What's happening
This bill allows employers to immediately cancel State Insurance Fund workers' compensation policies upon securing new coverage, bypassing the 30-day notice requirement.
Why it matters
Reduces administrative burden and potential overlap in coverage. This change allows employers to cancel their State Insurance Fund policy as soon as they secure new workers' compensation insurance, avoiding the previous situation where businesses might have to pay for overlapping insurance coverage during the mandatory 30-day notice period.
Improves business flexibility and cash flow. By enabling immediate policy cancellation, employers can better control insurance costs and avoid unnecessary expenses, which can be particularly important for small businesses operating with tight margins.
Ensures continuous worker protection. The bill still requires proof of new coverage before cancellation, so employees remain protected by workers’ compensation insurance throughout any transition, maintaining legal and financial safeguards for workers.
May impact the State Insurance Fund’s revenue predictability. With employers able to exit immediately, the Fund may see less stable premium income and less advance warning of customer departures, potentially affecting its planning and operations.
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Who cares
Headline styles
Ease Insurance Fund Withdrawal
Plain English, a few words. Used as the page title.
Sponsors
6 Co-sponsors
1 Multi-sponsor
History
- Referred to labor
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.166
- Ordered to third reading rules cal.122
- Rules report cal.122
- Reported
- Reported referred to rules
- Print number 4350a
- Amend and recommit 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.
Change Insurance Withdrawal Notice
In Senate Committee · Labor · Sponsor Neil D. Breslin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4350--A
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. ZEBROWSKI, McDONALD, STIRPE, WALLACE, BENEDETTO -- read once and referred to the Committee on Labor -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 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 deemed not to take effect until the cancellation of such employer's contract with the state insurance fund has become effective.
The requirements of this subdivision shall not apply when an employer has given written notice to the fund of his intention to withdraw, which shall include the effective date of such cancellation and proof that the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06523-04-9
A. 4350--A 2
employer has complied with subdivision two of section fifty of this chapter. The effective date of cancellation of such employer's contract with the state insurance fund shall be the date that the new insurance contract with the stock corporation, mutual corporation or reciprocal insurer takes effect.
§ 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.