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

                                  7268

                            I N  S E N A T E

                               May 8, 2014
                               ___________

Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT to amend the workers' compensation law, in relation to  providing
  conditional renewal notices to policyholders

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

  Section 1. Subdivision 5 of section 54 of  the  workers'  compensation
law,  as  amended  by section 23 of part GG of chapter 57 of the laws of
2013, is amended to read as follows:
  5. Cancellation, CONDITIONAL  RENEWAL  and  termination  of  insurance
contracts.  No  contract  of  insurance  issued  by an insurance carrier
against liability arising under this chapter shall be  cancelled  within
the  time  limited  in such contract for its expiration unless notice is
given as required by this section.  When cancellation is due to non-pay-
ment of premiums and assessments, such cancellation shall not be  effec-
tive  until  at  least  ten  days after a notice of cancellation of such
contract, on a date specified in such notice,  shall  be  filed  in  the
office  of  the chair and also served on the employer. When cancellation
is due to any reason other than non-payment of premiums and assessments,
such cancellation shall not be effective  until  at  least  thirty  days
after  a notice of cancellation of such contract, on a date specified in
such notice, shall be filed in the office of the chair and  also  served
on the employer; provided, however, in either case, that if the employer
has  secured  insurance  with  another  insurance  carrier which becomes
effective prior to the expiration of the time stated in such notice, the
cancellation shall be effective as of the date of such  other  coverage.
No  insurer  shall refuse to renew any policy insuring against liability
arising under this chapter unless at least  thirty  days  prior  to  its
expiration notice of intention not to renew has been filed in the office
of the chair and also served on the employer.
  Such  notice  shall be served on the employer by delivering it to him,
her or it or by sending it by mail, by certified or  registered  letter,
return  receipt  requested, addressed to the employer at his, her or its
last known place of business; provided that, if the employer be a  part-

