S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10078
 
                           I N  A S S E M B L Y
 
                              April 29, 2022
                                ___________
 
 Introduced  by  M. of A. FERNANDEZ -- (at request of the State Insurance
   Fund) -- read once and referred to the Committee on Labor
 
 AN ACT to amend the workers' compensation law, in relation to the  issu-
   ance of policies by the state insurance fund where a balance is due on
   a prior policy issued by such fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions b and c of section 93 of the workers'  compen-
 sation  law,  as  amended  by section 24 of part GG of chapter 57 of the
 laws of 2013, are amended to read as follows:
   b. An employer, whose policy of insurance has been  cancelled  by  the
 state insurance fund for non-payment of premium and assessments or with-
 draws  pursuant to section ninety-four of this article, is ineligible to
 contract for a subsequent policy of insurance with the  state  insurance
 fund  while  the  billed  premium on the cancelled policy remains uncol-
 lected. HOWEVER, THE STATE INSURANCE FUND SHALL HAVE DISCRETION TO ISSUE
 A NEW POLICY TO SUCH EMPLOYER BY CONSENTING TO A PAYMENT  PLAN  FOR  THE
 EMPLOYER  TO  PAY  OFF THE BALANCE ON THE PRIOR POLICY PROVIDED THAT (1)
 ANY REQUIRED PAYROLL AUDIT OR SELF-AUDIT HAS BEEN COMPLETED AT THE  TIME
 THE  NEW  POLICY  IS ISSUED, (2) THE EMPLOYER'S PRIOR PAYMENT AND POLICY
 HISTORY MEET THE STATE INSURANCE FUND'S UNDERWRITING STANDARDS,  (3) THE
 EMPLOYER HAS DEMONSTRATED THE ABILITY TO PAY THE DEPOSIT PREMIUM ON  THE
 NEW  POLICY  AND  THE  FIRST INSTALLMENT OF THE BALANCE DUE ON THE PRIOR
 CANCELLED POLICY PRIOR TO ISSUANCE OF THE  NEW  POLICY,  AND  (4)    THE
 EMPLOYER  HAS  DEMONSTRATED  THE ABILITY TO PAY THE OVERDUE BALANCE FROM
 THE PRIOR CANCELLED POLICY BY INSTALLMENTS AS DETERMINED  BY  THE  STATE
 INSURANCE  FUND  TOGETHER  WITH PAYMENTS ON THE NEW POLICY WITHIN TWELVE
 MONTHS FROM THE DATE THE NEW POLICY IS ISSUED. IF AN EMPLOYER IS  ISSUED
 A  NEW  POLICY  PURSUANT  TO  THIS  SUBDIVISION,  SUCH EMPLOYER SHALL BE
 REQUIRED TO MAKE THE FINAL PAYMENT ON SUCH OVERDUE BALANCE WITHIN TWELVE
 MONTHS FROM THE DATE THE NEW POLICY IS ISSUED.  IF THE EMPLOYER DEFAULTS
 ON PAYMENT FOR EITHER THE NEW POLICY OR THE BALANCE DUE FROM  THE  PRIOR
 CANCELLED  POLICY,  THE EMPLOYER'S NEW POLICY IS SUBJECT TO CANCELLATION
 FOR NON-PAYMENT OF PREMIUM AS PROVIDED UNDER THIS CHAPTER.  IF  THE  NEW
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13577-01-1
 A. 10078                            2

 POLICY  ISSUED  PURSUANT  TO THIS SUBDIVISION IS CANCELLED, THE EMPLOYER
 SHALL BE INELIGIBLE FOR AN ADDITIONAL POLICY UNTIL ALL AMOUNTS DUE  FROM
 ALL PRIOR CANCELLED POLICIES HAVE BEEN PAID.
   c. The state insurance fund shall not be required to write a policy of
 insurance  for any employer which is owned or controlled or the majority
 interest of which is owned or controlled, directly or indirectly, by any
 person  who  directly  or  indirectly  owns  or  controls  or  owned  or
 controlled  at  the time of cancellation an employer whose former policy
 of insurance with the state insurance fund was cancelled for non-payment
 of premium and assessments or withdraws pursuant to section  ninety-four
 of  this article or who is or was at the time of cancellation the presi-
 dent, vice-president, secretary or treasurer of such an  employer  until
 the  billed premium on the cancelled policy is paid. THE STATE INSURANCE
 FUND SHALL HAVE DISCRETION TO WRITE A POLICY TO SUCH AN  EMPLOYER  USING
 THE  SAME  TERMS  AS  APPLICABLE  TO  WRITING A POLICY OF INSURANCE TO A
 FORMER POLICYHOLDER THAT OWES A BALANCE ON A PRIOR  POLICY  AS  PROVIDED
 UNDER SUBDIVISION B OF THIS SECTION.
   For  purposes of this subdivision, "person" shall include individuals,
 partnerships, corporations, and other associations.
   § 2. This act shall take effect immediately.