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Assessment on insolvent group self-insured trusts
Workers' Compensation (WKC) CHAPTER 67, ARTICLE 2
§ 15-a. Assessment on insolvent group self-insured trusts. The
legislature finds that in lieu of the assessments under sections fifteen
and one hundred fifty-one of this chapter that shall no longer be
imposed on closed group self-insured trusts as a result of the chapter
of the laws of two thousand eleven which added this section, the members
of group self-insured trusts that were insolvent upon closing, and that
fail to pay their obligations within the periods specified by this
section, shall be subject to a one time assessment pursuant to this
section. Within thirty days of January first, two thousand sixteen, all
employers who were members of a closed group self-insured trust that was
insolvent at the time the group was closed shall be subject to an
assessment under this section, except for those employers that: (1) have
entered into a settlement agreement or payment plan with the board under
which they have agreed to resolve all liabilities from the membership in
such trust, and remain current in their payments; (2) are members of a
group self-insurer that has transferred all of its liabilities
transferred via a loss portfolio transfer; or (3) have paid all moneys
billed them by the board at the time such assessment is due. For
purposes of this section, insolvent means the inability of a private
group self-insured trust to pay its outstanding lawful obligations under
this chapter as they mature in the regular course of business, as may be
shown by: (i) the self-insurer being underfunded as defined in
subdivision three-a of section fifty of this chapter; and (ii) the sum
of the group self-insured trust's assets, as defined by regulation of
the chair, plus the available security deposit held by the chair
pursuant to subdivision three-a of section fifty of this chapter and
regulation of the chair, being less than the total cost of all of the
group self-insured trust's anticipated workers' compensation
liabilities, as defined by board regulations, that will accrue within
the succeeding six months. The total of such assessment shall be
determined by the percentage of the assessment levied on all employers
under subdivision eight of section fifteen of this article in two
thousand ten that was levied on group self-insured trusts multiplied by
the total amount of the employer's unpaid pro rata share of any deficit
owed by the closed group self-insured employer of which such employer
was a member, as determined by the chair. The amount received on such
assessment shall be used as an offset against the assessments imposed on
other employers under subdivision eight of section fifteen of this
article and section one hundred fifty-one of this chapter in the
calendar year following the year in which it was received.