Bill Text: NY A07504 | 2021-2022 | General Assembly | Introduced

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Bill Title: Allows the New York state insurance fund to enter into agreements with private insurance providers licensed 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2021-06-02 - substituted by s6196 [A07504 Detail]

Download: New_York-2021-A07504-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7504

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      May 12, 2021
                                       ___________

        Introduced by M. of A. JOYNER -- read once and referred 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:

     1    Section 1. Section 76 of the workers' compensation law is  amended  by
     2  adding a new subdivision 1-a to read as follows:
     3    1-a.  a.  The purposes of the state insurance fund are hereby enlarged
     4  to permit it to enter agreements with insurers licensed to  write  work-
     5  ers' compensation insurance in states outside New York to issue policies
     6  to  state  insurance  fund  policyholders  covering those policyholders'
     7  obligations to secure the  payment  of  workers'  compensation  benefits
     8  under  the  laws of states other than New York. The state insurance fund
     9  shall also be authorized to receive premiums into its  workers'  compen-
    10  sation  fund  for policies written under such agreements and to pay from
    11  such fund: (i) reimbursement of all losses and loss adjustment  expenses
    12  under  such  policies;  and (ii) fees and other costs, including but not
    13  limited to those for claims services, relating to such agreements.    An
    14  agreement  under  this  subdivision  shall  not include the provision of
    15  claims services for any claim under this chapter.
    16    b. For a policyholder to be eligible for  insurance  in  states  other
    17  than New York provided through agreements entered into under this subdi-
    18  vision,  either:  (i)  the policyholder's workers' compensation premiums
    19  with the state insurance fund covering its employees under this  chapter
    20  must  be  greater  than the premiums charged to cover the policyholder's
    21  obligations to pay workers' compensation benefits in all states, in  the
    22  aggregate,  other  than  New York when covered under such agreements; or
    23  (ii) the payroll for the policyholder's operations in New York  must  be
    24  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
        A. 7504                             2

     1  other  than  New  York  when covered under such agreements for the prior
     2  policy period. For determining eligibility,  "premiums"  mean  estimated
     3  premiums  as  determined by the state insurance fund at the beginning of
     4  the  policy  period.  In addition, for a policyholder to be eligible for
     5  insurance in states other than New  York  through  the  state  insurance
     6  fund, the policyholder must meet the state insurance fund's underwriting
     7  criteria  for other states coverage as specified by rules of the commis-
     8  sioners.
     9    § 2. This act shall take effect immediately.