Bill Text: NY S00428 | 2017-2018 | 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: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2018-05-22 - REPORTED AND COMMITTED TO FINANCE [S00428 Detail]

Download: New_York-2017-S00428-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           428
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by Sens. SEWARD, GALLIVAN -- 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.    In the event that an employer intends to withdraw from the fund
    12  and has secured insurance with another insurance carrier,  the  employer
    13  shall  provide  written  notice  to  the  fund which shall include their
    14  intention to withdraw, demonstration that the employer has secured a new
    15  insurance policy and the effective date of cancellation which  shall  be
    16  the date of when such other coverage becomes effective.
    17    [In no event shall the insurance contract be deemed cancelled until at
    18  least ten days after the date of such filing, any earlier date mentioned
    19  in the notice to the contrary notwithstanding.]
    20    If an employer withdraws from the fund upon complying with subdivision
    21  two  of  section  fifty of this chapter, the new insurance contract with
    22  the stock corporation, mutual corporation or reciprocal insurer shall be
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04630-01-7
        S. 428                              2
     1  deemed not to take effect until  the  cancellation  of  such  employer's
     2  contract with the state insurance fund has become effective.
     3    §  2.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.