What's happening
This bill amends the workers' compensation law to require a judgment before restricting employers from obtaining new insurance after policy cancellation for non-payment.
Why it matters
Protects employers from immediate insurance restrictions. The bill ensures that employers whose workers' compensation policies are canceled for non-payment won't automatically be barred from obtaining new insurance; restrictions only apply after a court judgment officially holds them liable for unpaid amounts.
Requires due process before penalties. By mandating a civil judgment before restricting access to new policies, the bill introduces a legal safeguard, preventing the state insurance fund from unilaterally penalizing employers without first proving the debt in court.
Limits broader liability to proven cases. The change also affects affiliated individuals (e.g., business owners, corporate officers), ensuring they are only personally restricted from acquiring new policies if a court judgment establishes liability—reducing the risk of unjust exclusion.
Potentially changes collection practices. The state insurance fund may need to pursue more civil actions in court to secure judgments before restricting future coverage, which could affect how quickly and efficiently it collects unpaid premiums.
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Who cares
Headline styles
Block Defaulted Insurance Policies
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.
Bar Insurers From Repeat Defaulters
In Assembly Committee · Labor · Sponsor Fred Thiele
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.
Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to the collection of premium in case of default
Purpose
Relates to the collection of premium in case of default.
Summary of provisions
Section 1. Amends Section 93 of the Workers'Compensation Law
Section 2. Effective Date
Justification
Under Section 93 of the Workers' Compensation Law, the New York State Insurance Fund (NYSIF) currently denies policyholders due process and the corporate protections afforded to individuals under NYS law. This bill will require the NYSIF to first obtain a judgment in a collection proceeding in a civil action prior denying an employer the ability secure a new insurance policy.
Legislative history
2017: New Legislation
Fiscal implications
To be determined.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.