S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1005
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              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:
 
   Section 1. Subdivision 5 of section 54 of  the  workers'  compensation
 law,  as  amended  by section 23 of part GG of chapter 57 of the laws of
 2013, is amended to read as follows:
   5.  (A)  Cancellation  and  termination  of  insurance  contracts.  No
 contract  of  insurance issued by an insurance carrier against liability
 arising under this chapter shall be cancelled within the time limited in
 such contract for its expiration unless notice is given as  required  by
 this  section.   When cancellation is due to non-payment of premiums and
 assessments, such cancellation shall not be effective until at least ten
 days after a notice of cancellation of such contract, on a  date  speci-
 fied  in such notice, shall be filed in the office of the chair and also
 served on the employer. When cancellation is due  to  any  reason  other
 than  non-payment  of  premiums and assessments, such cancellation shall
 not be effective until at least thirty days after a notice of  cancella-
 tion  of  such  contract,  on  a date specified in such notice, shall be
 filed in the office of the  chair  and  also  served  on  the  employer;
 provided,  however,  in  either  case,  that if the employer has secured
 insurance with another insurance carrier which becomes  effective  prior
 to  the  expiration  of the time stated in such notice, the cancellation
 shall be effective as of the date of such  other  coverage.  No  insurer
 shall  refuse  to  renew  any  policy insuring against liability arising
 under this chapter unless at least thirty days prior to  its  expiration
 notice  of  intention  not  to renew has been filed in the office of the
 chair and also served on the employer.
   Such notice shall be served on the employer by delivering it  to  him,
 her  or  it or by sending it by mail, by certified or registered letter,
 return receipt requested, addressed to the employer at his, her  or  its
 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
 
 nership, then such notice may be so given to any of one of the partners,
 and if the employer be a corporation then the notice may be given to any
 agent or officer of the corporation  upon  whom  legal  process  may  be
 served;  and  further provided that an employer may designate any person
 or entity at any address to receive such  notice  including  the  desig-
 nation  of  one person or entity to receive notice on behalf of multiple
 entities insured under one insurance policy and that service  of  notice
 at  the address so designated upon the person or entity so designated by
 delivery or by mail, by certified or registered letter,  return  receipt
 requested,  shall  satisfy  the  notice  requirement  of  this  section.
 Provided, however, the right to cancellation of a policy of insurance in
 the state fund shall be exercised only for non-payment of  premiums  and
 assessments or as provided in section ninety-four of this chapter.
   The  provisions  of  this  subdivision shall not apply with respect to
 policies containing coverage pursuant to subsection (j) of section three
 thousand four hundred twenty of the  insurance  law  relating  to  every
 policy  providing  comprehensive  personal liability insurance on a one,
 two, three or four family owner-occupied dwelling.
   In the event such cancellation or termination notice is not filed with
 the chair within the required time period,  the  chair  shall  impose  a
 penalty  in  the  amount  of up to five hundred dollars for each ten-day
 period the insurance carrier or state insurance fund failed to file  the
 notification. All penalties collected pursuant to this subdivision shall
 be deposited in the uninsured employers' fund.
   (B)  CONDITIONAL RENEWAL. A CONTRACT OF INSURANCE SHALL REMAIN IN FULL
 FORCE AND EFFECT SUBJECT TO THE SAME TERMS  AND  CONDITIONS,  LOSS  COST
 MULTIPLIERS  AND  CLASSIFICATION  OF  THE  EMPLOYER  WITH  REGARD TO THE
 PAYMENT OF DIVIDENDS, PURSUANT TO SECTIONS FOUR THOUSAND ONE HUNDRED SIX
 AND FOUR THOUSAND ONE HUNDRED FOURTEEN  OF  THE  INSURANCE  LAW,  UNLESS
 WRITTEN  NOTICE  IS  MAILED OR DELIVERED BY THE INSURANCE CARRIER TO THE
 EMPLOYER, AT THE ADDRESS SHOWN ON THE POLICY,  AND  TO  SUCH  EMPLOYER'S
 AUTHORIZED AGENT OR BROKER, INDICATING THE INSURANCE CARRIER'S INTENTION
 TO  CONDITION RENEWAL UPON ISSUANCE OF A POLICY THAT SUPERSEDES A POLICY
 PREVIOUSLY ISSUED BY ANOTHER INSURANCE CARRIER UNDER COMMON CONTROL THAT
 WILL RESULT IN AN INCREASED PREMIUM IN EXCESS OF TEN PERCENT  (EXCLUSIVE
 OF  ANY  PREMIUM  INCREASE GENERATED AS A RESULT OF INCREASED LOSS COSTS
 FILED AND APPROVED IN ACCORDANCE WITH  SUBSECTION  (E)  OF  SECTION  TWO
 THOUSAND  THREE  HUNDRED  FIVE  OF THE INSURANCE LAW, INCREASED EXPOSURE
 UNITS, OR AS A RESULT OF EXPERIENCE RATING, CONTRACTOR CREDIT ADJUSTMENT
 PROGRAM, DRUG FREE CREDIT, MERIT  RATING,  MANAGED  CARE  CREDIT,  LARGE
 DEDUCTIBLE,  RETROSPECTIVE RATING OR AUDIT). SUCH NOTICE SHALL BE MAILED
 OR DELIVERED AT LEAST THIRTY DAYS IN ADVANCE OF THE EXPIRATION  DATE  OF
 THE  POLICY, AND SHALL SET FORTH THE AMOUNT OF THE PREMIUM INCREASE (OR,
 WHERE SUCH AMOUNT CANNOT REASONABLY BE DETERMINED AS  OF  THE  TIME  THE
 NOTICE  IS PROVIDED, A REASONABLE ESTIMATE OF THE PREMIUM INCREASE BASED
 UPON THE INFORMATION AVAILABLE TO THE INSURANCE CARRIER AT  THAT  TIME).
 NOTHING  IN  THIS  SUBDIVISION  WILL  REQUIRE  THE  INSURANCE CARRIER TO
 PROVIDE SUCH NOTICE WHEN THE EMPLOYER, AN AGENT OR BROKER AUTHORIZED  BY
 THE EMPLOYER, OR ANOTHER INSURANCE CARRIER OF THE EMPLOYER HAS MAILED OR
 DELIVERED  WRITTEN  NOTICE  THAT  THE  POLICY HAS BEEN REPLACED OR IS NO
 LONGER DESIRED.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law, and shall apply to all  policies  issued  or
 renewed on or after such effective date.