S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7505
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 12, 2021
                                ___________
 
 Introduced by M. of A. JOYNER -- read once and referred to the Committee
   on Labor
 
 AN  ACT to amend the workers' compensation law and the insurance law, in
   relation to specifying methods of calculating  deposits  and  reserves
   for the aggregate trust fund and reserves of the state insurance fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 5 of section 27 of  the  workers'  compensation
 law,  as amended by chapter 6 of the laws of 2007, is amended to read as
 follows:
   5. All computations made OR DIRECTED by the board shall  be  upon  the
 basis  of (I) the survivorship annuitants table of mortality, the remar-
 riage tables of the Dutch  Royal  Insurance  Institution  APPLICABLE  TO
 CLAIMS  FOR  ACCIDENTS OCCURRING ON OR BEFORE DECEMBER THIRTY-FIRST, TWO
 THOUSAND TWENTY-ONE, AND (II)  BEGINNING  JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-TWO,  AND  ON  JANUARY  FIRST  OF EACH TENTH YEAR THEREAFTER, THE
 UNITED STATES LIFE TABLE FOR  THE  TOTAL  POPULATION  PUBLISHED  BY  THE
 DEPARTMENT  OF  HEALTH  AND  HUMAN  SERVICES  AND  THE  REMARRIAGE TABLE
 PUBLISHED BY THE UNITED STATES RAILROAD RETIREMENT BOARD  APPLICABLE  TO
 CLAIMS  FOR  ACCIDENTS  OCCURRING  ON OR AFTER JANUARY FIRST OF THE YEAR
 FOLLOWING THE ADOPTION OF ANY REVISION OF SUCH  TABLES  AS  PROVIDED  IN
 THIS SUBDIVISION and interest at three and one-half per centum per annum
 on  claims based on accidents occurring up to and including June thirti-
 eth, nineteen hundred thirty-nine, at three  per  centum  per  annum  on
 claims  based  on  accidents occurring from July first, nineteen hundred
 thirty-nine up to and including August  thirty-first,  nineteen  hundred
 eighty-three,  at  six per centum per annum on claims based on accidents
 occurring from September first, nineteen hundred eighty-three up to  and
 including December thirty-first, two thousand and at the industry stand-
 ard  rate  on claims based on accidents occurring thereafter, except (a)
 that computations of present values of death  benefits  required  to  be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10882-01-1

 A. 7505                             2
 
 paid  into  the  aggregate trust fund by an insurance carrier which is a
 stock corporation or a mutual association shall be based, in the case of
 a dependent parent, grandparent, blind or physically disabled  child  or
 spouse,  upon said table of mortality disregarding possible change in or
 termination of dependency, with  interest  at  three  and  one-half  per
 centum  per  annum  on  claims  based  on  accidents occurring up to and
 including June thirtieth, nineteen hundred  thirty-nine,  at  three  per
 centum per annum on claims based on accidents occurring from July first,
 nineteen  hundred  thirty-nine  up to and including August thirty-first,
 nineteen hundred eighty-three, at six per centum  per  annum  on  claims
 based  on  accidents  occurring  from  September first, nineteen hundred
 eighty-three up to and including December thirty-first, two thousand and
 at the industry standard rate on claims  based  on  accidents  occurring
 thereafter  and  (b)  that  computations  of present values of permanent
 partial disability benefits awarded for a definite number of weeks shall
 be on the basis of annuities certain with interest at three and one-half
 per centum per annum on claims based on accidents occurring  up  to  and
 including  June  thirtieth,  nineteen  hundred thirty-nine, at three per
 centum per annum on claims based on accidents occurring from July first,
 nineteen hundred thirty-nine up to and  including  August  thirty-first,
 nineteen  hundred  eighty-three,  at  six per centum per annum on claims
 based on accidents occurring  from  September  first,  nineteen  hundred
 eighty-three up to and including December thirty-first, two thousand and
 at  the  industry  standard  rate on claims based on accidents occurring
 thereafter.
   § 2. The closing paragraph of subdivision 7 of section 27 of the work-
 ers' compensation law, as amended by chapter 6 of the laws of  2007  and
 as further amended by section 104 of part A of chapter 62 of the laws of
 2011, is amended to read as follows:
   Such  additional  payments  shall be required until the surplus of the
 fund equals or exceeds one per centum  of  the  total  outstanding  loss
 reserves  as shown by three successive annual reports of the fund to the
 superintendent of financial services and such additional  payment  shall
 be  required as a payment upon each award based on an accident occurring
 prior to July first next succeeding the third such  annual  report,  but
 not  as  a  payment  upon any award based on an accident occurring on or
 after said July first; provided, however, that if and when  the  surplus
 of  the fund as shown by any annual report thereafter shall be less than
 one per centum of the total outstanding loss reserves,  then  the  addi-
 tional  payments as provided in paragraphs (a), (b), (c) and (d) of this
 subdivision shall be resumed and shall be payable upon any  award  based
 on  an  accident  occurring  on  or after July first next succeeding the
 close of the year for which such annual report is made. Thereafter,  the
 suspension  or  resumption  of  additional  payments as required by this
 subdivision shall be governed by the  foregoing  provisions.  Such  loss
 reserves  shall  be computed based upon the tables specified in subdivi-
 sion five of this section APPLICABLE TO THE CALCULATION OF  THE  DEPOSIT
 FOR  THE CLAIM ON WHICH SUCH DEPOSIT IS BASED and interest at a standard
 to be determined by the superintendent of financial  services  by  regu-
 lation.
   §  3. Section 86 of the workers' compensation law, as amended by chap-
 ter 7 of the laws of 1989 and as further amended by section 104 of  part
 A of chapter 62 of the laws of 2011, is amended to read as follows:
   §  86. Catastrophe surplus and reserves for workers' compensation. Ten
 per centum of the premiums collected from employers insured in the  fund
 for  workers'  compensation  shall  be  set  aside for the creation of a

