NY State Senate Bill 2013-S6700

Senate Bill S6700

2013-2014 Legislative Session

Enacts the "construction insurance transparency act of 2014" to require insurers providing coverage for liability under the scaffold law to report to the superintendent of financial services

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 28, 2014	referred to insurance

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2013-S6700 (ACTIVE) - Details

See Assembly Version of this Bill:: A8745
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §342, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3392, A4718
2017-2018: S5109, A1855, A8949
2019-2020: S465, A5980
2021-2022: S4490, A1176
2023-2024: S5995, A332

2013-S6700 (ACTIVE) - Summary

Enacts the "construction insurance transparency act of 2014" to require insurers providing coverage for liability under the scaffold law to report, on an annual basis, to the superintendent of financial services relating to its finances and claims paid thereunder.

2013-S6700 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6700

TITLE OF BILL:  An act to amend the insurance law, in relation to
enacting the "construction insurance transparency act of 2014"
requiring all insurers which issue policies of liability insurance
insuring against claims made in reliance upon the duty imposed by the
"scaffold law" to file annual financial statements and detailed claim
data with the superintendent of financial services

PURPOSE:  The bill expands upon current insurance reporting laws by
providing for more detailed reporting requirements of liability
insurers' "financial statements" and "closed claims" data, where those
insurers provide coverage against claims made under Labor Law 240.
This data collection will provide lawmakers with a source of reliable
and accessible data that will better enable them to evaluate liability
insurance in this area and assist in providing an optimal product to
New York citizens.

SUMMARY OF PROVISIONS:  The proposed language provides for a publicly
accessible and neutral method for the systematic collection of
financial and closed claims data for liability insurance covering
claims made under Labor Law 240.

The supplemental financial disclosure requirements stipulate that
insurers must provide detailed information concerning all sources of
"income including; but not limited to, data on premiums attributable

to coverage for labor law 240 claims and investment income.

Detailed information regarding expenses must also be provided,
including, expenses actually incurred and paid, normal business
expenses, salaries, commissions, consulting fees, legal expenses, risk
management program expenses and advertising costs. A synopsis of the
total claims or settlements paid in each financial statement and
specific data on claims that have been settled with or without a
payment (closed claims) must also be provided.

Additionally, all submitted data must be signed by the insurer's chief
executive officer, attesting its' accuracy. Civil penalties will be
assessed against companies that fail to comply with any of the
provisions of the bill.

Finally, the Department of Financial Services must make all
information publicly available on the department's web site.

JUSTIFICATION:  For participants in the construction industry
liability insurance plays a vital role providing financial security
for all parties in the event of an accident. Liability insurance is
often required for contractors or property owners to obtain necessary
permits or to take on many projects; without liability insurance,
participation in this sector of the economy can be impeded. Given the
critical role of the construction industry in the State economy, the
State has a vested interest in ensuring transparency to ensure that
the premiums paid for liability insurance are fairly established.
Given perennial calls for reform that would weaken Labor Law 240 -a
long-standing and successful worker safety law - based on that laws
alleged impact on insurance costs, it is particularly important that
insurance covering Labor Law 240 claims is given particular scrutiny.


The determination of premiums for such liability-insurance policies in
New York has, gone on too long in obscurity. No independent and
neutral mechanism exists to determine why premium rates are set where
they are. And, because insurers routinely refuse requests to produce
more detailed data, lawmakers, workers and the public have to rely on
the industry's reports to make policy decisions.

As a matter of public trust, liability insurers should be required to
make policyholders and the public aware of the facts related to
premium determinations and financial solvency in this area.
Furthermore, independent, objective and accurate data is needed so
lawmakers and the public can conduct sound analyses in reaching public
policy decisions that impact(s) tens of thousands of New Yorkers
working in the construction industry. More detailed claim data would
help in evaluating the insurance industry claims that worker safety
laws are responsible for driving up insurance premiums paid by
property owners and contractors, In the absence of this basic data, it
is impossible for lawmakers and consumers to engage in rational
decision-making about insurance industry proposals that would severely
limit workers' rights.

LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  The first day of January next succeeding the date
upon which the bill becomes law.