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

                                                           LBD14461-01-4

S. 7268                             2

nership, then such notice may be so given to any of one of the partners,
and if the employer be a corporation then the notice may be given to any
agent  or  officer  of  the  corporation  upon whom legal process may be
served;  and  further provided that an employer may designate any person
or entity at any address to receive such  notice  including  the  desig-
nation  of  one person or entity to receive notice on behalf of multiple
entities insured under one insurance policy and that service  of  notice
at  the address so designated upon the person or entity so designated by
delivery or by mail, by certified or registered letter,  return  receipt
requested,  shall  satisfy  the  notice  requirement  of  this  section.
Provided, however, the right to cancellation of a policy of insurance in
the state fund shall be exercised only for non-payment of  premiums  and
assessments or as provided in section ninety-four of this chapter.
  A  CONTRACT OF INSURANCE SHALL REMAIN IN FULL FORCE AND EFFECT SUBJECT
TO THE SAME TERMS AND CONDITIONS, LOSS COST MULTIPLIERS AND  CLASSIFICA-
TION  OF  THE EMPLOYER WITH REGARD TO THE PAYMENT OF DIVIDENDS, PURSUANT
TO SECTIONS FOUR THOUSAND ONE HUNDRED SIX AND FOUR THOUSAND ONE  HUNDRED
FOURTEEN OF THE INSURANCE LAW, UNLESS WRITTEN NOTICE IS MAILED OR DELIV-
ERED BY THE CARRIER TO THE EMPLOYER, AT THE ADDRESS SHOWN ON THE POLICY,
AND TO SUCH EMPLOYER'S AUTHORIZED AGENT OR BROKER, INDICATING THE CARRI-
ER'S INTENTION TO CONDITION RENEWAL UPON INCREASED DEDUCTIBLE, CHANGE IN
CLASSIFICATION  WITH  REGARD TO THE PAYMENT OF DIVIDENDS THAT MAY RESULT
IN A REDUCTION IN DIVIDENDS PAID, OR UPON INCREASED PREMIUMS  IN  EXCESS
OF  TEN PERCENT (EXCLUSIVE OF ANY PREMIUM INCREASE GENERATED AS A RESULT
OF INCREASED LOSS COSTS FILED AND APPROVED IN ACCORDANCE WITH SUBSECTION
(E) OF SECTION TWO THOUSAND THREE HUNDRED FIVE  OF  THE  INSURANCE  LAW,
INCREASED  EXPOSURE  UNITS,  OR  AS  A RESULT OF EXPERIENCE RATING, LOSS
RATING, RETROSPECTIVE RATING OR AUDIT). SUCH NOTICE SHALL BE  MAILED  OR
DELIVERED  AT LEAST SIXTY, BUT NOT MORE THAN ONE HUNDRED TWENTY, DAYS IN
ADVANCE OF THE EXPIRATION DATE OF THE  POLICY,  AND  SHALL  CONTAIN  THE
SPECIFIC REASON OR REASONS FOR CONDITIONAL RENEWAL, SET FORTH THE AMOUNT
OF  ANY  PREMIUM  INCREASE  (OR,  WHERE SUCH AMOUNT CANNOT REASONABLY BE
DETERMINED AS OF THE TIME THE NOTICE IS PROVIDED, A REASONABLE  ESTIMATE
OF  THE  PREMIUM  INCREASED  BASED UPON THE INFORMATION AVAILABLE TO THE
INSURANCE CARRIER AT THAT TIME), A REASONABLE ESTIMATE OF THE  POTENTIAL
REDUCTION IN DIVIDENDS ATTRIBUTABLE TO THE CHANGE IN CLASSIFICATION, AND
THE AMOUNT OF THE INCREASED DEDUCTIBLE. NOTHING IN THIS SUBDIVISION WILL
REQUIRE  THE INSURANCE CARRIER TO PROVIDE SUCH NOTICE WHEN THE EMPLOYER,
AN AGENT OR BROKER AUTHORIZED BY  THE  EMPLOYER,  OR  ANOTHER  INSURANCE
CARRIER  OF THE EMPLOYER HAS MAILED OR DELIVERED WRITTEN NOTICE THAT THE
POLICY HAS BEEN REPLACED OR IS NO LONGER DESIRED.
  EVERY NOTICE MAILED OR DELIVERED BY AN INSURANCE CARRIER  PURSUANT  TO
THIS  SUBDIVISION  SHALL ADVISE THE EMPLOYER AND SUCH EMPLOYER'S AUTHOR-
IZED AGENT OR BROKER OF THE AVAILABILITY OF LOSS INFORMATION  CONSISTENT
WITH  THIS  SUBDIVISION  UPON  WRITTEN  REQUEST  BY THE EMPLOYER OR SUCH
EMPLOYER'S AUTHORIZED AGENT OR BROKER, THE INSURANCE CARRIER SHALL  MAIL
OR  DELIVER  LOSS  INFORMATION  COVERING THE PERIOD OF TIME COVERAGE HAS
BEEN PROVIDED BY THE INSURANCE CARRIER, WITHIN TEN DAYS OF SUCH REQUEST.
SUCH INFORMATION SHALL INCLUDE INFORMATION ON CLOSED AND OPEN CLAIMS AND
ANY NOTICES OF OCCURRENCES, INCLUDING DATES AND DESCRIPTIONS  OF  OCCUR-
RENCES AND AMOUNTS OF ANY PAYMENTS OR AMOUNTS HELD IN RESERVE FOR FUTURE
PAYMENTS.
  The  provisions  of  this  subdivision 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

S. 7268                             3

policy  providing  comprehensive  personal liability insurance on a one,
two, three or four family owner-occupied dwelling.
  In the event such cancellation or termination notice is not filed with
the  chair  within  the  required  time period, the chair shall impose a
penalty in the amount of up to five hundred  dollars  for  each  ten-day
period  the insurance carrier or state insurance fund failed to file the
notification. All penalties collected pursuant to this subdivision shall
be deposited in the uninsured employers' fund.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law, and shall apply to all  policies  issued  or
renewed on or after such effective date.