Bill Text: NY S02834 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to the requirement for policyholders to provide notice to withdraw from the state insurance fund.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-01-03 - REFERRED TO LABOR [S02834 Detail]

Download: New_York-2023-S02834-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2834

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 25, 2023
                                       ___________

        Introduced  by Sens. BRESLIN, GALLIVAN, MATTERA, MAYER -- 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 the
          requirement for policyholders to provide 30-days  notice  to  withdraw
          from the state insurance fund

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision a of section 94 of  the  workers'  compensation
     2  law,  as  amended by chapter 635 of the laws of 1996, is amended to read
     3  as follows:
     4    a.  Any employer may, upon complying with subdivision two or three  of
     5  section  fifty of this chapter, withdraw from the fund by turning in his
     6  insurance contract for  cancellation,  provided  he  has  given  written
     7  notice  to  the  fund  of his intention to withdraw not less than thirty
     8  days before the effective date of such cancellation.   Upon  receipt  of
     9  such  notice  the  fund  shall, at least ten days prior to the effective
    10  date file in the office of the chairman a notice  of  such  cancellation
    11  date.
    12    In  no event shall the insurance contract be deemed cancelled until at
    13  least ten days after the date of such filing, any earlier date mentioned
    14  in the notice to the contrary notwithstanding.
    15    If an employer withdraws from the fund upon complying with subdivision
    16  two of section fifty of this chapter, the new  insurance  contract  with
    17  the stock corporation, mutual corporation or reciprocal insurer shall be
    18  deemed  not  to  take  effect  until the cancellation of such employer's
    19  contract with the state insurance fund has become effective.
    20    The requirements of this subdivision shall not apply when an  employer
    21  has given written notice to the fund of his intention to withdraw, which
    22  shall include the effective date of such cancellation and proof that the
    23  employer  has  complied  with  subdivision  two of section fifty of this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06360-01-3
        S. 2834                             2

     1  chapter. The effective date of cancellation of such employer's  contract
     2  with  the  state insurance fund shall be the date that the new insurance
     3  contract with the stock corporation, mutual  corporation  or  reciprocal
     4  insurer takes effect.
     5    §  2.  This  act shall take effect on the ninetieth day after it shall
     6  have become a law.