NY State Senate Bill 2015-S4399A

Archive: Last Bill Status - In Senate Committee Rules 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 17, 2016	committed to rules
Jun 01, 2016	advanced to third reading
May 25, 2016	2nd report cal.
May 24, 2016	1st report cal.1193
Feb 24, 2016	print number 4399a
Feb 24, 2016	amend and recommit to labor
Jan 06, 2016	referred to labor
Mar 18, 2015	referred to labor

Votes

- May 24, 2016 - Labor Committee Vote
  S4399A
  
  16
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Labor Committee Vote: May 24, 2016
      
      aye (16)
      
      Addabbo Jr.
      
      Akshar
      
      Dilan
      
      Gallivan
      
      Hannon
      
      Marcellino
      
      Martins
      
      Murphy
      
      Ortt
      
      Peralta
      
      Perkins
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Venditto

Bill Amendments

Original

A (Active)

2015-S4399 - Details

See Assembly Version of this Bill:: A2948
Current Committee:: Senate Rules
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §54, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7268, A9224
2017-2018: S1005, A1620

2015-S4399 - Summary

Relates to providing conditional renewal notices to policyholders; at least thirty days notice.

2015-S4399 - Sponsor Memo

                                BILL NUMBER:S4399

TITLE OF BILL:  An act to amend the workers' compensation law, in
relation to providing conditional renewal notices to policyholders

PURPOSE:

The purpose of this bill is to require that insurance carriers provide
conditional renewal notices to workers' compensation policy-holders
when the premium will increase more than ten percent or where there is
an increased deductible or a change in classification that may result
in a reduction of dividends.

SUMMARY OF PROVISIONS:

This legislation amends 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.

JUSTIFICATION:

Under current Insurance Law Section 3426(e), commercial policyholders
are entitled to receive a conditional renewal notice 60 to 120 days in
advance of the expiration date of their policy if the premium for
their renewal policy will increase by more than ,ten percent, or if
the renewal policy will have a change of limits, change in type of

coverage, reduction of coverage, or an increased deductible. The law
requiring such notices protects the customer by affording the
opportunity to look for alternative coverage before their current
policy expires.

Unfortunately, the rules for workers' compensation policies are not
the same. A worker's compensation carrier is not required to provide
any notice to a policyholder when the renewal premium will increase by
more than ten percent. The current law also does not provide for a
notice if the renewal policy will be subject to an increased
deductible or a change in classification with regard to payments of
dividends that may result in a reduction in the dividends paid.

Instead, businesses with worker's compensation policies often receive
the bill for their renewal policy just days before the effective date,
only to find that the premium has increased substantially, or the
deductible has increased or the dividend payment has decreased.  Since
the policyholders were not given any advance notice, they have lost
the opportunity to look for alternative coverage and must renew their
policy at the new, higher rate, or other unfavorable terms. This
legislation will provide worker's compensation policy holders the same
60-120 day renewal notice period afforded to commercial policy holders
when significant adjustments are being made to the proposed new
policy.

LEGISLATIVE HISTORY:

S.7268 (2013-2014)

FISCAL IMPLICATIONS:


To be determined.

EFFECTIVE DATE:

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.

2015-S4399 - Bill Text download pdf

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

                                  4399

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 18, 2015
                               ___________

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.

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

S. 4399                             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.

S. 4399                             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.

2015-S4399A (ACTIVE) - Details

See Assembly Version of this Bill:: A2948
Current Committee:: Senate Rules
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §54, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7268, A9224
2017-2018: S1005, A1620

2015-S4399A (ACTIVE) - Summary

Relates to providing conditional renewal notices to policyholders; at least thirty days notice.

2015-S4399A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4399A

 TITLE OF BILL :  An act to amend the workers' compensation law, in
relation to providing conditional renewal notices to policyholders

 PURPOSE :

The purpose of this bill is to require that insurance carriers provide
conditional renewal notices to workers' compensation policyholders
when the premium will increase more than ten percent upon renewal with
an affiliated insurance company that is under common control with the
previous insurer.

 SUMMARY OF PROVISIONS :

This legislation amends the workers' compensation law by adding a
subdivision 5b to section 54 of the workers compensation law

 JUSTIFICATION :

Under current Insurance Law Section 3426(e), commercial policyholders
are entitled to receive a conditional renewal notice 6o to 120 days in
advance of the expiration date of their policy if the premium for
their renewal policy will increase by more than ten percent.

The law requiring such notices protects the customer by affording the

opportunity to look for alternative coverage before their current
policy expires.

