What's happening
The bill allows employers to cancel State Insurance Fund coverage immediately upon obtaining other insurance, with proper written notice.
Why it matters
Reduces administrative burdens for employers. by allowing them to end State Insurance Fund coverage immediately upon securing other insurance, instead of waiting for a 30-day notice period, which can make transitions to new policies more flexible and responsive.
Potentially lowers costs for businesses. by preventing overlapping insurance payments during the transition between providers, as employers can align the cancellation of State Fund coverage precisely with the start of their new policy.
Increases employer control over insurance decisions. by removing the mandatory waiting period and some procedural delays, which may help businesses better manage their risk and coverage needs during periods of change or growth.
Could impact the State Insurance Fund’s financial planning and risk pool. since quicker exits by employers may affect how the Fund manages its reserves and administrative processes, possibly shifting more responsibility for timely notification and record-keeping onto both employers and the Fund.
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Who cares
Employers insured by the State Insurance Fund
Those switching carriers would have to give written notice showing they have secured a new policy and specifying cancellation on the date the replacement coverage becomes effective.
State Insurance Fund
The bill would retain the 30-day withdrawal notice requirement but remove the rule preventing cancellation until at least ten days after the fund files notice with the chairman.
Workers’ compensation insurance carriers
Carriers taking over an employer’s coverage would be affected by the requirement to align the fund’s cancellation date with the effective date of replacement coverage.
Headline styles
Notice for Insurance Withdrawal
Plain English, a few words. Used as the page title.
Sponsors
History
- 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.
Require 30-Day Withdrawal Notice
In Senate Committee · Finance · Sponsor James L. Seward
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1598
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. ZEBROWSKI, GUNTHER, HAWLEY, SCHIMMINGER, DiPIE- TRO, SKOUFIS -- Multi-Sponsored by -- M. of A. KEARNS -- read once and referred 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 Assembly, do enact as follows:
Section 1. Subdivision a of section 94 of the workers' compensation law, as amended by chapter 635 of the laws of 1996, is amended to read as follows:
a. Any employer may, upon complying with subdivision two or three of section fifty of this chapter, withdraw from the fund by turning in his insurance contract for cancellation, provided he has given written notice to the fund of his intention to withdraw not less than thirty days before the effective date of such cancellation. Upon receipt of such notice the fund shall, at least ten days prior to the effective date file in the office of the chairman a notice of such cancellation date. In the event that an employer intends to withdraw from the fund and has secured insurance with another insurance carrier, the employer shall provide written notice to the fund which shall include their intention to withdraw, demonstration that the employer has secured a new insurance policy and the effective date of cancellation which shall be the date of when such other coverage becomes effective.
[In no event shall the insurance contract be deemed cancelled until at least ten days after the date of such filing, any earlier date mentioned in the notice to the contrary notwithstanding.]
If an employer withdraws from the fund upon complying with subdivision two of section fifty of this chapter, the new insurance contract with 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
A. 1598 2
deemed not to take effect until the cancellation of such employer's contract with the state insurance fund has become effective.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.