There is a newer version of the New York Consolidated Laws
2012 New York Consolidated Laws
WKC - Workers' Compensation
Article 4 - (50 - 58) SECURITY FOR COMPENSATION
50 - Security for payment of compensation.
NY Work Comp L § 50 (2012) What's This?
§ 50. Security for payment of compensation. An employer shall secure
compensation to his employees in one or more of the following ways:
1. By insuring and keeping insured the payment of such compensation in
the state fund, or
2. By insuring and keeping insured the payment of such compensation
with any stock corporation, mutual corporation or reciprocal insurer
authorized to transact the business of workers' compensation insurance
in this state through a policy issued under the law of this state.
3. By furnishing satisfactory proof to the chair of his financial
ability to pay such compensation for himself, or to pay such
compensation on behalf of a group of employers in accordance with
subdivision ten of this section, in which case the chair shall require
the deposit with the chair of such securities as the chair may deem
necessary of the kind prescribed in subdivisions one, two, three, four
and five, and subparagraph (a) of paragraph three of subdivision seven
of section two hundred thirty-five of the banking law, or the deposit of
cash, or the filing of irrevocable letters of credit issued by a
qualified banking institution as defined by rules promulgated by the
chair or the filing of a bond of a surety company authorized to transact
business in this state, in an amount to be determined by the chair, or
the posting and filing as aforesaid of a combination of such securities,
cash, irrevocable letters of credit and surety bond in an amount to be
determined by the chair, to secure his liability to pay the compensation
provided in this chapter. Any such surety bond must be approved as to
form by the chair. If an employer or group of employers posts and files
a combination of securities, cash, irrevocable letters of credit and
surety bond as aforesaid, and if it becomes necessary to use the same to
pay the compensation provided in this chapter, the chair shall first use
such securities or cash or irrevocable letters of credit and, when the
full amount thereof has been exhausted, he shall then require the surety
to pay forthwith to the chair all or any part of the penal sum of the
bond for that purpose. The chair may also require an agreement on the
part of the employer or group of employers to pay any awards commuted
under section twenty-seven of this chapter, into the special fund of the
state fund, as a condition of his being allowed to remain uninsured
pursuant to this section. The chair shall have the authority to deny the
application of an employer or group of employers to pay such
compensation for himself or to revoke his consent furnished, under this
section at any time, for good cause shown. The employer or group of
employers qualifying under this subdivision shall be known as a
self-insurer.
If for any reason the status of an employer or group of employers
under this subdivision is terminated, the securities or the surety bond,
or the securities, cash, or irrevocable letters of credit and surety
bond, on deposit referred to herein shall remain in the custody of the
chair for such time as the chair may deem proper and warranted under the
circumstances. In lieu thereof, and at the discretion of the chair, the
employer, his or her heirs or assigns or others carrying on or
liquidating such business, may execute an assumption of workers'
compensation liability insurance policy securing such further and future
contingent liability as may arise from prior injuries to workers and be
incurred by reason of any change in condition of such workers warranting
the board making subsequent awards for payment of additional
compensation. Such policy shall be in a form approved by the
superintendent of financial services and issued by the state fund or any
insurance company licensed to issue this class of insurance in this
state. In the event that such policy is issued by an insurance company
other than the state fund, then said policy shall be deemed of the kind
specified in paragraph fifteen of subsection (a) of section one thousand
one hundred thirteen of the insurance law and covered by the workers'
compensation security fund as created and governed by article six-A of
this chapter. It shall only be issued for a single complete premium
payment in advance by the employer or group of employers and in an
amount deemed acceptable by the chair and the superintendent of
financial services. In lieu of the applicable premium charge ordinarily
required to be imposed by a carrier, said premium shall include a
surcharge in an amount to be determined by the chair to: (i) satisfy all
assessment liability due and owing to the board and/or the chair under
this chapter; and (ii) satisfy all future assessment liability under
this section, and which surcharge shall be adjusted from time to time to
reflect any changes to the assessment of group self-insured employers,
including any changes enacted by the chapter of the laws of two thousand
eleven amending sections fifteen and one hundred fifty-one of this
chapter. Said surcharge shall be payable to the board simultaneous to
the execution of the assumption of workers' compensation liability
insurance policy. However, the payment of said surcharge does not
relieve the carrier from any other liability, including liability owed
to the superintendent of financial services pursuant to article six-A of
this chapter. When issued such policy shall be non-cancellable without
recourse for any cause during the continuance of the liability secured
and so covered.
3-a. Group self-insurance. (1) Definitions. As used in this chapter
the term "employers" shall include: (a) employers with related activity
in a given industry which shall include municipal corporations as that
term is defined in sections two and six-n of the general municipal law,
employing persons who perform work in connection with the given
industry, (b) an incorporated or unincorporated association or
associations consisting exclusively of such employers provided they
employ persons who perform such related work in the given industry, and
(c) a combination of employers as described in subparagraph (a) hereof
and an association or associations of employers as described in
subparagraph (b) hereof.
(2) (a) Any group consisting exclusively of such employers may adopt a
plan for self-insurance, as a group, for the payment of compensation
under this chapter to their employees, except that no new groups may
adopt such a plan, and no group not composed solely of public entities
set forth in paragraph a of subdivision four of this section may insure
any liabilities for any employers on and after January first, two
thousand twelve, except as provided for in paragraph ten of this
subdivision. Under such plan the group shall assume the liability of all
the employers within the group and pay all compensation for which the
said employers are liable under this chapter, except that in the case of
municipal corporations as herein defined no proof of financial ability
or deposit of securities or cash need be made in compliance with this
subdivision. The group qualifying under this subdivision shall be known
as a group self-insurer and the employers participating therein and
covered thereby shall be known as members.
(b) Where such plan is adopted the group self-insurer shall furnish
satisfactory proof to the chair of its financial ability to pay such
compensation for the members in the industry covered by it, its
revenues, their source and assurance of continuance. The chair shall
require the deposit with the chair of such securities as may be deemed
necessary of the kind prescribed in subdivisions one, two, three, four
and five, and subparagraph (a) of paragraph three of subdivision seven
of section two hundred thirty-five of the banking law or the deposit of
cash or the filing of irrevocable letters of credit issued by a
qualified banking institution as defined by rules promulgated by the
chair or the filing of a bond of a surety company authorized to transact
business in this state, in an amount to be determined to secure its
liability to pay the compensation of each employer as above provided.