2013-S6700 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6700

                            I N  S E N A T E

                            February 28, 2014
                               ___________

Introduced  by  Sens.  LANZA, RITCHIE -- 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  enacting  the
  "construction insurance transparency act of 2014" requiring all insur-
  ers  which  issue  policies  of  liability  insurance insuring against
  claims made in reliance upon the duty imposed by the "scaffold law" to
  file annual financial statements and  detailed  claim  data  with  the
  superintendent of financial services

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This  act  shall  be  known  and  may  be  cited  as  the
"construction insurance transparency act of 2014".
  S  2.  Declarations  of  legislative  findings. The legislature hereby
finds and declares that persons,  corporations,  associations  or  other
business  entities  which issue policies of liability insurance insuring
an owner of real property or a contractor who  is  performing  work  and
services  on  real  property  against  claims  made in reliance upon the
duties imposed upon such parties  by  section  240  of  the  labor  law,
commonly  referred  to  as  the "scaffold law", owe an obligation to the
public, to those they insure and to those  who  may  in  the  future  be
insured  by  them,  to fully disclose in a public and transparent manner
all elements relating to the premiums paid for such insurance, the meth-
od and manner in which such premiums are  determined  and  imposed  upon
insureds,  and  claims  made  by  injured persons who rely on owners and
contractors to provide a safe and secure worksite as  required  in  such
section  of  such  law. It is essential that the public be made aware of
such an insurer's responsibility  to  inform  them  of  their  financial
condition and solvency, and the details and specifics of the factors and
circumstances behind its financial solvency as well as the basis for the
rates they charge to owners and contractors to obtain such coverage. The
determination  of  premiums  for such liability insurance policy in this
state has, unfortunately, gone on too long in obscurity, with even those
who bear the cost of premiums unable to learn why prices are set as they
are. As a matter of public trust, liability insurers should be  required

