Bill Text: NY A01620 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to providing conditional renewal notices to policyholders; at least thirty days notice.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2017-12-18 - approval memo.40 [A01620 Detail]
Download: New_York-2017-A01620-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1620 2017-2018 Regular Sessions IN ASSEMBLY January 12, 2017 ___________ 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: 1 Section 1. Subdivision 5 of section 54 of the workers' compensation 2 law, as amended by section 23 of part GG of chapter 57 of the laws of 3 2013, is amended to read as follows: 4 5. (a) Cancellation and termination of insurance contracts. No 5 contract of insurance issued by an insurance carrier against liability 6 arising under this chapter shall be cancelled within the time limited in 7 such contract for its expiration unless notice is given as required by 8 this section. When cancellation is due to non-payment of premiums and 9 assessments, such cancellation shall not be effective until at least ten 10 days after a notice of cancellation of such contract, on a date speci- 11 fied in such notice, shall be filed in the office of the chair and also 12 served on the employer. When cancellation is due to any reason other 13 than non-payment of premiums and assessments, such cancellation shall 14 not be effective until at least thirty days after a notice of cancella- 15 tion of such contract, on a date specified in such notice, shall be 16 filed in the office of the chair and also served on the employer; 17 provided, however, in either case, that if the employer has secured 18 insurance with another insurance carrier which becomes effective prior 19 to the expiration of the time stated in such notice, the cancellation 20 shall be effective as of the date of such other coverage. No insurer 21 shall refuse to renew any policy insuring against liability arising 22 under this chapter unless at least thirty days prior to its expiration 23 notice of intention not to renew has been filed in the office of the 24 chair and also served on the employer. 25 Such notice shall be served on the employer by delivering it to him, 26 her or it or by sending it by mail, by certified or registered letter, 27 return receipt requested, addressed to the employer at his, her or its 28 last known place of business; provided that, if the employer be a part- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02654-01-7A. 1620 2 1 nership, then such notice may be so given to any of one of the partners, 2 and if the employer be a corporation then the notice may be given to any 3 agent or officer of the corporation upon whom legal process may be 4 served; and further provided that an employer may designate any person 5 or entity at any address to receive such notice including the desig- 6 nation of one person or entity to receive notice on behalf of multiple 7 entities insured under one insurance policy and that service of notice 8 at the address so designated upon the person or entity so designated by 9 delivery or by mail, by certified or registered letter, return receipt 10 requested, shall satisfy the notice requirement of this section. 11 Provided, however, the right to cancellation of a policy of insurance in 12 the state fund shall be exercised only for non-payment of premiums and 13 assessments or as provided in section ninety-four of this chapter. 14 The provisions of this subdivision shall not apply with respect to 15 policies containing coverage pursuant to subsection (j) of section three 16 thousand four hundred twenty of the insurance law relating to every 17 policy providing comprehensive personal liability insurance on a one, 18 two, three or four family owner-occupied dwelling. 19 In the event such cancellation or termination notice is not filed with 20 the chair within the required time period, the chair shall impose a 21 penalty in the amount of up to five hundred dollars for each ten-day 22 period the insurance carrier or state insurance fund failed to file the 23 notification. All penalties collected pursuant to this subdivision shall 24 be deposited in the uninsured employers' fund. 25 (b) Conditional renewal. A contract of insurance shall remain in full 26 force and effect subject to the same terms and conditions, loss cost 27 multipliers and classification of the employer with regard to the 28 payment of dividends, pursuant to sections four thousand one hundred six 29 and four thousand one hundred fourteen of the insurance law, unless 30 written notice is mailed or delivered by the insurance carrier to the 31 employer, at the address shown on the policy, and to such employer's 32 authorized agent or broker, indicating the insurance carrier's intention 33 to condition renewal upon issuance of a policy that supersedes a policy 34 previously issued by another insurance carrier under common control that 35 will result in an increased premium in excess of ten percent (exclusive 36 of any premium increase generated as a result of increased loss costs 37 filed and approved in accordance with subsection (e) of section two 38 thousand three hundred five of the insurance law, increased exposure 39 units, or as a result of experience rating, contractor credit adjustment 40 program, drug free credit, merit rating, managed care credit, large 41 deductible, retrospective rating or audit). Such notice shall be mailed 42 or delivered at least thirty days in advance of the expiration date of 43 the policy, and shall set forth the amount of the premium increase (or, 44 where such amount cannot reasonably be determined as of the time the 45 notice is provided, a reasonable estimate of the premium increase based 46 upon the information available to the insurance carrier at that time). 47 Nothing in this subdivision will require the insurance carrier to 48 provide such notice when the employer, an agent or broker authorized by 49 the employer, or another insurance carrier of the employer has mailed or 50 delivered written notice that the policy has been replaced or is no 51 longer desired. 52 § 2. This act shall take effect on the one hundred twentieth day after 53 it shall have become a law, and shall apply to all policies issued or 54 renewed on or after such effective date.