Such surety bond must be approved as to form by the chair. The chair
shall require each group self-insurer to provide regular reports no less
than annually, which shall include but not be limited to audited
financial statements, actuarial opinions and payroll information
containing proof that it is fully funded. Such reports shall also
include a contribution year analysis detailing contributions and
expenses associated with each specific contribution year. For purposes
of this paragraph, proof that a group self-insurer is fully funded shall
at a minimum include proof of unrestricted cash and investments
permitted by regulation of the chair of at least one hundred percent of
the total liabilities, including the estimate presented in the actuarial
opinion submitted by the group self-insurer in accordance with this
chapter. The chair by regulation, may set further financial standards
for group self-insurers. Any group self-insurer that fails to show that
it is fully funded shall be deemed underfunded, and must submit a plan
for achieving fully funded status which may include a deficit assessment
on members of such group self-insurer which shall be subject to approval
or modification by the chair.
(c) The chair shall evaluate, no less than once every three years, a
group self-insurer's compliance with the financial and regulatory
requirements for self-insurance. The chair may engage any qualified
person or organization to assist with such evaluation and any costs
incurred by the chair shall be borne by the group self-insurer under
examination. Failure to submit to such independent review or to pay such
costs, upon demand of the chair, shall be sufficient grounds to
terminate coverage of the group self-insurer.
(d) The chair may require reports to be prepared by an auditor,
actuary or other consultant, selected by the board or, at the chair's
discretion, by the group self-insurer from a list which shall be
pre-approved by the chair to determine whether the group self-insurer
meets the financial criteria for self-insurance. All actuaries so
selected shall be fellows or associates of the casualty actuarial
society.
(e) The chair may also require that any and all agreements, contracts
and other pertinent documents relating to the organization of the
members in the group self-insurer shall be filed with the chair.
(f) The chair shall have the authority to revoke consent furnished
under this section at any time for good cause shown.
(g) Prior to the requested effective date of the participating
agreement, a group self-insurer shall notify the chair on a prescribed
form of a new group self-insurer member and file (1) a member
application and (2) a copy of the properly executed prescribed
participation agreement wherein the member acknowledges their joint and
several obligation for their period of membership. The board shall, on a
form promulgated by the chair, provide notice of the member's rights and
responsibilities as a group self-insurer member, including the member's
assumption of joint and several liability, and require the member to
return a signed copy to the chair as a condition of membership.
(h) Any member terminating membership in a group self-insurer after
less than four years in such group self-insurer, and any member in a
group self-insurer that has defaulted, shall be precluded from obtaining
prospective coverage from any group self-insurer for a period of at
least three years from the effective date of termination.
(3) A member's participation in a group self-insurer shall not relieve
it of its liability for compensation prescribed by this chapter except
by the payment thereof by the group self-insurer or by itself. Each
member shall be responsible, jointly and severally, for all liabilities
of the group self-insurer provided for by this chapter occurring during
its respective period of membership, and such liability shall attach to
any recipient of a conveyance of assets made in violation of section two
hundred seventy-three of the debtor and creditor law. As between the
employee and the group self-insurer, notice to or knowledge of the
occurrence of the injury on the part of the member shall be deemed
notice or knowledge, as the case may be, on the part of the group
self-insurer; jurisdiction of the member shall, for the purpose of this
chapter, be jurisdiction of the group self-insurer and such group
self-insurer shall in all things be bound by and subject to the orders,
findings, decisions or awards rendered against the participating member
for the payment of compensation under the provisions of this chapter.
The insolvency or bankruptcy of a participating member shall not relieve
the group self-insurer from the payment of compensation for injuries or
death sustained by an employee during the time the member was a
participant in such group self-insurer. Notice of termination of a
participating member shall not be effective until at least ten days
after notice of such termination, on a prescribed form, has been either
filed in the office of the chair or sent by certified or registered
letter, return receipt requested, and also served in like manner upon
the member. In the event such termination is due to a member's failure
to pay required contributions, such member's termination shall not be
rescinded more than three times.
(4) Each group self-insurer, in its application for self-insurance,
shall set forth the names and addresses of each of its officers,
directors, trustees, third party administrator and group administrator.
Notice of any change in the officers, directors, trustees, third party
administrator or group administrator shall be given to the chair within
ten days thereof. No officer, director, trustee, employee, third party
administrator or group administrator of the group self-insurer may
represent or participate directly or indirectly on behalf of an injured
worker or his dependents in any workers' compensation proceeding. All
employees of members participating in group self-insurance shall be and
are deemed to be included under the group self-insurance plan.
(5) (a) Each group self-insurer shall secure the services of a group
administrator to be responsible for assisting the group self-insurer in
complying with the provisions of this section and the rules and
regulations promulgated hereunder, and for coordinating services
including but not limited to claims processing, loss control, legal,
accounting and actuarial services. No person, firm or corporation shall
coordinate such services or otherwise carry out the tasks of a group
administrator as provided in this subdivision or in the regulations
issued pursuant thereto on behalf of a group self-insurer unless such
person shall have obtained from the chair a license authorizing it to
act as a group self-insurer administrator, which license may be revoked
for good cause. The chair shall promulgate regulations setting forth any
additional qualifications for such license, governing the conduct and
compensation of group self-insurer administrators, and setting a license
fee in an amount not less than five thousand dollars per year for such
license for each group self-insurer the administrator administers. Each
administrator shall post a bond in the amount of five hundred thousand
dollars for each group self-insurer administered or such other amount as
may be set by the chair based on the cost and availability of such bond,
from which the chair may recover any recoveries or penalties against the
administrator under this section. Nothing in this section shall relieve
the trustees of a group self-insurer of any fiduciary obligation they
hold to the other members of such group self-insurer.
(b) A group administrator that knowingly and with intent to mislead
makes a material misrepresentation of a material fact in soliciting
members in a group self-insurer shall be guilty of a class E felony.
Additionally, the chair may impose a civil penalty of up to ten thousand
dollars for each such violation.
(c) A group administrator, actuary or accountant that knowingly makes
a material misrepresentation of a material fact concerning the financial
status of any group self-insurer to the chair or board, or in its annual
report to members of the group self-insurer, shall be guilty of a class
E felony. The chair may impose a civil penalty of up to twenty thousand
dollars for each such violation. A second and subsequent violation of
this paragraph shall be a class D felony. The chair may recover in a
civil action any damages resulting from such misrepresentations,
including the value of any amount assessed against any entities that are
not members of the defaulted self-insurer that resulted from any such
misrepresentation.
(d) (1) A group administrator shall provide an annual written report
to all members of the group self-insurer and to the board which shall
include:
a. the members of the group self-insurer;
b. the group administrator and trustees;
c. the results of the most recent financial audit;
d. the percentage of total liabilities held by the self-insurer in
unrestricted cash and investments permitted by regulation as determined
in accordance with subparagraph (b) of paragraph two of this
subdivision;
e. the number and amount of rate deviations provided to members during
the prior year and whether the recipient of any such deviation was a
trustee; and
f. such other information as the chair may direct.
