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This entry was published on 2014-09-22
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Payments into fund; returns; recoupment
Workers' Compensation (WKC) CHAPTER 67, ARTICLE 6-A
§ 108. Payments into fund; returns; recoupment. 1. On or before the
fifteenth day of February, May, August and November, of each year, every
carrier shall file, quarterly, with the superintendent of financial
services and with the commissioner of taxation and finance, identical
returns, under oath, on a form to be prescribed and furnished by the
superintendent of financial services, stating the amount of net written
premiums for policies issued or renewed by such carrier, during the
three months' periods ending, respectively, on the preceding December
thirty-first, March thirty-first, June thirtieth, and September
thirtieth, to insure payment of compensation pursuant to this chapter
and/or the longshore and harbor workers' compensation act and stating
the amount of dividends paid to policyholders during said period. For
the purposes of this section "net written premiums" shall mean gross
written premiums less return premiums on policies returned "not taken"
and on policies cancelled, but shall not mean premiums for reinsurance.

2. For the privilege of carrying on the business of workers'
compensation insurance in this state, every carrier shall pay into the
fund for deposit in the workers' compensation security fund payment
account established pursuant to section eighty-nine-f of the state
finance law, upon filing each quarterly return, a sum equal to one per
centum, provided, however, that the superintendent of financial services
may require each carrier to pay into the fund not more than two per
centum, of its net written premiums, less the amount of dividends paid
to policyholders, for the period covered by such return, except when
suspended in accordance with section one hundred nine of this article.

3. The provisions of this section 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.

4. The superintendent shall adopt a recoupment rate which shall enable
each carrier to recoup over a reasonable length of time a sum reasonably
calculated to recover the payments by the carrier under this section by
way of a surcharge on premiums charged for insurance policies to which
this section applies. Amounts recouped shall not be considered taxable
for the purposes of article thirty-three of the tax law.

5. The amount of any surcharge on premiums pursuant to subdivison two
of this section shall be separately stated on either a billing or policy
declaration sent to an insured. The superintendent shall determine the
rate of the surcharge and the collection period and these shall be
mandatory for all carriers. Carriers who collect surcharges in excess of
payments made pursuant to this section shall remit the excess to the
superintendent within one hundred twenty days after the end of the
collection period determined by the superintendent. The excess shall
first be applied to reimburse, on an equitable basis, those carriers who
are unable to collect surcharges equal to their paid assessments, and
any excess thereafter shall be retained by the fund to reduce future

6. The statement of the amount of surcharge required to be provided by
subdivision five of this section shall include a description of, and
purpose for, the New York Workers' Compensation Security Fund, as

"Companies writing workers' compensation insurance business in New
York are required to participate in the New York Workers' Compensation
Security Fund. If a company becomes insolvent, the security fund settles
unpaid claims and assesses each insurance company for its fair share.

New York law requires all companies to surcharge policies to recover
these assessments. If your policy is surcharged 'NY surcharge', an
amount will be displayed on your premium notice."