What's happening
The bill amends the workers' compensation law to require a judgment for unpaid premiums before employers are barred from obtaining new state insurance fund policies.
Why it matters
Establishes due process for employers by requiring a court judgment for unpaid premiums before they are barred from obtaining new workers' compensation insurance from the State Insurance Fund. This change ensures that employers are not penalized based on disputed or unresolved billing issues, but only after a legal determination of liability.
Limits the State Insurance Fund's ability to deny coverage to businesses and individuals associated with employers who have unpaid premiums. but only if a court judgment has confirmed the debt. This replaces the previous standard, which allowed denial based solely on outstanding bills, potentially reducing wrongful denials.
May affect how quickly the State Insurance Fund can collect unpaid premiums and control risk. , since it must now go through the court system to obtain a judgment before restricting access to insurance for delinquent employers and related parties. This introduces an additional step before enforcement actions can be taken.
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Who cares
Headline styles
Bar Insurers From Repeat Defaulters
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Block Defaulted Insurance Policies
In Senate Committee · Labor · Sponsor Kenneth P. LaValle
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 3529 A. 3032
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 24, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to the collection of premium in case of default
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 93 of the workers' compensation law, as amended by section 24 of part GG of chapter 57 of the laws of 2013, is amended to read as follows:
§ 93. Collection of premium in case of default. a. If a policyholder shall default in any payment required to be made by him or her to the state insurance fund after due notice, his or her insurance in the state fund may be cancelled and the amount due from him or her shall be collected by civil action brought against him or her in any county wherein the state insurance fund maintains an office in the name of the commissioners of the state insurance fund and the same when collected, shall be paid into the state insurance fund, and such policyholder's compliance with the provisions of this chapter requiring payments to be made to the state insurance fund shall date from the time of the payment of said money to the state insurance fund.
b. An employer, whose policy of insurance has been cancelled by the state insurance fund for non-payment of premium and assessments evidenced by a judgment holding the employer liable for such payments pursuant to the civil action defined in subdivision a of this section or withdraws pursuant to section ninety-four of this article, is ineligible to contract for a subsequent policy of insurance with the state insurance fund while the billed premium on the cancelled policy remains uncollected.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06778-01-7
S. 3529 2 A. 3032
c. The state insurance fund shall not be required to write a policy of insurance for any employer which is owned or controlled or the majority interest of which is owned or controlled, directly or indirectly, by any person who directly or indirectly owns or controls or owned or controlled at the time of cancellation an employer whose former policy of insurance with the state insurance fund was cancelled for non-payment of premium and assessments evidenced by a judgment holding such individuals liable for such payments pursuant to the civil action defined in subdivision a of this section or withdraws pursuant to section ninetyfour of this article or who is or was at the time of cancellation the president, vice-president, secretary or treasurer of such an employer until the [billed premium] judgment on the cancelled policy is paid.
For purposes of this subdivision, "person" shall include individuals, partnerships, corporations, and other associations.
§ 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.