The group administrator shall provide a copy of the most recent
financial audit to any group self-insurer member upon written request.
(2) The chair shall make available to the public, on its website and
in writing upon request:
a. the identity of all group self-insurers that have provided workers'
compensation under this subdivision in the prior three years;
b. the group administrator of each such group self-insurer;
c. the financial condition of all group self-insurers as determined by
the board in the last financial audit and the board's regulatory
definition of assets; and
d. such other information as the chair may direct, but which shall not
include any confidential or proprietary information.
The board may direct the disclosure of any non-proprietary information
regarding any group self-insurer, including whether a member is a member
thereof, to any claimant upon a showing of need.
(e) (1) The chair may condition the issuance or continuation of a
license under this subdivision upon the presentation by a group
administrator of such information as the board requests, at any time
chosen by the chair or at regular intervals, including but not limited
to the annual financial statements of the group administrator detailing
the compensation the administrator and its substantially owned
affiliated entities, as defined in section two of this chapter, have
received or shall receive from the group self-insurer or its members,
and the method by which such compensation has been or will be
calculated. The chair may issue regulations governing the method of
calculating compensation which a group administrator may receive,
including restrictions on the process by which such compensation may be
set.
(2) The chair may revoke the license of any group administrator that
receives compensation in violation of such regulations, and may impose a
penalty of up to two times any compensation so received.
(f) (1) No officer or director of, or person holding five percent or
more ownership interest in, a group administrator shall within two years
of serving in such capacity or holding such ownership interest, serve in
any capacity or hold any ownership interest in a workers' compensation
carrier that provides or solicits the provision of compensation under
this title for any employer that is or was a member of such group
self-insurer. No officer or director of, or person holding five percent
or more ownership interest in a group administrator shall serve in such
capacity or hold such ownership interest in a carrier that provides or
solicits excess coverage for any group self-insurer administered by such
administrator.
(2) The chair may impose a civil penalty of up to ten thousand dollars
for each violation of this paragraph.
(g) Each group self-insurer shall submit to the chair copies of any
agreement or contract with an entity that serves or will serve as its
group administrator, accountant, actuary or third party administrator at
least thirty days prior to becoming effective, and the effectiveness of
such contract shall be conditioned on the absence of an objection by the
board during the thirty day period. Contracts that shall be subject to
such objection shall include any contract in violation of regulation;
and any contract that does not provide reasonable cancellation or
renewal terms, including any contract that requires an affirmative act
by the trustees of the group self-insurer to prevent automatic renewal,
or that does not permit cancellation for negligence, violation of law,
or other good cause.
(6) (a) Group self-insurers must file with the board, as soon as
practicable but no later than sixty days prior to the start of the fund
year a rating plan which is supported by an actuarial rate study
prepared by an independent, qualified actuary that is a fellow or
associate of the casualty actuarial society, that clearly identifies the
actuary's indicated rate assumptions therein. The rating plan must apply
consistently to all members, and must provide for a common renewal date
for all group self-insurer members. The rates filed can be adjusted
based on an experience modification calculated for every member in
accordance with the experience rating plan promulgated by the workers'
compensation rating board. Experience modification formulas must be
applied identically to all members. Other rate deviations may be
permissible provided a plan has been approved by the board. Such
deviations shall not be in excess of ten percent of the actuary's
indicated rate unless otherwise approved by the board for a fully funded
group self-insurer, and shall in no event result in amounts less than
the actuary's overall indicated rate. The chair by regulation may set
further rate plan and actuarial reporting standards.
(b) If the chair has cause to believe that a group self-insurer's
contribution rates including experience modifications do not conform to
the requirements of this part then he or she may require the submission
of a report identifying the contributions paid by each of the members
for the preceding year, the projected contributions for each group
self-insurer member for the current fiscal year, and the manner in which
such contributions were calculated. If, after review by the chair, the
group self-insurer's contribution rates are deemed to be detrimental to
its solvency, the chair may mandate that the group self-insurer modify
such rates as the chair directs. The chair may impose a penalty of up to
five thousand dollars for each violation of this subparagraph. A group
self-insurer's failure to adhere to the rating structure determined by
the board shall constitute good cause for termination.
(7) (a) If for any reason, the status of a group self-insurer under
this subdivision is terminated, including by operation of law on and
after January first, two thousand twelve, the securities or cash or the
surety bond on deposit referred to herein shall remain in the custody of
the chair for such time as the chair may deem proper and warranted. In
lieu thereof, and at the discretion of the chair, the group
self-insurer, its heirs or assigns or others carrying on or liquidating
such group self-insurer, including the chair on the group self-insurer's
behalf, may execute an assumption of workers' compensation liability
insurance policy securing such further and future contingent liability
as may arise from prior injuries to workers and be incurred by reason of
any change in the condition of such workers warranting the board making
subsequent awards for payment of additional compensation. Such policy
shall be in a form approved by the superintendent of financial services
and issued by the state fund or any insurance company licensed to issue
this class of insurance in this state. In the event that such policy is
issued by an insurance company other than the state fund, then said
policy shall be deemed of the kind specified in paragraph fifteen of
subsection (a) of section one thousand one hundred thirteen of the
insurance law and covered by the workers' compensation security fund as
created and governed by article six-A of this chapter. It shall only be
issued for a single complete premium payment in advance by the group
self-insurer and in an amount deemed acceptable by the chair and the
superintendent of financial services. In lieu of the applicable premium
charge ordinarily required to be imposed by a carrier, said premium
shall include a surcharge in an amount to be determined by the chair to:
(i) satisfy all assessment liability due and owing to the board and/or
the chair under this chapter; and (ii) satisfy all future assessment
liability under this section, and which surcharge shall be adjusted from
time to time to reflect any changes to the assessment of group
self-insured employers, including any changes enacted by the chapter of
the laws of two thousand eleven amending sections fifteen and one
hundred fifty-one of this chapter. Said surcharge shall be payable to
the board simultaneous to the execution of the assumption of workers'
compensation liability insurance policy. However, the payment of said
surcharge does not relieve the carrier from any other liability,
including liability owed to the superintendent of financial services
pursuant to article six-A of this chapter. When issued such policy shall
be noncancellable without recourse for any cause during the continuance
of the liability secured and so covered.