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11972-02-4

S. 6700                             2

to make the public aware of the pertinent facts related to their premium
determinations  and  financial  solvency by disclosing all the pertinent
facts as provided for in this section. It is the further  sense  of  the
legislature  that  this  data  should be disclosed in an open and public
manner, and should be made available without undue cost and delay.
  S 3. The insurance law is amended by adding a new section 342 to  read
as follows:
  S  342.  FINANCIAL  STATEMENT AND DETAILED CLAIM DATA TO BE FILED WITH
THE SUPERINTENDENT. (A) FOR PURPOSES OF THIS SECTION, THE TERM "INSURER"
SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION OR OTHER BUSINESS ENTITY
WHICH ISSUES A POLICY OF LIABILITY INSURANCE INSURING  A  CONTRACTOR  OR
OWNER  OF  REAL PROPERTY LOCATED IN THIS STATE AGAINST CLAIMS MADE BY AN
INJURED WORKER, THE CLAIM FOR WHICH IS MADE IN RELIANCE  UPON  THE  DUTY
OWED  TO  SUCH  WORKER PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED
FORTY OF THE LABOR LAW.
  (B) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL FOR THE
PRIOR CALENDAR YEAR PROVIDE THE SUPERINTENDENT AND  THE  PUBLIC  WITH  A
DETAILED  FINANCIAL  STATEMENT  TO  SUPPLEMENT AND EXPAND UPON ANY OTHER
INFORMATION OTHERWISE PROVIDED TO THE DEPARTMENT AS IT RELATES AN INSUR-
ER'S PROVISION OF LIABILITY INSURANCE COVERAGE TO OWNERS OF REAL PROPER-
TY OR CONTRACTORS PERFORMING SERVICES TO OWNERS  OF  REAL  PROPERTY  FOR
CLAIMS  MADE  BY  AN  INJURED  PERSON  IN RELIANCE UPON THE DUTY OWED BY
SECTION TWO HUNDRED FORTY OF THE LABOR LAW; PROVIDED, HOWEVER, THAT  THE
INITIAL  FINANCIAL  STATEMENT SO FILED BY AN INSURER AFTER THE EFFECTIVE
DATE OF THIS SECTION SHALL INCLUDE  THE  INFORMATION  REQUIRED  IN  THIS
SUBDIVISION  NOT  ONLY  FOR  SUCH  PRIOR  CALENDAR YEAR BUT ALSO FOR THE
PREVIOUS NINE CALENDAR YEARS PRIOR TO SUCH REPORT.  THE FINANCIAL STATE-
MENT SHALL, IN DEPTH, SEPARATE THE COST OF PROVIDING SECTION TWO HUNDRED
FORTY OF THE LABOR LAW BASED COVERAGE FROM THE COST OF PROVIDING GENERAL
LIABILITY INSURANCE INSURING THE SAME OWNER OR CONTRACTOR  WITH  RESPECT
TO  THE  SAME PROPERTY AND SHALL CONTAIN AT LEAST THE FOLLOWING INFORMA-
TION RELATING TO COVERAGE PURSUANT TO SUCH SECTION:  (1) THAT PORTION OF
PREMIUMS ASSESSED AND ATTRIBUTABLE TO PROVIDING SUCH COVERAGE; (2)  PAID
JUDGMENTS,  SETTLEMENTS OR LOSSES RESULTING FROM SUCH COVERAGE; (3) CASE
RESERVES FOR LOSSES WHICH MAY BE ATTRIBUTABLE TO COVERAGE; (4)  INCURRED
BUT  NOT  REPORTED LOSS ESTIMATES WHICH MAY BE ATTRIBUTABLE TO COVERAGE;
(5) PAID DEFENSE AND  COST  CONTAINMENT  EXPENSES  ATTRIBUTABLE  TO  ANY
CLAIMS  MADE BASED UPON SUCH COVERAGE; (6) CASE RESERVES FOR DEFENSE AND
COST CONTAINMENT EXPERIENCE ATTRIBUTABLE TO ANY CLAIMS MADE  BASED  UPON
SUCH  COVERAGE;  (7) INCURRED BUT NOT REPORTED DEFENSE AND COST CONTAIN-
MENT ESTIMATES BASED UPON SUCH COVERAGE; (8) PREMIUM AND LOSS EXPERIENCE
IDENTIFIED BY POLICY LIMITS AND DEDUCTIBLES; (9) NUMBER OF CLAIMS INITI-
ATED AND CLOSED; (10) NUMBER OF CLAIMS CLOSED WITH LOSS  PAYMENTS;  (11)
NUMBER OF OPEN CLAIMS AT THE TIME SUCH STATEMENT IS PREPARED; (12) OTHER
EXPENSES  BY CATEGORY AS DETERMINED BY THE SUPERINTENDENT TO REFLECT THE
COST TO THE INSURER TO PROVIDE SUCH COVERAGE  AS  PART  OF  A  LIABILITY
INSURANCE  POLICY;  (13) INVESTMENT INCOME REALIZED FROM THAT PORTION OF
THE PREMIUM PAID FOR A POLICY PROVIDING SUCH COVERAGE; (14)  THE  AMOUNT
OF EXPOSURE TO THE INSURER RESULTING FROM THE PROVISION OF SUCH COVERAGE
AND  WHETHER  THE  INSURER  HAS  LIMITED THE AMOUNT OF COVERAGE PROVIDED
TOGETHER WITH AN ESTIMATE OF THE AMOUNT WHICH MIGHT BE REQUIRED  OF  THE
INSURED  TO  PURCHASE FURTHER COVERAGE FROM AN OUT OF STATE EXCESS LINES
PROVIDER, BASED UPON CURRENT DATA AVAILABLE TO SUCH  IN-STATE  PROVIDER,
ESPECIALLY  WHERE  SUCH  IN-STATE  PROVIDER  OPERATES  AS AN EXCESS LINE
INSURER FOR RISKS IN ANOTHER STATE; (15) AMOUNTS SPENT  BY  INSURER  FOR
RISK  MANAGEMENT  PROGRAMS,  OR  REQUIRED TO BE SPENT BY INSUREDS AT THE