 A. 7505                             3
 
 surplus until such surplus shall amount to the sum of one hundred  thou-
 sand  dollars,  and  thereafter  five per centum of such premiums, until
 such time as in the judgment of the commissioners such surplus shall  be
 sufficiently  large  to  cover  the  catastrophe  hazard. Thereafter the
 contribution to such surplus may be reduced or discontinued  conditional
 upon constant maintenance of a sufficient surplus to cover the catastro-
 phe  hazard.  Reserves  shall  be set up and maintained adequate to meet
 anticipated losses and carry all claims and policies to maturity,  which
 reserves  shall  be  computed  [to  reflect  the present values, at five
 percent interest per annum, of the determined and estimated unpaid loss-
 es, and other requirements computed in accordance  with  such  rules  as
 shall  be approved by the superintendent of financial services] PURSUANT
 TO SUBSECTIONS (D) AND (E) OF SECTION FOUR THOUSAND ONE  HUNDRED  SEVEN-
 TEEN OF THE INSURANCE LAW.
   §  4.  Subsection (c) of section 1108 of the insurance law, as amended
 by section 38 of part SS of chapter 54 of the laws of 2016,  is  amended
 to read as follows:
   (c)  The  state  insurance  fund  of  this  state,  except  as  to the
 provisions of subsection (d) of section two thousand three hundred thir-
 ty-nine, section three thousand one hundred ten, subsection  (a),  para-
 graph  one  of  subsection  (b),  paragraph  three of subsection (c) and
 subsection (d) of section three thousand two hundred one, sections three
 thousand two hundred two, three thousand two hundred  four,  subsections
 (a)  through  (d)  of  section  three  thousand  two hundred twenty-one,
 SUBSECTIONS (D) AND (E) OF SECTION FOUR THOUSAND ONE HUNDRED  SEVENTEEN,
 subsections  (b)  and  (c)  of section four thousand two hundred twenty-
 four, section four thousand two hundred twenty-six and  subsections  (a)
 and  (b),  (g) through (j), and (n) of section four thousand two hundred
 thirty-five  of  this  chapter  and  except  as  otherwise  specifically
 provided by the laws of this state.
   §  5.  Subsection (e) of section 4117 of the insurance law, as amended
 by chapter 11 of the laws of 1986, is amended to read as follows:
   (e) Whenever in the judgment of the superintendent, the loss and  loss
 expense  reserves of any property/casualty insurance company doing busi-
 ness in this state OR OF THE STATE INSURANCE FUND OF THIS  STATE  calcu-
 lated  in  accordance  with  the  foregoing provisions are inadequate or
 excessive, [he] THE SUPERINTENDENT may prescribe any other basis [which]
 THAT will produce adequate and reasonable reserves.
   § 6. This act shall take effect January 1, 2022.