(b) The chair shall levy an assessment on the members of a defaulted
group self-insurer within one hundred twenty days of such default or of
the effective date of the chapter of the laws of two thousand eight
which amended this subdivision, whichever is later, and against the
members of any other terminated group self-insurer when necessary, for
such an amount as he or she determines to be necessary to discharge all
liabilities of the group self-insurer, including the reasonable cost of
liquidation such as claims administration costs, actuarial and
accounting services, and the value of future assessments on members of
such group self-insurer. The chair may impose subsequent deficit
assessments, or return funds to members, to adjust the moneys collected
to reflect the time of participation, and percent of group self-insurer
liabilities for such time. Notwithstanding any such action by the chair,
each member of the group self-insurer shall remain jointly and severally
responsible for all liabilities provided by this chapter including but
not limited to outstanding and estimated future liabilities and
assessments. Further, separate and apart from, and in addition to a
member's joint and several liability and notwithstanding any payments
made by any other members of the group self-insurer pursuant to this
subparagraph, in the event that a member neglects or fails to pay an
assessment levied pursuant to this subparagraph, the member shall be
deemed in default in the payment of compensation. Such defaulting member
is subject to the enforcement provisions of section twenty-six of this
chapter for the payment of all compensation relative to awards due and
owing on claims filed by the employees of such member that have neither
been paid by the member or the group self-insurer. Nothing in this
paragraph shall prevent the chair from offering payment plans or
settling claims against members of any group self-insurer as necessary
to facilitate collection.
(c) Upon the assumption of the assets and liabilities of a group
self-insurer by the chair or his or her designee pursuant to regulation
of the chair, all records, documents and files of whatever nature,
pertaining to the group self-insurer, be they in the possession of the
group self-insurer or a third party, and all remaining assets of the
group self-insurer, shall become the property of the chair. All
custodians of such records and/or funds shall turn over to the chair or
his designee all such original records upon demand.
(8) All the provisions of this chapter relating to self-insurance and
the rules and regulations promulgated thereunder shall be deemed
applicable to group self-insurance. The chair shall implement the
provisions of this subdivision by promulgating rules and regulations but
no such rules or regulations shall be necessary for any provision of
this subdivision to be effective. The chair may impose a civil penalty
of up to ten thousand dollars for each violation against any group
self-insurer that violates any provision of this subdivision or of any
regulation issued pursuant thereto for which a civil penalty is not
specified.
(10) (a) A non-municipal group of employers may make application to
the chair to qualify jointly as a self-insurer, provided:
(1) The members of the group secure the services of an administrator,
who shall carry out the responsibilities of such an administrator as set
forth in subdivision five of this section, and who shall be subject to
the restrictions and penalties applicable to an administrator under this
section;
(2) The members of the group, through the administrator, (a) jointly
deposit sufficient securities in accordance with subdivision three of
this section as to secure the liability of the members of the group to
pay for all existing claims obligations, provided such deposit shall be
made by November first, two thousand eleven, (b) jointly deposit
sufficient securities in accordance with subdivision three of this
section as to secure all anticipated present and future claims of the
members of the group, by November first, two thousand fourteen, provided
annual deposits are made in accordance with a schedule set by the chair
on or before November first of each year, and provided that the deposit
shall be deemed an asset of the group for the purpose of determining its
funding status, and (c) by November first, two thousand eleven and
thereafter, shall maintain funds sufficient for all other liabilities
besides claims, including reserves for all assessment liabilities, in a
trust governed in accordance with Part 126 of title 11 of the New York
code of rules and regulations, of which the board shall be the sole
beneficiary, and the terms of the trust agreement, and the trustee,
shall be approved by the chair in his or her sole discretion, and
provided that any group self-insurer that does not hold such funds in a
trust that meets the terms of this paragraph shall post them with the
board;
(3) The group has been authorized by the chair to self-insure in
accordance with this subdivision prior to the effective date of this
paragraph;
(4) The group's members or participant employers either (a) are
parties to collective bargaining agreements with the same unions; or (b)
fall within a limited number of payroll classifications, as set by the
chair, after giving due consideration to the risks associated with any
group of employers self-insuring. However, employers that were active
prior to the effective date of this section and whose classification
codes do not meet the limitations on payroll classification codes or are
not parties to collective bargaining agreements with the same unions
will be permitted to remain in the trust provided (a) they continue to
meet the other terms and conditions of the trust; and (b) any new
members shall be subject to the limitations on the number of payroll
classifications; and provided further, the chair shall revoke such
permission in the event the trust violates paragraph six of this
subdivision relating to filing of a rating plan;
(5) The group was fully funded for three out of the previous five
years and at least ninety percent funded for one other year out of the
previous five years, as determined by the chair following a financial
review, and the group self-insurer has sufficient funds to meet its
liabilities;
(6) The group has a safety program acceptable to the chair; and
(7) The group is subject to such other limitations and requirements of
this subdivision unless waived by the chair and to regulations of the
chair.
(b) The members of any such group shall enter into an agreement among
themselves and with the group's administrator which shall, at a minimum:
(1) Indicate that each of the members of the group is jointly and
severally liable for any liabilities of the group; and
(2) Provide for the collection of additional funds from group members
in the event the deposit with the board is insufficient to meet the
liabilities of the group.
(11) Former group self-insurer. Any group self-insurer that has ceased
to self-insure, or has ceased to self-insure any new liabilities after
January first, two thousand twelve in accordance with paragraph two of
this subdivision, shall remain subject to all the provisions of this
subdivision and the regulations issued pursuant thereto and any
assessments provided for by this section until such time as the group
self-insurer no longer possesses any liabilities.
(12) Any non-municipal group of employers authorized to self-insure
under paragraph ten of this section on or after January first, two
thousand twelve shall be deemed a "private self-insurer" for purposes of
the assessments set forth in sections fifteen and one hundred fifty-one
of this chapter.
3-b. (a) Except as provided in subdivision three-d of this section, no
person, firm or corporation, other than an attorney and
counsellor-at-law, shall solicit the business of representing, or engage
in representing self-insurers or group self-insurers, as defined in
subdivisions three and three-a of this section, before the board or any
officer, agent or employee of the board assigned to conduct any hearing,
investigation or inquiry relative to a claim for compensation or
benefits under this chapter, unless he shall be a citizen of the United
States or an alien lawfully admitted for permanent residence in the
United States, or a corporation organized under the laws of the state of
New York, and shall have obtained from the board a license authorizing
him to appear in matters or proceedings before the board. Such license
shall be issued by the board in accordance with the rules established by
it. Any person, firm or corporation violating the aforesaid provisions
shall be guilty of a misdemeanor. The chair may impose a civil penalty
of up to one thousand dollars for each violation against any
representative licensed in accordance with this section that violates
any provision of this section or of any regulation issued pursuant
thereto, in addition to any other sanctions provided for under this
chapter.
(b) The board, in its rules, may provide for the issuance of licenses
to persons, firms or corporations, upon such proof of character and
fitness as it may deem necessary, and may provide for a license fee in
an amount not exceeding one hundred dollars a year, and an annual
authorization fee in an amount not exceeding five hundred dollars a year
for each designated representative, and for the giving of a bond running
to the people of the state of New York, conditioned upon the faithful
performance of all duties required of such person, firm or corporation,
and in an amount to be fixed by the board in its rules. Such bond shall
be approved by the board as to form and sufficiency and shall be filed
with it. All license and authorization fees collected under the
provisions of this section shall be paid into the state treasury.