S. 6700                             3

BEHEST OF THE INSURER, WHICH  PROGRAMS  ARE  DESIGNED  AND  INTENDED  TO
PROMOTE  WORKSITE  SAFETY,  MORE  PARTICULARLY  AS  IT RELATES TO HEIGHT
RELATED ACCIDENTS COVERED BY SECTION TWO HUNDRED FORTY OF THE LABOR LAW;
AND (16) THE AFOREGOING EXPERIENCE AND INFORMATION FURTHER SUBDIVIDED BY
QUALITY OF RISK AS MEASURED BY PRIOR LOSS EXPERIENCE, CONTRACTOR PAYROLL
RANGES,  CONTRACTOR  NUMBER  OF EMPLOYEE RANGES, RISK MANAGEMENT PARTIC-
IPATION, AND OTHER RELEVANT  IDENTIFIABLE  DIFFERENCES  IN  EXPOSURE  TO
INSURANCE  LOSS. THE DATA PROVIDED BY INSURERS SHALL BE SEPARATED OUT SO
THAT A DETERMINATION CAN BE MADE THAT A CLAIM  MADE  OR  PAID  IS  BASED
PARTIALLY  OR  TOTALLY  UPON SECTION TWO HUNDRED FORTY OF THE LABOR LAW;
COVERAGE, AND NOT ANY OTHER PROVISION OF STATUTORY OR COMMON LAW  IMPOS-
ING  ANOTHER  OR  DIFFERENT  OR  SEPARATE STANDARD OF CARE OR DUTY TO AN
INJURED PARTY.  SUCH FINANCIAL STATEMENT SHALL INCLUDE THE  ENTIRETY  OF
SUCH  INSURER'S  BUSINESS ACTIVITIES INSURING AGAINST RISKS OCCURRING IN
THIS STATE AND SHALL BE IN A FORM DETERMINED BY THE SUPERINTENDENT.  THE
FORM SHALL BE SUFFICIENTLY ITEMIZED IN A MANNER THAT ALLOWS FOR AN ACTU-
ARIALLY  SOUND  ANALYSIS  OF THE INCOME REALIZED BY THE INSURER FROM ALL
SOURCES DURING SUCH YEAR, INCLUDING BUT NOT LIMITED TO PREMIUMS, INVEST-
MENT INCOME, AND ANY OTHER CATEGORY OR CATEGORIES OF  INCOME  AS  DETER-
MINED  BY THE SUPERINTENDENT TO REFLECT THE FULL DISCLOSURE REQUIREMENTS
OF THIS SECTION AND THAT PORTION WHICH MAY BE  SPECIFICALLY  RELATED  TO
SUCH COVERAGE. AT A MINIMUM, SUCH INFORMATION SHALL CONSIST OF THE ITEMS
SET  FORTH IN THE STATEMENT OF INCOME, EXCLUDING THE CAPITAL AND SURPLUS
ACCOUNT SECTION OF THE PROPERTY/CASUALTY STATUTORY ANNUAL STATEMENT,  AS
APPLICABLE  TO  THE  INSURER'S  NEW  YORK STATE BUSINESS, AS WELL AS THE
OTHER INFORMATION DELINEATED IN THIS SUBSECTION. SUCH  FINANCIAL  STATE-
MENT  SHALL  ALSO CONTAIN A COMPREHENSIVE AND DETAILED DISCLOSURE OF THE
INSURER'S EXPENSES ACTUALLY INCURRED AND PAID DURING SUCH CALENDAR YEAR,
