NY State Senate Bill S9096

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (12)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 30, 2022	signed chap.349
Jun 23, 2022	delivered to governor
May 25, 2022	returned to senate passed assembly ordered to third reading rules cal.256 substituted for a10078
May 23, 2022	referred to labor delivered to assembly passed senate
May 16, 2022	ordered to third reading cal.1399 committee discharged and committed to rules
May 09, 2022	referred to labor

Votes

S9096 (ACTIVE) - Details

See Assembly Version of this Bill:: A10078
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §93, Work Comp L

S9096 (ACTIVE) - Summary

Provides for the issuance of policies by the state insurance fund to an employer under certain conditions where a balance is due on a prior policy issued by such fund to such employer.

S9096 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S9096

SPONSOR: RAMOS
 
TITLE OF BILL:

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

 
PURPOSE OF THE BILL:

This bill would provide authority to the New York State Insurance Fund
("NYSIF") to issue a policy to a former policyholder with an unpaid
balance due on a prior policy.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend subdivisions (b) and (c) of the Work-
ers' Compensation Law ("WCL") § 93 to permit NYSIF to issue a new policy
to a former NYSIF policyholder whose policy was cancelled with an unpaid
balance due, or to a business entity with similar ownership or control
to the former policyholder, provided certain conditions are met and to

allow payment of the balance on the old policy by installments under the
new policy.

Section 2 of the bill would provide for an immediate effective date.

 
JUSTIFICATION:

NYSIF was established in 1914 as part of the original enactment of the
New York State Workers' Compensation Law. NYSIF's mission is to guaran-
tee the availability of workers' compensation insurance at the lowest
possible cost to New York employers and to provide timely, appropriate
indemnity and medical payments to injured workers, while maintaining a
solvent fund.

NYSIF is a self-supporting insurance carrier that competes with private
insurers in the workers' compensation and disability benefits markets.
Operating income is derived solely from insurance premiums and invest-
ments. NYSIF is the largest provider of workers' compensation insurance
in New York State. Three-quarters of NYSIF' s 150,000 policyholders are
small businesses, and many of these policyholders are minority and
women-owned businesses.

Since inception, NYSIF has fulfilled the dual roles for which it was
created: to compete with other carriers to ensure a fair marketplace and
to be a guaranteed source of coverage for employers who cannot secure
coverage elsewhere. By statute, NYSIF has an obligation to charge premi-
ums as low as possible, consistent with the maintenance of a solvent
fund and reasonable reserves and surplus.

Antiquated statutory provisions that govern NYSIF threaten NYSTF' s
ability to fulfill its mission. The current statutory framework impedes
NYSIF from effectively responding to market events, such as the COVID-19
pandemic, which has created economic hardship for many New York busi-
nesses and hindered their ability to maintain workers' compensation
coverage.


This bill would allow NYSIF to more effectively fulfill its mission of
being a guaranteed source of coverage that is convenient and affordable
to New York businesses.

NYSIF would be given authority under this proposal to issue a policy
under WCL § 93 (b) to a former policyholder that has a balance due on a
prior policy allowing that balance to be paid off by installments as an
obligation under the new policy. Similarly, a business entity related by
ownership or control which may also be denied a new policy until an
unpaid balance on a prior policy is paid under WCL § 93 (c), would also
be eligible for the same treatment as former policyholders under this
bill. This would allow NYSIF to help NYSIF provide coverage for struggl-
ing businesses and securing workers' compensation coverage for their
employees.

The number of employers that apply for a policy that are currently inel-
igible for insurance with NYSIF under WCL § 93 is sizable as the follow-
ing data illustrates:

In the year 2020, 3,775 NYSIF new business applications were immediately
ineligible for coverage because the applicant owed a balance on a prior
policy. If NYSIF were to have written all 3,775 policies, the total
additional estimated premium of those new policies would have been
$75,721,238.

For the first three quarters of 2021 (as of 9/30/21), 4,167 applicants
were immediately ineligible for a new policy with NYSIF due to a balance
owed on a prior policy. This represents 3,259 unique attempts at placing
coverage with a total estimated annual premium on the new policies of
$51,420,047.

 
PRIOR LEGISLATIVE HISTORY:

This is a new proposal.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediate upon being signed into law.

S9096 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9096
 
                             I N  S E N A T E
 
                                May 9, 2022
                                ___________
 
 Introduced  by Sen. RAMOS -- (at request of the State Insurance Fund) --
   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 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13577-01-1
 S. 9096                             2

 FOR  NON-PAYMENT  OF  PREMIUM AS PROVIDED UNDER THIS CHAPTER. IF THE NEW
 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.

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The New York State Senate

senate Bill S9096

Sponsored By

Archive: Last Bill Status - Signed by Governor

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Votes

May 23, 2022 - floor Vote

Floor Vote: May 23, 2022

May 16, 2022 - Rules committee Vote

Rules Committee Vote: May 16, 2022

S9096 (ACTIVE) - Details

S9096 (ACTIVE) - Summary

S9096 (ACTIVE) - Sponsor Memo

S9096 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S9096

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Sponsored By

Jessica Ramos

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

May 23, 2022 - floor Vote

Floor Vote: May 23, 2022

May 16, 2022 - Rules committee Vote

Rules Committee Vote: May 16, 2022

S9096 (ACTIVE) - Details

S9096 (ACTIVE) - Summary

S9096 (ACTIVE) - Sponsor Memo

S9096 (ACTIVE) - Bill Text download pdf

Comments