(c) There shall be maintained in each office of the board a registry
or list of all persons to whom licenses have been issued, as provided
herein, which list shall be corrected as often as licenses are issued or
revoked. Absence of record of the license issued, as herein provided,
shall be prima facie evidence that a person, firm or corporation is not
licensed to represent self-insurers.
(d) Any such license may be revoked by the board for cause after a
hearing before it.
(e) No license shall be issued hereunder for a period longer than
three years from the date of its issuance. The provisions of this
section shall not apply to a regular employee of a self-insured employer
or to the state insurance fund acting in accordance with an insuring
agreement with the state as authorized pursuant to the provisions of
section eighty-eight-c of this chapter.
3-c. Notwithstanding any provision in this chapter or in any general,
special or local law contained, all cash and securities deposited with
the chairman by an employer who is a party or a wholly owned subsidiary
of a party to a plan heretofore or hereafter adopted under article seven
of the public service law by the transit commission-- metropolitan
division of the department of public service, and who is, or at the time
of the consummation of such plan was, a self-insurer under this chapter,
may be withdrawn upon, or at any time after, the consummation of such
plan as hereinafter provided. All cash and securities deposited by any
such employer with and held by the chairman may be withdrawn upon, or at
any time after, the consummation of such plan where any city which is a
party thereto and which is a self-insurer under this chapter assumes all
liabilities of or claims against such employer under this chapter, as
follows: (a), where such plan provides that such city shall acquire, or
that such employer or his assigns shall retain, all the right and
interest of such employer in the deposited cash and securities, the
chairman shall surrender and deliver such cash and securities to such
city or to such employer or his assigns, as the case may be, upon its
demand, and (b), where such plan provides that such city and such
employer, or his assigns, shall each retain some right and interest in
such cash and securities, the chairman shall surrender and deliver such
cash and securities to such city and to such employer or his assigns
upon their joint demand as shall be specified therein.
3-d. The state insurance fund, an insurance company duly authorized or
licensed to write workers' compensation insurance in this state, a
subsidiary or an affiliate of such an insurance company, or a licensed
or authorized adjusting company or association may apply for a license
from the board to solicit the business of representing and engage in
representing self-insurers, as defined in subdivision three of this
section, before the board or any officer, agent or employee of the board
assigned to conduct any hearing, investigation or inquiry relative to a
claim for compensation or benefits under this chapter. Any corporation
formed solely for the purpose of engaging in the activities described by
this subdivision shall be formed under the laws of the state of New
York.
The state insurance fund, an insurance company, its subsidiary or
affiliate, or such adjusting company or association shall designate
those employees who are to appear in matters or proceedings before the
board on behalf of self-insurers. Such employees shall obtain an
authorization from the board. Upon application to the board for such
authorization all such employees who, on the effective date of this
subdivision, have been appearing in matters or proceedings before the
board on behalf of insurers for a period of at least two years shall
automatically receive a temporary authorization from the board. Such
temporary authorization shall remain in effect until the applicant
employee has been granted or denied final authorization by the board.
The board in its rules shall provide for the issuance of authorizations
to such employees and other designated employees. If the board, in its
rules, provides for the issuance of authorization to persons, firms or
corporations under subdivision three-b of this section upon such proof
of character and fitness as it may deem necessary, the same proof of
character and fitness shall be required for an authorization issued
under this subdivision.
The state insurance fund, an insurance company duly authorized or
licensed to write workers' compensation insurance in this state, a
subsidiary or an affiliate of such an insurance company, or a licensed
or authorized adjusting company or association shall apply to the board
for the issuance of a license upon such proof of character and fitness
as the board may deem necessary. Such proof of character and fitness
shall be the same as that required by the board of persons, firms or
corporations under subdivision three-b of this section. If the board
charges a fee for a license issued under subdivision three-b of this
section, the same amount shall be charged for a license issued under
this subdivision. If the board requires for the giving of a bond running
to the people of the state of New York, conditioned upon the faithful
performance of all duties required of such person, firm, or corporation
licensed under subdivision three-b of this section, the same shall be
required for a license under this subdivision. Such bond shall be
approved by the board as to form and sufficiency and shall be filed with
it. All license and authorization fees collected under the provisions of
this subdivision shall be paid into the state treasury. Any person,
insurance company, its subsidiary or affiliate, or adjusting company or
association which violates the aforesaid provisions of this paragraph
shall be guilty of a misdemeanor.
There shall be maintained in each office of the board a registry list
of all persons to whom authorizations and licenses have been issued as
provided herein, which list shall be corrected as often as
authorizations and licenses are issued or revoked. Absence of record of
the authorization or license issued, as herein provided, shall be prima
facie evidence that a person, firm or corporation is not authorized or
licensed to represent self-insurers. Any such authorization or license
may be revoked by the board for cause after a hearing before it. No
authorization or license shall be issued hereunder for a period longer
than three years from the date of its issuance.
The board shall make rules pertaining to when conflicts of interest
arise in individual cases which shall apply to those who are licensed or
authorized to represent self-insurers under subdivision three-b of this
section or under this subdivision.
The provisions of article twenty-four of the insurance law, insofar as
applicable, shall apply to the state insurance fund, insurance
companies, their subsidiaries and affiliates or adjusting companies or
associations in their activities representing self-insurers before the
board.
3-e. (a) The state insurance fund and any other insurer that issues
policies of workers' compensation insurance shall offer at the option of
the policyholder a deductible for benefits payable under a workers'
compensation policy with an annual premium of twelve thousand dollars or
more, if in the opinion of the state insurance fund or such other
insurer the policyholder meets the eligibility requirements of paragraph
(b) of this subdivision.
(b) A policyholder is eligible for a policy deductible for any renewal
period of the policy if such policyholder has paid the entire billed
premium on the policy for all policy periods within forty-five days of
each billing for the past three years. A policyholder will continue to
be eligible for a deductible provided that no part of any premium is
more than forty-five days overdue from the date billed or reimbursement
for any deductible amount is unpaid by the policyholder to such insurer.
The state insurance fund or any other insurer that has issued a policy
with a deductible may revoke the policyholder's entitlement to a
deductible if the policyholder fails to reimburse any deductible
amounts, or pay any billed premium, within forty-five days after such
reimbursement or premium payment has become due. Upon such revocation of
a policyholder's entitlement to a deductible, the policyholder shall be
entitled to cancel such policy and such policyholder will forfeit
eligibility for entitlement to a deductible as provided above.
