S T A T E O F N E W Y O R K
________________________________________________________________________
7505
2021-2022 Regular Sessions
I N A S S E M B L Y
May 12, 2021
___________
Introduced by M. of A. JOYNER -- read once and referred to the Committee
on Labor
AN ACT to amend the workers' compensation law and the insurance law, in
relation to specifying methods of calculating deposits and reserves
for the aggregate trust fund and reserves of the state insurance fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 5 of section 27 of the workers' compensation
law, as amended by chapter 6 of the laws of 2007, is amended to read as
follows:
5. All computations made OR DIRECTED by the board shall be upon the
basis of (I) the survivorship annuitants table of mortality, the remar-
riage tables of the Dutch Royal Insurance Institution APPLICABLE TO
CLAIMS FOR ACCIDENTS OCCURRING ON OR BEFORE DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-ONE, AND (II) BEGINNING JANUARY FIRST, TWO THOUSAND
TWENTY-TWO, AND ON JANUARY FIRST OF EACH TENTH YEAR THEREAFTER, THE
UNITED STATES LIFE TABLE FOR THE TOTAL POPULATION PUBLISHED BY THE
DEPARTMENT OF HEALTH AND HUMAN SERVICES AND THE REMARRIAGE TABLE
PUBLISHED BY THE UNITED STATES RAILROAD RETIREMENT BOARD APPLICABLE TO
CLAIMS FOR ACCIDENTS OCCURRING ON OR AFTER JANUARY FIRST OF THE YEAR
FOLLOWING THE ADOPTION OF ANY REVISION OF SUCH TABLES AS PROVIDED IN
THIS SUBDIVISION and interest at three and one-half per centum per annum
on claims based on accidents occurring up to and including June thirti-
eth, nineteen hundred thirty-nine, at three per centum per annum on
claims based on accidents occurring from July first, nineteen hundred
thirty-nine up to and including August thirty-first, nineteen hundred
eighty-three, at six per centum per annum on claims based on accidents
occurring from September first, nineteen hundred eighty-three up to and
including December thirty-first, two thousand and at the industry stand-
ard rate on claims based on accidents occurring thereafter, except (a)
that computations of present values of death benefits required to be
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10882-01-1
A. 7505 2
paid into the aggregate trust fund by an insurance carrier which is a
stock corporation or a mutual association shall be based, in the case of
a dependent parent, grandparent, blind or physically disabled child or
spouse, upon said table of mortality disregarding possible change in or
termination of dependency, with interest at three and one-half per
centum per annum on claims based on accidents occurring up to and
including June thirtieth, nineteen hundred thirty-nine, at three per
centum per annum on claims based on accidents occurring from July first,
nineteen hundred thirty-nine up to and including August thirty-first,
nineteen hundred eighty-three, at six per centum per annum on claims
based on accidents occurring from September first, nineteen hundred
eighty-three up to and including December thirty-first, two thousand and
at the industry standard rate on claims based on accidents occurring
thereafter and (b) that computations of present values of permanent
partial disability benefits awarded for a definite number of weeks shall
be on the basis of annuities certain with interest at three and one-half
per centum per annum on claims based on accidents occurring up to and
including June thirtieth, nineteen hundred thirty-nine, at three per
centum per annum on claims based on accidents occurring from July first,
nineteen hundred thirty-nine up to and including August thirty-first,
nineteen hundred eighty-three, at six per centum per annum on claims
based on accidents occurring from September first, nineteen hundred
eighty-three up to and including December thirty-first, two thousand and
at the industry standard rate on claims based on accidents occurring
thereafter.
§ 2. The closing paragraph of subdivision 7 of section 27 of the work-
ers' compensation law, as amended by chapter 6 of the laws of 2007 and
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended to read as follows:
Such additional payments shall be required until the surplus of the
fund equals or exceeds one per centum of the total outstanding loss
reserves as shown by three successive annual reports of the fund to the
superintendent of financial services and such additional payment shall
be required as a payment upon each award based on an accident occurring
prior to July first next succeeding the third such annual report, but
not as a payment upon any award based on an accident occurring on or
after said July first; provided, however, that if and when the surplus
of the fund as shown by any annual report thereafter shall be less than
one per centum of the total outstanding loss reserves, then the addi-
tional payments as provided in paragraphs (a), (b), (c) and (d) of this
subdivision shall be resumed and shall be payable upon any award based
on an accident occurring on or after July first next succeeding the
close of the year for which such annual report is made. Thereafter, the
suspension or resumption of additional payments as required by this
subdivision shall be governed by the foregoing provisions. Such loss
reserves shall be computed based upon the tables specified in subdivi-
sion five of this section APPLICABLE TO THE CALCULATION OF THE DEPOSIT
FOR THE CLAIM ON WHICH SUCH DEPOSIT IS BASED and interest at a standard
to be determined by the superintendent of financial services by regu-
lation.
§ 3. Section 86 of the workers' compensation law, as amended by chap-
ter 7 of the laws of 1989 and as further amended by section 104 of part
A of chapter 62 of the laws of 2011, is amended to read as follows:
§ 86. Catastrophe surplus and reserves for workers' compensation. Ten
per centum of the premiums collected from employers insured in the fund
for workers' compensation shall be set aside for the creation of a
A. 7505 3
surplus until such surplus shall amount to the sum of one hundred thou-
sand dollars, and thereafter five per centum of such premiums, until
such time as in the judgment of the commissioners such surplus shall be
sufficiently large to cover the catastrophe hazard. Thereafter the
contribution to such surplus may be reduced or discontinued conditional
upon constant maintenance of a sufficient surplus to cover the catastro-
phe hazard. Reserves shall be set up and maintained adequate to meet
anticipated losses and carry all claims and policies to maturity, which
reserves shall be computed [to reflect the present values, at five
percent interest per annum, of the determined and estimated unpaid loss-
es, and other requirements computed in accordance with such rules as
shall be approved by the superintendent of financial services] PURSUANT
TO SUBSECTIONS (D) AND (E) OF SECTION FOUR THOUSAND ONE HUNDRED SEVEN-
TEEN OF THE INSURANCE LAW.
§ 4. Subsection (c) of section 1108 of the insurance law, as amended
by section 38 of part SS of chapter 54 of the laws of 2016, is amended
to read as follows:
(c) The state insurance fund of this state, except as to the
provisions of subsection (d) of section two thousand three hundred thir-
ty-nine, section three thousand one hundred ten, subsection (a), para-
graph one of subsection (b), paragraph three of subsection (c) and
subsection (d) of section three thousand two hundred one, sections three
thousand two hundred two, three thousand two hundred four, subsections
(a) through (d) of section three thousand two hundred twenty-one,
SUBSECTIONS (D) AND (E) OF SECTION FOUR THOUSAND ONE HUNDRED SEVENTEEN,
subsections (b) and (c) of section four thousand two hundred twenty-
four, section four thousand two hundred twenty-six and subsections (a)
and (b), (g) through (j), and (n) of section four thousand two hundred
thirty-five of this chapter and except as otherwise specifically
provided by the laws of this state.
§ 5. Subsection (e) of section 4117 of the insurance law, as amended
by chapter 11 of the laws of 1986, is amended to read as follows:
(e) Whenever in the judgment of the superintendent, the loss and loss
expense reserves of any property/casualty insurance company doing busi-
ness in this state OR OF THE STATE INSURANCE FUND OF THIS STATE calcu-
lated in accordance with the foregoing provisions are inadequate or
excessive, [he] THE SUPERINTENDENT may prescribe any other basis [which]
THAT will produce adequate and reasonable reserves.
§ 6. This act shall take effect January 1, 2022.