N.Y. Workers' Compensation Law § 15-a: Assessment on insolvent group self-insured trusts

§ 15-a. Assessment on insolvent group self-insured trusts. The

legislature finds that in lieu of the assessments under sections fifteen

and one hundred fifty-one of this chapter that shall no longer be

imposed on closed group self-insured trusts as a result of the chapter

of the laws of two thousand eleven which added this section, the members

of group self-insured trusts that were insolvent upon closing, and that

fail to pay their obligations within the periods specified by this

section, shall be subject to a one time assessment pursuant to this

section. Within thirty days of January first, two thousand sixteen, all

employers who were members of a closed group self-insured trust that was

insolvent at the time the group was closed shall be subject to an

assessment under this section, except for those employers that: (1) have

entered into a settlement agreement or payment plan with the board under

which they have agreed to resolve all liabilities from the membership in

such trust, and remain current in their payments; (2) are members of a

group self-insurer that has transferred all of its liabilities

transferred via a loss portfolio transfer; or (3) have paid all moneys

billed them by the board at the time such assessment is due. For

purposes of this section, insolvent means the inability of a private

group self-insured trust to pay its outstanding lawful obligations under

this chapter as they mature in the regular course of business, as may be

shown by: (i) the self-insurer being underfunded as defined in

subdivision three-a of section fifty of this chapter; and (ii) the sum

of the group self-insured trust's assets, as defined by regulation of

the chair, plus the available security deposit held by the chair

pursuant to subdivision three-a of section fifty of this chapter and

regulation of the chair, being less than the total cost of all of the

group self-insured trust's anticipated workers' compensation

liabilities, as defined by board regulations, that will accrue within

the succeeding six months. The total of such assessment shall be

determined by the percentage of the assessment levied on all employers

under subdivision eight of section fifteen of this article in two

thousand ten that was levied on group self-insured trusts multiplied by

the total amount of the employer's unpaid pro rata share of any deficit

owed by the closed group self-insured employer of which such employer

was a member, as determined by the chair. The amount received on such

assessment shall be used as an offset against the assessments imposed on

other employers under subdivision eight of section fifteen of this

article and section one hundred fifty-one of this chapter in the

calendar year following the year in which it was received.