(c) Deductibles shall be offered by the state insurance fund or any
other insurer in writing to eligible policyholders at the beginning of
policy periods, in the amounts of one hundred dollars, two hundred
dollars, three hundred dollars, four hundred dollars and five hundred
dollars, and thereafter, in increments of five hundred dollars up to a
maximum of two thousand five hundred dollars per occurrence. The
eligible policyholder shall select, in writing, only one deductible
amount which shall be binding on such policyholder throughout the policy
period.
(d) If the policyholder selects a deductible under paragraph (c) of
this subdivision, workers' compensation benefits payable under the
policy shall be paid by the state insurance fund or other insurer liable
under the policy to the person or provider entitled to such benefits
without regard to any deductible applied to such policy. Upon payment of
benefits on a claim up to or exceeding the deductible amount, the state
insurance fund or other insurer shall be entitled to bill the
policyholder for reimbursement up to the deductible amount. A
policyholder's failure to pay billed deductible reimbursement amounts to
the state insurance fund or other insurer under this paragraph shall be
treated in the same manner as non-payment of premium and render the
policy cancelable in accordance with the provisions of subdivision five
of section fifty-four of this article. The deductibles paid by the
insured employer during any one year period of the policy of insurance
shall not exceed the annual premium for such policy of insurance.
(e) Premium reductions, in accordance with methodology approved by the
superintendent of financial services shall be applied to any policy
written with a deductible. Such premium reductions shall be determined
before the application of any experience modification premium surcharge
or premium discount.
(f) The New York workers' compensation rating board shall file for
appropriate premium discounts subject to the approval of the
superintendent of financial services.
(g) The state insurance fund, any other insurer or any group
self-insurer for municipal corporations as defined in subdivision
three-a of this section may, at its option, offer a deductible in an
amount specified in paragraph (c) of this subdivision to any
policyholder who is not otherwise eligible for a deductible under this
subdivision.
4. a. A county, city, village, town, school district, fire district or
other political subdivision of the state may secure compensation to its
employees in accordance with subdivision one, two or three-a of this
section, and a public corporation as defined in subdivision one of
section sixty of this chapter may also secure such compensation in
accordance with article five of this chapter. If compensation is not so
secured, a county, city, village, town, school district, fire district
or other political subdivision shall be deemed to have elected to secure
compensation pursuant to subdivision three of this section and, in such
case, no proof of financial ability or deposit of securities or cash
need be made in compliance with such subdivision. All other requirements
prescribed by this chapter for employers so electing shall be complied
with and notice of such election shall be filed with the chair. For
failure to file such notice of election, prescribed in form by the
chair, within ten days after the election was made, the treasurer or
other financial officer shall be liable to pay to the chair the sum of
one hundred dollars as a penalty, to be transferred to the state
treasury.
b. The treasurer or other fiscal officer of a self-insuring county,
city, village, town, school district, fire district or other political
subdivision shall, upon presentation of an award of compensation
forthwith begin payment of it to the person entitled thereto in
accordance with this chapter.
c. The governing board of a county, city, village, town, school
district, fire district or other political subdivision may authorize the
treasurer or other fiscal officer of such municipal corporation,
district or political subdivision, as the case may be, to pay the
compensation provided for in this chapter to the person entitled thereto
without waiting for an award in any case in the manner provided in
section twenty-five of this chapter. The amount of such compensation
payable prior to an award pursuant to such authorization shall
constitute a settled claim within the meaning of the local finance law.
d. A contract of insurance issued to a county or a town in accordance
with subdivision one or two of this section and in force on or after the
first day of March, nineteen hundred sixty-three, in relation to fire
districts and on or after the first day of January, in the year in which
this paragraph as hereby amended becomes effective in relation to
ambulance districts shall contain a provision reading as follows: "This
contract does not provide (1) any coverage under the Workers'
Compensation Law or the Volunteer Firefighters' Benefit Law or the
Volunteer Ambulance Workers' Benefit Law for which any fire district or
ambulance district would be liable under such laws, (2) any workers'
compensation benefits for fire or ambulance district officers and
employees for which any fire district or ambulance district would be
liable under the Workers' Compensation Law, or (3) any volunteer
firefighters' or ambulance workers' benefits for any volunteer
firefighters or volunteer ambulance workers under the Volunteer
Firefighters' Benefit Law or the Volunteer Ambulance Workers' Benefit
Law".
e. If for any reason the status of a county, city, village, town,
school district, fire district or other political subdivision of state
is terminated, at the discretion of the chair, the county, city,
village, town, school district, fire district or other political
subdivision of state, may execute an assumption of workers' compensation
liability insurance policy securing such further and future contingent
liability as may arise from prior injuries to workers and be incurred by
reason of any change in the condition of such workers warranting the
board making subsequent awards for payment of additional compensation.
Such policy shall be in a form approved by the superintendent of
financial services and shall be issued by the state fund or any
insurance company licensed to issue this class of policy in this state.
In the event that such policy is issued by an insurance company other
than the state fund, then said policy shall be deemed to be insurance of
the kind specified in paragraph fifteen of subsection (a) of section one
thousand one hundred thirteen of the insurance law and covered by the
workers' compensation security fund as created and governed by article
six-A of this chapter. It shall only be issued for a single complete
premium payment in advance by the county, city, village, town, school
district, fire district or other political subdivision of state and in
an amount deemed acceptable by the chair and the superintendent of
financial services. In lieu of the applicable premium charge ordinarily
required to be imposed by a carrier, said premium shall include a
surcharge in an amount to be determined by the chair to satisfy all
assessment liability due and owing to the board and/or the chair under
this chapter. Said surcharge shall be payable to the board simultaneous
to the execution of the assumption of workers' compensation liability
insurance policy. However, the payment of said surcharge does not
relieve the carrier from any other liability, including liability owed
to the superintendent of financial services pursuant to article six-A of
this chapter. When issued such policy shall be non-cancellable without
recourse for any cause during the continuance of the liability secured
and so covered.
5. Self-insurance. "Self-insurance," as used herein, shall be deemed
to be the system of securing compensation as provided in subdivisions
three, three-a and four of this section, and article five of this
chapter.
a. The chair shall administer all matters relating to self-insurance
under this chapter. All penalties set forth in subdivisions three and
three-a of this section shall be paid into the fund for uninsured
employers provided for in section twenty-six-a of this chapter.
b. Advisory committee for individual self-insurance. (1) To advise the
chair, there shall be an advisory committee for individual
self-insurance, which shall be called the advisory committee for
self-insurance and consist of the chair and ten additional members
appointed by the chair. Three of such members shall be named from the
manufacturing and trade group of self-insurance, three from the
transportation, public utilities and construction group, and one member
shall be a self-insurer selected at large by the chairman, who shall be
vice-chairman of the advisory committee. The chair shall be chair of the
advisory committee; the secretary of the board shall act as secretary of
the advisory committee. Any member appointed to such advisory committee
shall be a self-insurer or an officer of a self-insurer or a person who
on account of his or her employment or affiliation can be classed as a
management representative of a self-insurer. The members of the advisory
committee for self-insurance in office at the time this subdivision
takes effect, shall be and they are hereby continued in office as such
for the remainder of the terms for which they were appointed
respectively.
