NY State Senate Bill 2023-S2681

Archive: Last Bill Status - In Senate Committee Insurance Committee

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 24, 2023	referred to insurance

co-Sponsors

2023-S2681 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3443, Ins L
Versions Introduced in 2021-2022 Legislative Session:: S9361

2023-S2681 (ACTIVE) - Summary

Establishes standards for policies issued by a group self-insurer for municipal corporations, public corporations, county self-insurance plans, boards of cooperative educational services and consortia established by boards of cooperative educational services.

2023-S2681 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2681

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to deductibles offered by
group self-insurers

 
PURPOSE OF THE BILL:

This legislation would establish the specific conditions upon which a
public group self-insurer, with the approval of the Superintendent, can
offer a deductible option to public entities for their workers' compen-
sation coverage as a means to lower their costs and better manage their
risk.

 
SUMMARY OF SPECIFIC PROVISIONS:

§ 1 amends section 3443 of the insurance law to allow for a group self-
insurer to offer public entities workers' compensation coverage consist-
ent with the following standards:

- The policy must be consistent with section 3443 of the insurance law

- The group self-insurer must be fully-funded under the requirements of
the workers' compensation law

- No proof of financial ability or deposit of securities or cash need to
be made by the group self-insurer or the covered entity

- The maximum new contribution allowed for a deductible program offered
by the group self-insurer may not exceed 10% of the group self-insurer's
total contributions for the prior year

- If the group self-insurer is at any point determined to not be fully
funded then they may not permit any new member to elect the deductible
option until the group self-insurer becomes fully funded

§ 2 establishes an immediate effective date.

 
JUSTIFICATION:

Workers' compensation coverage is a substantial expense for local
governments. Many local governments obtain that coverage through public
group self-insurers. Insurance Law S 3443 specifically permits insurers
and public group self-insurers to offer a deductible option for their
workers' compensation coverage with the approval of the Superintendent.
This legislation tailors the standards upon which the Superintendent can
grant such approval to the specific situation of a public group self-in-
surer. Private insurers are required, before offering coverage on a
first-dollar basis or with a deductible, to post securities with the
Chair of the Workers' Compensation Board. Workers' Compensation Law §
50(4) exempts public group self-insurers from that requirement, but
neither the Workers' Compensation Law nor the Insurance Law provides a
comparable exemption for deductible coverage. This legislation is neces-
sary to allow a public group self-insurer to offer a deductible option
to its local government members on the same terms as it can offer first-
dollar coverage.

This legislation will reduce the cost of workers' compensation coverage
for local governments without affecting the benefits provided to injured
workers while ensuring that those benefits will be paid by requiring
that public group self insurers remain fully funded for their deductible
workers compensation coverage in accordance generally applicable actuar-
ial standards and otherwise adhere to the standards already established
for private insurers offering deductible programs.

 
LEGISLATIVE HISTORY:

S9361 - 2021/22

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

This legislation would provide municipal governments a cost-savings
benefit and provide no additional cost to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S2681 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2681
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to deductibles offered by
   group self-insurers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The opening paragraph of section 3443 of the insurance law,
 as  added  by  chapter  924  of  the laws of 1990, is amended to read as
 follows:
   (1) An insurer issuing a workers' compensation and employers'  liabil-
 ity  insurance  policy,  and  a  group self-insurer for municipal corpo-
 rations [as defined in] ESTABLISHED PURSUANT TO subdivision  three-a  of
 section  fifty  of  the workers' compensation law, may offer, as part of
 the policy or by endorsement, deductibles optional to  the  policyholder
 for benefits payable under the policy, subject to approval by the super-
 intendent  and  subject  to underwriting by the insurer, consistent with
 the following standards or factors:
   § 2. Subsections (a) through (g) of section 3443 of the insurance  law
 are  redesignated  paragraphs  (a)  through  (g) of subsection 1 of such
 section and a new subsection 2 is added to read as follows:
   (2) A POLICY ISSUED BY A GROUP SELF-INSURER FOR MUNICIPAL CORPORATIONS
 UNDER THIS SECTION MAY BE OFFERED TO MUNICIPAL CORPORATIONS  AS  DEFINED
 IN  SUBDIVISION  THREE-A  OF  SECTION FIFTY OF THE WORKERS' COMPENSATION
 LAW, PUBLIC CORPORATIONS  AS  DEFINED  IN  SUBDIVISION  ONE  OF  SECTION
 SIXTY-SIX  OF  THE GENERAL CONSTRUCTION LAW, COUNTY SELF-INSURANCE PLANS
 ESTABLISHED UNDER ARTICLE FIVE OF THE WORKERS' COMPENSATION LAW,  BOARDS
 OF  COOPERATIVE EDUCATIONAL SERVICES AND CONSORTIA ESTABLISHED BY BOARDS
 OF COOPERATIVE EDUCATIONAL SERVICES, CONSISTENT WITH THE FOLLOWING:
   (A) THE POLICY MUST BE CONSISTENT WITH THE STANDARDS AND  FACTORS  SET
 FORTH IN SUBSECTION ONE OF THIS SECTION;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07350-01-3
 S. 2681                             2

 
   (B)  THE  GROUP  SELF-INSURER  MUST  BE  "FULLY FUNDED", AS DEFINED IN
 SUBPARAGRAPH (B) OF PARAGRAPH TWO  OF  SUBDIVISION  THREE-A  OF  SECTION
 FIFTY OF THE WORKERS' COMPENSATION LAW;
   (C)  NO  PROOF  OF  FINANCIAL ABILITY OR DEPOSIT OF SECURITIES OR CASH
 NEED BE MADE BY THE GROUP SELF-INSURER OR THE COVERED ENTITY;
   (D) THE MAXIMUM NEW CONTRIBUTION  ALLOWED  FOR  A  DEDUCTIBLE  PROGRAM
 OFFERED  BY  THE  GROUP  SELF-INSURER  MAY NOT EXCEED TEN PERCENT OF THE
 GROUP SELF-INSURER'S TOTAL CONTRIBUTIONS FOR THE PRIOR YEAR;
   (E) NO MORE THAN TEN NEW DEDUCTIBLE MEMBERS MAY BE ADDED  IN  ANY  ONE
 CONTRIBUTION YEAR; AND
   (F)  IF  THE  GROUP  SELF-INSURER CEASES TO BE FULLY FUNDED, THE GROUP
 SELF-INSURER MAY NOT PERMIT ANY  NEW  MEMBER  TO  ELECT  THE  DEDUCTIBLE
 OPTION UNTIL THE GROUP SELF-INSURER BECOMES FULLY FUNDED.
   § 3. This act shall take effect immediately.

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Senate Bill S2681

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Archive: Last Bill Status - In Senate Committee Insurance Committee

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co-Sponsors

2023-S2681 (ACTIVE) - Details

2023-S2681 (ACTIVE) - Summary

2023-S2681 (ACTIVE) - Sponsor Memo

2023-S2681 (ACTIVE) - Bill Text download pdf

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Insurance Committee

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co-Sponsors

Pete Harckham

2023-S2681 (ACTIVE) - Details

2023-S2681 (ACTIVE) - Summary

2023-S2681 (ACTIVE) - Sponsor Memo

2023-S2681 (ACTIVE) - Bill Text download pdf

Comments