N.Y. Workers' Compensation Law § 108: Payments into fund; returns; recoupment

§ 108. Payments into fund; returns; recoupment. 1. On or before the

fifteenth day of February, May, August and November, of each year, every

carrier shall file, quarterly, with the superintendent of financial

services and with the commissioner of taxation and finance, identical

returns, under oath, on a form to be prescribed and furnished by the

superintendent of financial services, stating the amount of net written

premiums for policies issued or renewed by such carrier, during the

three months' periods ending, respectively, on the preceding December

thirty-first, March thirty-first, June thirtieth, and September

thirtieth, to insure payment of compensation pursuant to this chapter

and/or the longshore and harbor workers' compensation act and stating

the amount of dividends paid to policyholders during said period. For

the purposes of this section "net written premiums" shall mean gross

written premiums less return premiums on policies returned "not taken"

and on policies cancelled, but shall not mean premiums for reinsurance.

2. For the privilege of carrying on the business of workers'

compensation insurance in this state, every carrier shall pay into the

fund for deposit in the workers' compensation security fund payment

account established pursuant to section eighty-nine-f of the state

finance law, upon filing each quarterly return, a sum equal to one per

centum, provided, however, that the superintendent of financial services

may require each carrier to pay into the fund not more than two per

centum, of its net written premiums, less the amount of dividends paid

to policyholders, for the period covered by such return, except when

suspended in accordance with section one hundred nine of this article.

3. The provisions of this section shall not apply with respect to

policies containing coverage pursuant to subsection (j) of section three

thousand four hundred twenty of the insurance law relating to every

policy providing comprehensive personal liability insurance on a one,

two, three or four family owner-occupied dwelling.

4. The superintendent shall adopt a recoupment rate which shall enable

each carrier to recoup over a reasonable length of time a sum reasonably

calculated to recover the payments by the carrier under this section by

way of a surcharge on premiums charged for insurance policies to which

this section applies. Amounts recouped shall not be considered taxable

for the purposes of article thirty-three of the tax law.

5. The amount of any surcharge on premiums pursuant to subdivison two

of this section shall be separately stated on either a billing or policy

declaration sent to an insured. The superintendent shall determine the

rate of the surcharge and the collection period and these shall be

mandatory for all carriers. Carriers who collect surcharges in excess of

payments made pursuant to this section shall remit the excess to the

superintendent within one hundred twenty days after the end of the

collection period determined by the superintendent. The excess shall

first be applied to reimburse, on an equitable basis, those carriers who

are unable to collect surcharges equal to their paid assessments, and

any excess thereafter shall be retained by the fund to reduce future

assessments.

6. The statement of the amount of surcharge required to be provided by

subdivision five of this section shall include a description of, and

purpose for, the New York Workers' Compensation Security Fund, as

follows:

"Companies writing workers' compensation insurance business in New

York are required to participate in the New York Workers' Compensation

Security Fund. If a company becomes insolvent, the security fund settles

unpaid claims and assesses each insurance company for its fair share.

New York law requires all companies to surcharge policies to recover

these assessments. If your policy is surcharged 'NY surcharge', an

amount will be displayed on your premium notice."