TO INCLUDE NORMAL BUSINESS EXPENSES, SALARIES,  COMMISSIONS,  CONSULTING
FEES,  LEGAL  EXPENSES,  ADVERTISING COSTS AND ANY OTHER CATEGORY DEEMED
PERTINENT TO THE INTENT OF THIS  SECTION.  AT  A  MINIMUM,  THE  EXPENSE
INFORMATION  REQUIRED SHALL CONSIST OF THE ITEMS SET FORTH IN THE UNDER-
WRITING  AND  INVESTMENT  EXHIBIT  -  PART   3   -   EXPENSES   OF   THE
PROPERTY/CASUALTY  STATUTORY  ANNUAL  STATEMENT,  AS  APPLICABLE  TO THE
INSURER'S NEW YORK STATE BUSINESS. WITH RESPECT TO  SALARIES  (INCLUDING
ALL  OTHER FORMS OF COMPENSATION), EACH INSURER SHALL ITEMIZE THE SALARY
OF THE TWENTY MOST HIGHLY COMPENSATED EMPLOYEES OF SUCH  INSURER  DURING
SUCH  YEAR,  PROVIDED  THAT  THE  NAMES  OF  SUCH  EMPLOYEES NEED NOT BE
DISCLOSED.  SUCH FINANCIAL STATEMENT SHALL ALSO PROVIDE THE PUBLIC  WITH
A  SYNOPSIS  OF CLAIMS OR SETTLEMENTS PAID FOR SECTION TWO HUNDRED FORTY
OF THE LABOR LAW COVERAGE PURSUANT TO SUCH POLICIES OR CONTRACTS,  LIST-
ING THE TOTAL OF SUCH CLAIMS AND SETTLEMENTS ATTRIBUTABLE TO SUCH COVER-
AGE.  AT  A MINIMUM, THE CLAIM INFORMATION REQUIRED SHALL CONSIST OF THE
ITEMS  SET  FORTH  IN  THE  EXHIBIT  OF  PREMIUMS  AND  LOSSES  OF   THE
PROPERTY/CASUALTY  STATUTORY  ANNUAL  STATEMENT,  AS  APPLICABLE  TO THE
INSURER'S NEW YORK STATE BUSINESS AND IDENTIFIED AND  CATEGORIZED  SEPA-
RATELY  FOR  EACH ZIP CODE IN THIS STATE. SUCH FINANCIAL STATEMENT SHALL
BE SIGNED AND ATTESTED AS FULL, COMPLETE AND ACCURATE BY THE CHIEF EXEC-
UTIVE OFFICER OF THE INSURER, AND HE OR SHE  SHALL  BE  HELD  PERSONALLY
RESPONSIBLE  WITH  RESPECT TO THE ACCURACY OF THE CONTENT OF SUCH STATE-
MENT. THE SUPERINTENDENT SHALL PROVIDE INSURERS WITH A METHOD TO  SUBMIT
THEIR FINANCIAL STATEMENTS ELECTRONICALLY VIA THE INTERNET, WHICH METHOD
SHALL  INCLUDE  INSTRUCTIONS RELATING TO THE USE OF AN ELECTRONIC SIGNA-
TURE WHICH SHALL BE SUBJECT TO, AND SUBMITTED IN ACCORDANCE WITH SECTION
THREE HUNDRED SIXTEEN OF THIS ARTICLE; PROVIDED, HOWEVER, THAT NO EXCEP-
TION AUTHORIZED IN SUCH SECTION MAY BE REQUESTED OR GRANTED.