Unfortunately, the rules for workers' compensation policies are not
the same. A worker's compensation carrier is not required to provide
any notice to a policyholder when the renewal premium will increase by
more than ten percent.

Instead, businesses with worker's compensation policies often receive
the bill for their renewal policy just days before the effective date,
only to find that the premium has increased substantially. This type
of increase in premiums happens most frequently when the renewal is
being offered through a different insurer that is affiliated with the
insurer that provided the expiring policy.

Since the policyholders were not given any advance notice, they have
lost the opportunity to look for alternative coverage and must renew
their policy at the new, higher rate. This legislation will provide
worker's compensation policy holders 3o days advance notice when their
workers' compensation premium will increase by more than 10 percent
upon renewal and the policy is being renewed by another affiliated
insurer that is under common control with the insurer that wrote the
expiring policy. This will give them the opportunity to shop for
alternative coverage that may be more affordable.

 LEGISLATIVE HISTORY :

A.9224/S.7268 2013-2014

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
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

2015-S4399A (ACTIVE) - Bill Text download pdf

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

                                 4399--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 18, 2015
                               ___________

Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor  --  recommitted  to
  the  Committee  on  Labor  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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.  (A)  Cancellation  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-payment of  premiums  and
assessments, such cancellation shall not be effective until at least ten
days  after  a notice of cancellation of such contract, on a date speci-
fied 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 cancella-
tion 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04642-03-6

S. 4399--A                          2

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-
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.
  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.
  (B) CONDITIONAL RENEWAL. A CONTRACT OF INSURANCE SHALL REMAIN IN  FULL
FORCE  AND  EFFECT  SUBJECT  TO THE SAME TERMS AND CONDITIONS, LOSS COST
MULTIPLIERS AND CLASSIFICATION  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 DELIVERED BY THE INSURANCE  CARRIER  TO  THE
EMPLOYER,  AT  THE  ADDRESS  SHOWN ON THE POLICY, AND TO SUCH EMPLOYER'S
AUTHORIZED AGENT OR BROKER, INDICATING THE INSURANCE CARRIER'S INTENTION
TO CONDITION RENEWAL UPON ISSUANCE OF A POLICY THAT SUPERSEDES A  POLICY
PREVIOUSLY ISSUED BY ANOTHER INSURANCE CARRIER UNDER COMMON CONTROL THAT
WILL  RESULT IN AN INCREASED PREMIUM 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, CONTRACTOR CREDIT ADJUSTMENT
PROGRAM,  DRUG  FREE  CREDIT,  MERIT  RATING, MANAGED CARE CREDIT, LARGE
DEDUCTIBLE, RETROSPECTIVE RATING OR AUDIT). SUCH NOTICE SHALL BE  MAILED
OR  DELIVERED  AT LEAST THIRTY DAYS IN ADVANCE OF THE EXPIRATION DATE OF
THE POLICY, AND SHALL SET FORTH THE AMOUNT OF THE PREMIUM INCREASE  (OR,
WHERE  SUCH  AMOUNT  CANNOT  REASONABLY BE DETERMINED AS OF THE TIME THE
NOTICE IS PROVIDED, A REASONABLE ESTIMATE OF THE PREMIUM INCREASE  BASED
UPON  THE  INFORMATION AVAILABLE TO THE INSURANCE CARRIER AT THAT TIME).
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

S. 4399--A                          3

DELIVERED WRITTEN NOTICE THAT THE POLICY HAS  BEEN  REPLACED  OR  IS  NO
LONGER DESIRED.
  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.

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Senate Bill S4399A

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

May 24, 2016 - Labor Committee Vote

Labor Committee Vote: May 24, 2016

Bill Amendments

2015-S4399 - Details

2015-S4399 - Summary

2015-S4399 - Sponsor Memo

2015-S4399 - Bill Text download pdf

2015-S4399A (ACTIVE) - Details

2015-S4399A (ACTIVE) - Summary

2015-S4399A (ACTIVE) - Sponsor Memo

2015-S4399A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4399A

Share this bill

Sponsored By

Joseph E. Robach

Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

2015-S4399 - Details

2015-S4399 - Summary

2015-S4399 - Sponsor Memo

2015-S4399 - Bill Text download pdf

2015-S4399A (ACTIVE) - Details

2015-S4399A (ACTIVE) - Summary

2015-S4399A (ACTIVE) - Sponsor Memo

2015-S4399A (ACTIVE) - Bill Text download pdf

Comments