S T A T E   O F   N E W   Y O R K
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                                  2948

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

Introduced by M. of A. HEVESI -- read once and referred 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04642-01-5

              

A. 2948                             2

  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-
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.

A. 2948                             3

  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
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.