S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6196
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 14, 2021
                                ___________
 
 Introduced  by  Sen. KRUEGER -- 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  allowing
   the  New  York  state  insurance  fund  to  enter into agreements with
   private insurance providers to cover out-of-state work

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 76 of the workers' compensation law is amended by
 adding a new subdivision 1-a to read as follows:
   1-A. A. THE PURPOSES OF THE STATE INSURANCE FUND ARE  HEREBY  ENLARGED
 TO  PERMIT  IT TO ENTER AGREEMENTS WITH INSURERS LICENSED TO WRITE WORK-
 ERS' COMPENSATION INSURANCE IN STATES OUTSIDE NEW YORK TO ISSUE POLICIES
 TO STATE INSURANCE  FUND  POLICYHOLDERS  COVERING  THOSE  POLICYHOLDERS'
 OBLIGATIONS  TO  SECURE  THE  PAYMENT  OF WORKERS' COMPENSATION BENEFITS
 UNDER THE LAWS OF STATES OTHER THAN NEW YORK. THE STATE  INSURANCE  FUND
 SHALL  ALSO  BE AUTHORIZED TO RECEIVE PREMIUMS INTO ITS WORKERS' COMPEN-
 SATION FUND FOR POLICIES WRITTEN UNDER SUCH AGREEMENTS AND TO  PAY  FROM
 SUCH  FUND: (I) REIMBURSEMENT OF ALL LOSSES AND LOSS ADJUSTMENT EXPENSES
 UNDER SUCH POLICIES; AND (II) FEES AND OTHER COSTS,  INCLUDING  BUT  NOT
 LIMITED  TO  THOSE FOR CLAIMS SERVICES, RELATING TO SUCH AGREEMENTS.  AN
 AGREEMENT UNDER THIS SUBDIVISION SHALL  NOT  INCLUDE  THE  PROVISION  OF
 CLAIMS SERVICES FOR ANY CLAIM UNDER THIS CHAPTER.
   B.  FOR  A  POLICYHOLDER  TO BE ELIGIBLE FOR INSURANCE IN STATES OTHER
 THAN NEW YORK PROVIDED THROUGH AGREEMENTS ENTERED INTO UNDER THIS SUBDI-
 VISION, EITHER: (I) THE POLICYHOLDER'S  WORKERS'  COMPENSATION  PREMIUMS
 WITH  THE STATE INSURANCE FUND COVERING ITS EMPLOYEES UNDER THIS CHAPTER
 MUST BE GREATER THAN THE PREMIUMS CHARGED TO  COVER  THE  POLICYHOLDER'S
 OBLIGATIONS  TO PAY WORKERS' COMPENSATION BENEFITS IN ALL STATES, IN THE
 AGGREGATE, OTHER THAN NEW YORK WHEN COVERED UNDER  SUCH  AGREEMENTS;  OR
 (II)  THE  PAYROLL FOR THE POLICYHOLDER'S OPERATIONS IN NEW YORK MUST BE
 GREATER THAN THE POLICYHOLDER'S PAYROLL IN ALL STATES, IN THE AGGREGATE,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10883-01-1

 S. 6196                             2
 
 OTHER THAN NEW YORK WHEN COVERED UNDER SUCH  AGREEMENTS  FOR  THE  PRIOR
 POLICY  PERIOD.  FOR  DETERMINING ELIGIBILITY, "PREMIUMS" MEAN ESTIMATED
 PREMIUMS AS DETERMINED BY THE STATE INSURANCE FUND AT THE  BEGINNING  OF
 THE  POLICY  PERIOD.  IN ADDITION, FOR A POLICYHOLDER TO BE ELIGIBLE FOR
 INSURANCE IN STATES OTHER THAN NEW  YORK  THROUGH  THE  STATE  INSURANCE
 FUND, THE POLICYHOLDER MUST MEET THE STATE INSURANCE FUND'S UNDERWRITING
 CRITERIA  FOR OTHER STATES COVERAGE AS SPECIFIED BY RULES OF THE COMMIS-
 SIONERS.
   § 2. This act shall take effect immediately.