-
ENCE DURING THE MOST RECENT RATING PLAN  PERIOD  IRRESPECTIVE  OF  TOTAL
PREMIUM COST BILLED TO SUCH INDIVIDUAL EMPLOYER.
  S  3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.