S T A T E O F N E W Y O R K
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10160
I N A S S E M B L Y
May 9, 2012
___________
Introduced by M. of A. WRIGHT, MORELLE -- (at request of the Department
of Financial Services) -- read once and referred to the Committee on
Insurance
AN ACT to amend the insurance law, in relation to workers' compensation
rate service organizations; and to amend chapter 11 of the laws of
2008, amending the workers' compensation law, the insurance law, the
volunteer ambulance workers' benefit law and the volunteer firefight-
ers' benefit law, relating to rates for workers' compensation insur-
ance and setting forth conditions for a workers' compensation rate
service organization, in relation to the effectiveness thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (e) of section 2305 of the insurance law, as
amended by chapter 11 of the laws of 2008, is amended to read as
follows:
(e) The superintendent: (1) by regulation may, in lieu of the waiting
period set forth in subsection (b) of this section, require workers'
compensation insurance rate filings to be specifically approved before
they become effective; and (2) shall hold a public hearing if a rate
service organization makes a loss cost filing for workers' compensation
that is an increase of seven percent or more over the approved loss
costs from the prior year. Until June second, two thousand [thirteen]
EIGHTEEN, a rate service organization for workers' compensation shall
make a loss cost filing every year on or before June first, or such
earlier date as is set by the superintendent.
S 2. Subsection (s) of section 2313 of the insurance law, as amended
by chapter 11 of the laws of 2008, is amended to read as follows:
(s) Notwithstanding any other provision of this article, no rate
service organization may file rates for workers' compensation insurance
after February first, two thousand eight, but a rate service organiza-
tion may file loss costs or other statistical information, including
rating plans, until June second, two thousand [thirteen] EIGHTEEN.
Notwithstanding subsection (j) of this section, any such rate service
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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A. 10160 2
organization shall nonetheless be required to be licensed pursuant to
this section.
S 3. Paragraph 1 of subsection (t) of section 2313 of the insurance
law, as added by chapter 11 of the laws of 2008, is amended to read as
follows:
(1) The governing body of a workers' compensation rate service organ-
ization shall be comprised of nine voting members. Four members shall
represent insurers authorized to write workers' compensation insurance
in this state, and shall be selected in such manner as is determined by
the members of the rate service organization. One member of the govern-
ing body shall be a representative of the state insurance fund. [The]
EACH OF THE remaining four members of the governing body shall serve for
[terms] A TERM of two years AND UNTIL HIS OR HER SUCCESSOR SHALL HAVE
BEEN APPOINTED AND APPROVED, PROVIDED THAT THE APPOINTING ENTITY
APPOINTS A SUCCESSOR MEMBER WITHIN ONE HUNDRED TWENTY DAYS OF THE EXPI-
RATION OF THE TERM OF OFFICE, and shall not be employed by, or serve as
[officers] AN OFFICER or [directors] DIRECTOR of, [insurers] AN INSURER
authorized to write workers' compensation insurance in this state, or
any parent, subsidiary, or affiliate thereof. One such member of the
governing body shall be appointed by the superintendent. The other three
such members shall be appointed subject to the approval of the super-
intendent by the following: [(i)] (A) the workers' compensation board;
[(ii)] (B) the Business Council of New York State, Inc.; and [(iii)] (C)
the American Federation of Labor - Congress of Industrial Organizations
of New York State. Any vacancy on the governing body shall be filled in
the same manner as the initial appointment. The governing body shall
select a chief executive officer who shall serve at the pleasure of the
governing body and whose terms and conditions of employment shall be
approved by the governing body. No restriction in this subsection shall
apply if compliance is prevented by the failure of any appointing
authority to make an appointment, or of the superintendent to approve
such appointment.
S 4. Section 16 of chapter 11 of the laws of 2008 amending the work-
ers' compensation law, the insurance law, the volunteer ambulance work-
ers' benefit law and the volunteer firefighters' benefit law, relating
to rates for workers' compensation insurance and setting forth condi-
tions for a workers' compensation rate service organization, is amended
to read as follows:
S 16. This act shall take effect February 1, 2008; provided that the
amendments to paragraph 2 of subsection (a) of section 2316 of the
insurance law made by section eleven of this act shall take effect on
the same date that section 68 of chapter 6 of the laws of 2007 takes
effect; provided further that the amendments to section 2316 of the
insurance law made by section eleven of this act shall not affect the
expiration of such section pursuant to section 2342 of the insurance law
and shall be deemed expired therewith; and provided further that section
ten of this act shall expire and be deemed repealed June 2, [2013] 2018.
S 5. This act shall take effect immediately; provided, however, that
the amendments to paragraph 1 of subsection (t) of section 2313 of the
insurance law made by section three of this act shall not affect the
repeal of such subsection and shall be deemed repealed therewith.