NY State Senate Bill 2021-S4695

Senate Bill S4695

2021-2022 Legislative Session

Directs the state insurance fund to compensate licensed insurance producers for services provided to clients who obtain coverage through the fund

download bill text pdf

Archive: Last Bill Status - In Senate Committee Labor 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
Jan 05, 2022	referred to labor
Feb 09, 2021	referred to labor

2021-S4695 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §76, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7988
2019-2020: S3753
2023-2024: S2835

2021-S4695 (ACTIVE) - Summary

Directs the state insurance fund to compensate insurance brokers for services provided to clients who obtain coverage through the fund; establishes within the existing rate structure a factor to compensate licensed insurance producers for services provided to clients who obtain coverage through the fund.

2021-S4695 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4695

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the workers' compensation law, in relation to directing
the state insurance fund to compensate licensed insurance producers for
the services provided to clients who obtain coverage through the fund

 
PURPOSE:

This bill would provide commissions to licensed brokers for services
provided to clients who obtain coverage through the state insurance
fund.

 
SUMMARY OF PROVISIONS:

Section one amends section 76 of the workers' compensation law to
authorize state insurance fund to compensate licensed insurance brokers
for the services they provide to their clients who are insured in the
fund through the payment of commissions. The commissioners of state

insurance fund are authorized and directed to establish, within the
existing rate structure, a factor to compensate licensed insurance
producers for the services provided to their clients who obtain coverage
through the fund.

Section two establishes the effective date.

 
EXISTING LAW:

Currently, the state insurance fund does not provide commissions to
insurance producers who bring business to the state.

 
JUSTIFICATION:

The state insurance fund (NYSIF) was created in 1914 to ensure workers'
compensation insurance was available to any business entity in the
state. The fund, established as self-supporting, is required under the
workers' compensation law to provide the lowest premiums for workers'
compensation insurance and disability benefits. NYSIF competes against
private insurance carriers in the admitted market, yet it has a clear
market advantage. Under current law, NYSIF is not required to provide
commissions to licensed brokers, which bring in new cliental.

This bill would expand the NYSIF purpose to provide for an appropriate
commission schedule to pay licensed brokers for services to their
clients who obtain coverage through the fund. Most of PIANYs members who
deal in workers compensation insurance place their customers with NYSIF.

While their business may be a small percentage of NYSIFs policies, NYSIF
policies represent a large percentage of their business. A significant
number of workers compensation policies independent agents write are in
the SIR If the clients go direct to NYSIF, they miss certain advantages
a broker can bring them, including periodically shopping that account to
get a better rate. NYSIF effectively uses the producer to capture busi-
ness without compensation, whereas the voluntary market recognizes that
the producers' efforts are part of the package, and therefore pays a
commission. Both the New York Property Insurance Underwriting Associ-

ation NYPIUA) and the state automobile insurance fund pay commissions to
producers, this bill would create parity within the NYSIF.

 
LEGISLATIVE HISTORY:

2019-20 - S.3753 - REFERRED TO LABOR

2017-18 - S.7988

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4695 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4695
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 9, 2021
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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  directing
   the  state  insurance  fund to compensate licensed insurance producers
   for the services provided to clients who obtain coverage  through  the
   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 76 of  the  workers'  compensation
 law is renumbered subdivision 6 and a new subdivision 5 is added to read
 as follows:
   5.  THE  PURPOSES  OF  SUCH  STATE  INSURANCE  FUND ARE HEREBY FURTHER
 ENLARGED TO PERMIT IT TO COMPENSATE LICENSED INSURANCE BROKERS  FOR  THE
 SERVICES  THEY PROVIDE THEIR CLIENTS WHO ARE INSURED IN THE FUND THROUGH
 THE PAYMENT OF COMMISSIONS. THE COMMISSIONERS  OF  THE  STATE  INSURANCE
 FUND  ARE HEREBY AUTHORIZED AND DIRECTED TO ESTABLISH, WITHIN THE EXIST-
 ING RATE STRUCTURE, A FACTOR TO COMPENSATE LICENSED INSURANCE  PRODUCERS
 FOR  THE  SERVICES PROVIDED TO THEIR CLIENTS WHO OBTAIN COVERAGE THROUGH
 THE FUND.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09513-01-1

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