S. 6700                             4

  (C) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
THE SUPERINTENDENT WITH DETAILED CLOSED CLAIM INFORMATION FOR  THE  SAME
INSURANCE COVERAGE AS PROVIDED FOR IN SUBSECTION (B) OF THIS SECTION FOR
THE  MOST  RECENTLY  CONCLUDED  CALENDAR  YEAR. UNTIL THE SUPERINTENDENT
PROMULGATES  DATA  COLLECTION  FORMS  AND PROCEDURES FOR THE ITEMIZATION
REQUIREMENTS, DATA SHALL BE COLLECTED USING,  AT  A  MINIMUM,  THE  MOST
RECENT PUBLICLY AVAILABLE FORMS REQUIRED BY LAW, OR COMMONLY USED IN THE
INSURANCE  INDUSTRY.  THE SUPERINTENDENT MAY REQUIRE ADDITIONAL INFORMA-
TION BEYOND THAT WHICH MAY OTHERWISE BE CURRENTLY REQUIRED IF HE OR  SHE
DEEMS  IT  NECESSARY  AND WARRANTED WITHOUT THE NEED TO FORMALLY ADOPT A
RULE OR REGULATION PROVIDED SUCH  REQUIREMENT  IS  CONSISTENT  WITH  THE
INTENT  OF  THIS  SECTION.  SUCH DETAILED CLAIM DATA SHALL BE SIGNED AND
ATTESTED AS FULL, COMPLETE AND ACCURATE BY THE CHIEF  EXECUTIVE  OFFICER
OF  THE INSURER, AND HE OR SHE SHALL BE HELD PERSONALLY RESPONSIBLE WITH
RESPECT TO THE ACCURACY OF THE DATA. THE DETAILED CLAIM  DATA  SHALL  BE
SUBMITTED  IN  THE SAME MANNER AS PROVIDED FOR IN SUBSECTION (B) OF THIS
SECTION.
  (D) THE SUPERINTENDENT SHALL, IN BOTH WRITTEN FORM AND AS PART OF  THE
DEPARTMENT  WEB  SITE, MAKE SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM
INFORMATION AVAILABLE TO THE  PUBLIC.  THE  DETAILED  CLAIM  INFORMATION
SHALL  BE  PROVIDED  IN AGGREGATE FORM FOR ALL INSURERS AND SEPARATED BY
SPECIFIC INSURER, COMBINED WITHOUT  ANY  IDENTIFICATION  OF  A  SPECIFIC
CLAIM  TO  A SPECIFIC INSURER.   NONE OF THE PUBLICLY AVAILABLE DETAILED
CLAIM INFORMATION SHALL IDENTIFY THE INDIVIDUAL  INSURER,  DEFENDANT  OR
PLAINTIFF,  OR  REPRESENTATIVE  OF  THE SAME, ASSOCIATED WITH THE CLAIM.
SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM INFORMATION SHALL BE DEEMED
A PUBLIC DOCUMENT AND NO PERSON SHALL BE REQUIRED TO FILE A REQUEST  FOR
SUCH FINANCIAL STATEMENTS PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS
LAW  IN ORDER TO RECEIVE A COPY THEREOF, BUT UPON REQUEST AND PAYMENT OF
THE FEE FOR COPYING SUCH DOCUMENT, IT SHALL BE PROVIDED FORTHWITH.  WITH
RESPECT TO THE ELECTRONIC COPY OF SUCH FINANCIAL STATEMENTS AND DETAILED
CLAIM  INFORMATION,  WHICH  SHALL  BE ACCESSIBLE ON THE DEPARTMENT'S WEB
SITE, THE DEPARTMENT SHALL HIGHLIGHT THE AVAILABILITY OF  SUCH  INFORMA-
TION  TO  THE  PUBLIC  ON  SUCH WEB SITE, AND THE LINK TO EACH INSURER'S
FINANCIAL STATEMENT AND THE AGGREGATED DETAILED CLAIM INFORMATION  SHALL
BE  ACCESSIBLE IN A SIMPLE AND EASY MANNER. BOTH THE FINANCIAL STATEMENT
AND AGGREGATED DETAILED CLAIM INFORMATION ON THE DEPARTMENT'S  WEB  SITE
SHALL  BE  AVAILABLE  IN  SPREADSHEET  FORMAT,  IN ADDITION TO ANY OTHER
FORMAT THE SUPERINTENDENT DETERMINES IS APPROPRIATE. WHERE SUMMARIES ARE
INCLUDED, THEY SHALL BE WRITTEN IN PLAIN AND SIMPLE ENGLISH SO THAT  THE
PUBLIC AT LARGE CAN EASILY COMPREHEND THE DATA PROVIDED.
  (E)  ON  OR  BEFORE  JULY FIRST OF EACH YEAR, THE SUPERINTENDENT SHALL
ISSUE REPORTS SUMMARIZING AND EXPLAINING THE INFORMATION COLLECTED  FROM
THE  FINANCIAL  STATEMENTS AND THE DETAILED CLAIM INFORMATION AND SUMMA-
RIZING THE COST AND  OTHER  ESSENTIAL  ELEMENTS  RELEVANT  TO  PROVIDING
SECTION  TWO  HUNDRED FORTY OF THE LABOR LAW COVERAGE. SUCH REPORT SHALL
FURTHER CONTAIN SUCH RECOMMENDATIONS THE SUPERINTENDENT DEEMS  ADVISABLE
TO ENCOURAGE THE UTILIZATION OF RISK MANAGEMENT PROGRAMS TO BE REGULARLY
CONDUCTED  BY  CONTRACTORS TO REDUCE PREMIUMS AND PROVIDE WORKERS WITH A
SAFER WORK ENVIRONMENT, AND ANY OTHER STEPS CONTRACTORS OR REAL PROPERTY
OWNERS SHOULD UTILIZE IN FURTHERANCE OF THE SAME. THE SUPERINTENDENT MAY
SEEK, AND SHALL BE ENTITLED TO RECEIVE, THE AID AND  ASSISTANCE  OF  THE
COMMISSIONER OF LABOR AND ANY OTHER STATE OR LOCAL GOVERNMENTAL OFFICIAL
CHARGED WITH RESPONSIBILITY FOR WORK SITE SAFETY IN PREPARING SUCH ANAL-
YSIS  AND RECOMMENDATIONS.  COPIES OF SUCH REPORTS SHALL BE FORWARDED TO
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE  ASSEMBLY  AND

