2013 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 or in a trust governed in accordance with Part 126 of title
  11 of the New York code of rules and regulations 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 or in a trust governed  in  accordance
  with  Part 126 of title 11 of the New York code of rules and regulations
  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 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.
    12. The chair, with the approval of the director of  the  budget,  may
  request the issuance of bonds by the dormitory authority for one or more
  of  the  purposes  authorized by section sixteen hundred eighty-q of the
  public authorities law and by a self-insured  bond  financing  agreement
  authorized  by section fifty-c of this article. The net proceeds of such
  bonds shall be  deposited  into  the  self-insurer  offset  fund  or  as
  otherwise   provided  by  the  applicable  self-insured  bond  financing
  agreement.

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