The members of the advisory committee for self-insurance next
appointed, except to fill a vacancy created otherwise than by expiration
of term, shall be appointed for terms of three years, except that of the
three additional members to be appointed after May first, two thousand
eight, one such member shall be appointed for an initial term of one
year, one such member shall be appointed for an initial term of two
years, and one such member shall be appointed for an initial term of
three years. No member shall be appointed to the advisory committee for
individual self-insurance if he or she has been convicted of a crime
under this chapter or has been subject to criminal or civil penalties
under this subdivision. Vacancies shall be filled for the unexpired term
by appointment by the chair. Members shall continue in office until
their successors are appointed; in the event that no appointment is made
within three months after a vacancy exists or after the expiration of
the term of a member, the remaining members may fill the vacancy by a
majority vote. If a member shall be absent from two consecutive regular
meetings without adequate excuse his or her place may be declared vacant
by the chair. Members of such advisory committee shall serve without
pay, but shall be entitled to their reasonable and necessary traveling
and other expenses incurred in connection with their duties. Regular
meetings of the advisory committee shall be held twice a year, on dates
to be fixed by the chair. In addition, special meetings shall be held if
called by the chair or any five members of the committee. Such advisory
committee shall have access to all self-insurance records except those
restricted by the chair or those whose disclosure is restricted under
section one hundred ten-a of this chapter, and shall have the power to
require the presence before it of any employee of the board or any
self-insurer as reasonable and related to matters within the purview of
the committee. Information obtained by members of the advisory committee
shall be deemed confidential unless disclosed by order of the committee.
It shall be the duty of the advisory committee to advise the chair on
all matters relating to self-insurance, particularly in respect to rules
governing self-insurance, the deposit or withdrawal of securities, the
standards for permitting employers to self-insure under this section,
the appropriate amount of security or payments that self-insured
employers must provide, and on such other matters as the chair shall
request. The chair shall detail to such advisory committee such
stenographic or other assistance as may be necessary. Minutes shall be
kept of the meetings of the advisory committee and shall be provided
within forty-five days of such meeting to the governor and legislature,
including the chairs of the assembly and senate committees on insurance
and labor.
c. (1) The chair and the department of audit and control as soon as
practicable after May first, nineteen hundred sixty, and annually
thereafter, as soon as practicable after April first in each succeeding
year, shall ascertain the total amount of net expenses, including (a)
administrative expenses, which shall include the direct costs of
personal services, the cost of maintenance and operation, the cost of
retirement contributions made and workers' compensation premiums paid by
the State for or on account of personnel, rentals for space occupied in
state owned or state leased buildings, and (b) all direct or indirect
costs incurred by the board during the preceding fiscal year in carrying
out the provisions of subdivision three and three-a of this section.
Such expenses shall be adjusted quarterly to reflect any change in
circumstances, and shall be assessed against all private self-insured
employers, including for this purpose active and terminated group
self-insurers, active individual self-insured employers, and individual
self-insured employers who have ceased to exercise the privilege of
self-insurance.
(2) Such expenses shall be assessed against all self-insurers
including for this purpose employers who have ceased to exercise the
privilege of self-insurance. The basis of apportionment of the
assessment against each self-insurer shall be a sum equal to that
proportion of the amount which the indemnity payment for each
self-insurer bore to the total indemnity payments for all self-insurers
for the calendar year which ended within the preceding state fiscal
year. All such assessments when collected shall be deposited into a fund
which shall be used to reimburse the appropriations theretofore made by
the state for the payment of the expenses of administering this chapter.
(3) Pure premium for assessments made prior to January first, two
thousand nine against individual and group self-insurers who ceased to
self-insure shall be based on payroll at the time the individual or
group self-insurer has ceased to self-insure, reduced by a factor
reflecting the reduction in the group or individual self-insurer's
self-insurance liabilities since ceasing to self-insure.
d. The chair may from time to time request the superintendent of
financial services for assistance, and the superintendent of financial
services is hereby authorized to render such assistance upon request of
the chair, as may be necessary to insure the financial ability of such
group self-insurers to pay all liabilities provided by this chapter.
e. Notwithstanding the provisions of paragraph c of this subdivision,
the chair shall require that partial payments for expenses of the fiscal
year beginning April first, nineteen hundred eighty-three, and for each
fiscal year thereafter shall be made on March tenth of the preceding
fiscal year and on June tenth, September tenth, and December tenth of
each year, or on such other dates as the director of the budget may
prescribe, by each self-insurer. Provided, however, that the payment due
March tenth, nineteen hundred eighty-three for the fiscal year beginning
April first, nineteen hundred eighty-three shall not be required to be
paid until June tenth, nineteen hundred eighty-three. Each such payment
shall be a sum equal to twenty-five per centum of the annual expenses
assessed upon each self-insurer, as estimated by the chair. The balance
of assessments for the fiscal year beginning April first, nineteen
hundred seventy-three and each fiscal year thereafter, shall be paid
upon determination of the actual amount due in accordance with the
provisions of paragraph c of this subdivision. Any overpayment of annual
assessments resulting from the requirements of this paragraph shall be
refunded or at the option of the chair shall be applied as a credit
against the assessment of the succeeding fiscal year. The requirements
of this subdivision shall not apply to those self-insurers whose
estimated annual assessment for the fiscal year is less than one hundred
dollars and such self-insurers shall make a single payment of the
estimated annual assessment on or before September thirtieth of the
fiscal year.
f. Whenever the chair shall determine that the compensation and
benefits provided by this chapter may be unpaid by reason of the default
of an insolvent private self-insured employer, including a private group
self-insurer, the chair shall pay such compensation and benefits from
administration expenses as provided in section one hundred fifty-one of
this chapter upon audit and warrant of the comptroller upon vouchers
approved by the chair. Such payments shall be considered expenses of
administration. The chair shall be reimbursed therefor from the surety
bond, cash or securities held or, if such surety bond, securities or
cash is insufficient, by the employer, its receiver, liquidator,
rehabilitator or trustee in bankruptcy. All moneys reimbursed to the
chair or recovered by the chair in an action or proceeding to secure
such reimbursement shall forthwith be applied as a credit against the
expenses on which the assessment levied upon all private self-insured
employers, in accordance with paragraphs c and e of this subdivision, is
calculated.
g. Whenever the chair shall determine that the compensation and
benefits provided by this chapter may be unpaid by reason of the default
of an insolvent private self-insured employer, including a private group
self-insurer, the chair shall levy an assessment against all private
self-insured employers, including private group self-insurers, in
accordance with paragraphs c and e of this subdivision to assure prompt
payment of such compensation and benefits. Whenever compensation and
benefits are unpaid by reason of such default, the chair shall promptly
pay such compensation and benefits from administration expenses as
provided in section one hundred fifty-one of this chapter upon audit and
warrant of the comptroller upon vouchers approved by the chair. Nothing
in this paragraph shall preclude the chair from recovering the moneys it
expends from its administrative expenses against the defaulted
individual self-insurer, or the members of the defaulted group
self-insurer, as otherwise permitted by this chapter.