S. 6700                             5

THE CHAIRS OF THE SENATE AND ASSEMBLY INSURANCE COMMITTEES. SUCH REPORTS
SHALL BE PUBLIC DOCUMENTS AND SHALL BE ACCESSIBLE BOTH IN PAPER COPY AND
ON  THE  DEPARTMENT'S  WEB  SITE IN A SIMILAR FASHION AS PROVIDED FOR IN
SUBDIVISION (D) OF THIS SECTION.
  (F)  WHERE  AN  INSURER FAILS OR REFUSES TO PROVIDE THE SUPERINTENDENT
WITH A FULL AND COMPLETE DISCLOSURE AS REQUIRED  BY  THIS  SECTION,  THE
SUPERINTENDENT SHALL TAKE SUCH ACTION HE OR SHE DEEMS NECESSARY TO BRING
THE  INSURER INTO FULL COMPLIANCE. SUCH ACTION MAY INCLUDE IMPOSITION OF
A CIVIL PENALTY OF UP TO FIFTY THOUSAND  DOLLARS  ASSESSED  AGAINST  THE
INSURER  FOR  EACH VIOLATION, TEMPORARY SUSPENSION OF ANY RIGHT TO ISSUE
ADDITIONAL POLICIES OR CONTRACTS UNTIL THE INSURER  BRINGS  ITSELF  INTO
FULL  COMPLIANCE, AN AUDIT OF THE INSURER'S RECORDS BY THE DEPARTMENT OR
ITS DESIGNATED REPRESENTATIVE TO OBTAIN THE INFORMATION AND WHICH  AUDIT
SHALL  BE  PAID FOR BY THE INSURER, OR ANY OTHER CIVIL REMEDY THE SUPER-
INTENDENT  DEEMS  WARRANTED  OR  NECESSARY  UNTIL  SUCH  INSURER   FULLY
COMPLIES.  IN  ADDITION  THE  OFFICER WHOSE SIGNATURE IS AFFIXED TO SUCH
STATEMENT MAY BE PERSONALLY PENALIZED TO THE SAME EXTENT.
  (G) THE SUPERINTENDENT MAY PROMULGATE SUCH RULES AND REGULATIONS HE OR
SHE DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF THE  PROVISIONS  OF
THIS  SECTION,  AND  SUCH RULES AND REGULATIONS MAY BE PROMULGATED ON AN
EMERGENCY BASIS IF THE SUPERINTENDENT WARRANTS SUCH ACTION TO BE  NECES-
SARY.
  S 4. Severability. If any item, clause, sentence, subparagraph, subdi-
vision  or  other  part  of  this act, or the application thereof to any
person or circumstances shall be held to be invalid, such holding  shall
not  affect, impair or invalidate the remainder of this act but it shall
be confined in its operation to the  item,  clause,  sentence,  subpara-
graph,  subdivision  or other part of this act directly involved in such
holding, or to the person and circumstances therein involved.
  S 5. This act shall take effect on the first of January next  succeed-
ing the date upon which it shall have become a law.

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