Bill Text: NY S01898 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to consideration of an employer's loss experience in rate setting and liability for compensation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-06-17 - COMMITTED TO RULES [S01898 Detail]

Download: New_York-2015-S01898-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1898
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   January 15, 2015
                                      ___________
       Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
         printed to be committed to the Committee on Labor
       AN ACT to amend the workers' compensation law and the insurance law,  in
         relation  to  consideration  of  an employer's loss experience in rate
         setting; and to amend the workers' compensation law,  in  relation  to
         liability for compensation
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 1 of section 89 of  the  workers'  compensation
    2  law,  as  amended by chapter 135 of the laws of 1998, is amended to read
    3  as follows:
    4    1. Employments and employees in the state fund shall be  divided  into
    5  such  groups and classes as shall be equitable based upon differences of
    6  industry or hazard for the purpose of  establishing  premium  rates  for
    7  workers'  compensation insurance, and for such purpose a system of merit
    8  rating [may] SHALL be employed which shall take account of the  peculiar
    9  hazard  of each individual risk AND AN EMPLOYER'S LOSS EXPERIENCE DURING
   10  THE MOST RECENT RATING PLAN PERIOD; PROVIDED,  HOWEVER  THAT  SUCH  LOSS
   11  EXPERIENCE  SHALL NOT INCLUDE PAYMENT ON ANY CLAIMS WHERE THE INJURY WAS
   12  DETERMINED TO BE THE FAULT OF ANOTHER PARTY.  Such premiums in the state
   13  fund shall be fixed at the lowest possible  rates  consistent  with  the
   14  maintenance of a solvent fund and of reasonable reserves and surplus.
   15    S 2. Subsection (a) of section 2304 of the insurance law is amended to
   16  read as follows:
   17    (a)  In  the making of rates, consideration shall be given to past and
   18  prospective loss experience, including the conflagration and catastrophe
   19  hazards, if any, both within and without  this  state,  to  all  factors
   20  reasonably  attributable  to the class of risks, to a reasonable profit,
   21  to past and prospective expenses both country-wide and  those  specially
   22  applicable  to  this state, and in the case of participating insurers to
   23  policyholders' dividends, savings or unabsorbed premium deposits allowed
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03340-01-5
       S. 1898                             2
    1  or returned to policyholders, members or subscribers.  IN THE MAKING  OF
    2  RATES  FOR WORKERS' COMPENSATION INSURANCE, IN ADDITION TO THE FOREGOING
    3  CONSIDERATION SHALL BE GIVEN TO EACH INDIVIDUAL EMPLOYER'S LOSS  EXPERI-
    4  ENCE  DURING  THE  MOST  RECENT RATING PLAN; PROVIDED, HOWEVER THAT SUCH
    5  LOSS EXPERIENCE SHALL NOT  INCLUDE  CONSIDERATION  OF  PAYMENTS  ON  ANY
    6  CLAIMS WHERE THE INJURY WAS DETERMINED TO BE THE FAULT OF ANOTHER PARTY.
    7    S  3. Subdivision 1 of section 10 of the workers' compensation law, as
    8  amended by chapter 924 of the laws  of  1990,  is  amended  to  read  as
    9  follows:
   10    1.  Every  employer  subject  to this chapter shall in accordance with
   11  this chapter, except as  otherwise  provided  in  section  twenty-five-a
   12  hereof,  secure compensation to his employees and pay or provide compen-
   13  sation for their disability or death from injury arising out of  and  in
   14  the  course  of the employment without regard to fault as a cause of the
   15  injury, except that there shall be no liability for  compensation  under
   16  this  chapter when the injury has been solely occasioned by intoxication
   17  from alcohol or a controlled substance of the injured employee while  on
   18  duty;  or by wilful intention of the injured employee to bring about the
   19  injury or death of himself or another; or where the injury was sustained
   20  in or caused by voluntary participation in an off-duty athletic activity
   21  not constituting part of the employee's work related duties  unless  the
   22  employer  (a) requires the employee to participate in such activity, (b)
   23  compensates the employee for  participating  in  such  activity  or  (c)
   24  otherwise  sponsors the activity; OR WHERE THE INJURY WAS SUSTAINED IN A
   25  MOTOR VEHICLE ACCIDENT WHICH WAS DETERMINED TO BE THE FAULT OF  A  PARTY
   26  OTHER THAN THE EMPLOYEE OR THE EMPLOYER, TO THE EXTENT THAT COMPENSATION
   27  CAN BE OBTAINED THROUGH THE LIABILITY COVERAGE OF SUCH PERSON.
   28    S  4. This act shall take effect on the first of January next succeed-
   29  ing the date on which it shall have become a law.