6. Any policy of insurance purchased pursuant to the provisions of
this subdivision six as in effect prior to the first day of March,
nineteen hundred fifty-seven, shall be cancelled prior to, or as of, the
twenty-eighth day of February, nineteen hundred fifty-seven.
The cost of such insurance shall be apportioned by the clerk of the
board of supervisors of the county to each such city, village, fire
district, fire protection district, fire alarm district, and territory
outside such municipal corporations and districts, in the proportion
that the agreed population bears to the entire population of the group.
Refunds, dividends and discounts in relation to such insurance shall be
distributed or credited according to the same apportionment. Upon
notification by the clerk of the board of supervisors, the chief fiscal
officer of each such city, village or fire district shall pay to the
county treasurer, from moneys available or made available, the amount
apportioned to such city, village or district. Upon like notification,
the supervisor of each town in which a fire protection district or fire
alarm district is located in whole or in part, or in which outside
territory is located, shall pay to the county treasurer the amount
apportioned for such district, in whole or in part, or territory, as the
case may be, using moneys raised or made available for the purposes of
fire protection in such district or outside territory, or if there be no
such moneys or insufficient moneys, using funds of the town available or
made available, which funds shall be a charge upon such district or
territory for which the town shall be reimbursed. The county treasurer
shall pay the cost of such insurance with such moneys, or if any
apportioned share has not been paid, the county treasurer shall advance
the amount necessary from moneys of the general fund upon resolution of
the board of supervisors. Any such advance shall be repaid as soon as
moneys are available therefor. If any apportioned share remains unpaid,
the county may recover the same by action at law. If any member of the
group shall fail to pay its apportioned share within thirty days after
notice that such amount has become due and payable, the chairman of the
board of supervisors may terminate the participation of such member in
the group by notice by mail to such member on a date specified in the
notice, and a copy of such notice shall be filed by the chairman of the
board of supervisors with the insurance carrier, who shall notify the
chairman of the workmen's compensation board of the termination of
coverage in the same manner as provided for cancellation of policy under
subdivision five of section fifty-four of this chapter.
If any participating fire protection district or fire alarm district
includes territory in more than one town, whether or not in more than
one county, the amount of cost of insurance, refund, dividend or
discount apportioned to such district shall be apportioned in the
proportion that the population of the district within each such town
bears to the population of the entire district. The figure used for
population in such case shall be the one stated in the agreement.
7. Any policy of insurance purchased pursuant to the provisions of
this subdivision seven as in effect prior to the first day of March,
nineteen hundred fifty-seven, shall be cancelled prior to, or as of, the
close of the twenty-eighth day of February, nineteen hundred
fifty-seven. The cost of such insurance shall be a town charge and shall
be levied and collected in the same manner as other town charges only in
the territory of such town outside of any villages and fire districts
not covered by such a policy.
8. The requirements of section ten of this chapter regarding the
provision of workers' compensation insurance as to owners and trainers
governed by the racing, pari-mutuel wagering and breeding law who are
employers under section two of this chapter are satisfied in full by
compliance with the requirements imposed upon owners and trainers by
section two hundred thirteen-a of the racing, pari-mutuel wagering and
breeding law, provided that in the event double compensation, death
benefits, or awards are payable with respect to an injured employee
under section fourteen-a of this chapter, the owner or trainer for whom
the injured jockey, apprentice jockey or exercise person licensed under
article two or four of the racing, pari-mutuel wagering and breeding law
is performing services as a jockey, apprentice jockey or exercise person
so licensed at the time of the accident shall bear the sole
responsibility for the amount payable pursuant to such section
fourteen-a in excess of the amount otherwise payable under this chapter,
unless there shall be a failure of the responsible owner or trainer to
pay such award within the time provided under this chapter. In the event
of such failure to pay and the board requires the fund to pay the award
on behalf of such owner or trainer who has been found to have violated
section fourteen-a, the fund shall be entitled to an award against such
owner or trainer for the amount so paid which shall be collected in the
same manner as an award of compensation. Coverage directly procured by
any owner or trainer for the purpose of satisfying the requirements of
this chapter with respect to employees of the owner or trainer shall not
include coverage on any jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law to the extent that such jockey, apprentice jockey or
exercise person is also covered under coverage procured by The New York
Jockey Injury Compensation Fund, Inc. pursuant to the requirements of
section two hundred thirteen-a of the racing, pari-mutuel wagering and
breeding law, and to that extent, coverage procured by the fund pursuant
to the requirements of the racing, pari-mutuel wagering and breeding law
shall be considered primary.
9. The requirements of sections ten and eleven of this chapter
regarding the securing and provision of workers' compensation benefits
as to a central dispatch facility, as defined in article six-F of the
executive law, are satisfied in full by compliance with the requirements
imposed upon such central dispatch facility by such article. Insurance
coverage directly procured by any central dispatch facility for the
purpose of satisfying the requirements of this chapter with respect to
employees of the central dispatch facility shall not include coverage of
any black car operator to the extent that the black car operator is also
covered under coverage secured by the New York black car operators'
injury compensation fund, inc. pursuant to the requirements of article
six-F of the executive law, and to that extent, coverage secured by the
fund pursuant to the requirements of article six-F of the executive law
shall be considered primary.
10. An individual self-insured employer or group self-insurer who
fails to file or maintain the security deposit required by the chair
will be deemed to have failed to secure compensation for the amount not
deposited, and shall be liable for all penalties for such failure
provided for under this title.
11. If at any time an individual self-insured employer or member of a
group self-insurer intentionally and materially understates or conceals
payroll, or intentionally and materially misrepresents or conceals
employee duties or if the employer intentionally or materially misstates
payroll or claims information for the purposes of determining employer
contributions as provided for under subdivisions three and three-a of
this section, such employer shall be deemed to have failed to secure
compensation and shall be subject to sanctions applicable under section
fifty-two of this article in addition to any other sanctions available
under law.
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