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History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1193
- Print number 4399a
- Amend and recommit to labor
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to providing conditional renewal notices to policyholders
In Senate Committee · Rules · Sponsor Andrew Hevesi
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to providing conditional renewal notices to policyholders
Purpose
The purpose of this bill is to require that insurance carriers provide conditional renewal notices to workers' compensation policyholders when the premium will increase more than ten percent upon renewal with an affiliated insurance company that is under common control with the previous insurer.
Summary of provisions
This legislation amends the workers' compensation law by adding a subdivision 5b to section 54 of the workers compensation law
Justification
Under current Insurance Law Section 3426(e), commercial policyholders are entitled to receive a conditional renewal notice 6o to 120 days in advance of the expiration date of their policy if the premium for their renewal policy will increase by more than ten percent.
The law requiring such notices protects the customer by affording the opportunity to look for alternative coverage before their current policy expires.
Unfortunately, the rules for workers' compensation policies are not the same. A worker's compensation carrier is not required to provide any notice to a policyholder when the renewal premium will increase by more than ten percent.
Instead, businesses with worker's compensation policies often receive the bill for their renewal policy just days before the effective date, only to find that the premium has increased substantially. This type of increase in premiums happens most frequently when the renewal is being offered through a different insurer that is affiliated with the insurer that provided the expiring policy.
Since the policyholders were not given any advance notice, they have lost the opportunity to look for alternative coverage and must renew their policy at the new, higher rate. This legislation will provide worker's compensation policy holders 3o days advance notice when their workers' compensation premium will increase by more than 10 percent upon renewal and the policy is being renewed by another affiliated insurer that is under common control with the insurer that wrote the expiring policy. This will give them the opportunity to shop for alternative coverage that may be more affordable.
Legislative history
A.9224/S.7268 2013-2014
Fiscal implications
To be determined.
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law, and shall apply to all policies issued or renewed on or after such effective date
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.