Bill Text: NY S05327 | 2025-2026 | 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) 2025-02-20 - REFERRED TO LABOR [S05327 Detail]

Download: New_York-2025-S05327-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5327

                               2025-2026 Regular Sessions

                    IN SENATE

                                    February 20, 2025
                                       ___________

        Introduced  by  Sens. BAILEY, 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
     6  [his] their insurance contract for cancellation, provided [he has]  they
     7  have  given written notice to the fund of [his] their intention to with-
     8  draw not less than thirty days before the effective date of such cancel-
     9  lation.  Upon receipt of such notice the fund shall, at least  ten  days
    10  prior to the effective date file in the office of the [chairman] chair a
    11  notice of such cancellation 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 their intention to withdraw,
    22  which shall include the effective date of such  cancellation  and  proof
    23  that  the employer has complied with subdivision two of section fifty of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09816-01-5
        S. 5327                             2

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