N.Y. Workers' Compensation Law § 76: Creation of state fund

§ 76. Creation of state fund. 1. There is hereby continued in the

department of labor a fund known as "the state insurance fund", for the

purpose of insuring employers against liability for personal injuries or

death sustained by their employees, including liability other than

liability assumed by contract imposed upon employers by reason of a suit

or claim brought against the employer by another to recover the amount

of damages obtained from such other by an employee of the employer for

injuries or in case of death by his dependents for death sustained by

such employee arising out of and in the course of his employment and to

pay such damages, and of assuring to the persons entitled thereto the

compensation and benefits provided by this chapter or by any act

providing for compensation now or hereafter enacted by the congress of

the United States of America if such liability is incident to an

employment carried on in this state, and every such payment shall

constitute an element of loss for the purpose of establishing premium

rates. Such fund shall consist of all premiums received and paid into

the fund, of property and securities acquired by and through the use of

moneys belonging to the fund and of interest earned upon moneys

belonging to the fund and deposited or invested as herein provided. Such

fund shall be applicable to the payment of losses sustained on account

of insurance, to the payment of expenses in the manner provided in this

chapter and to the payment of premiums for reinsurance in any insurance

corporation of the whole or any part of any policy obligations.

1-a. a. The purposes of the state insurance fund are hereby enlarged

to permit it to enter agreements with insurers licensed to write

workers' compensation insurance in states outside New York to issue

policies to state insurance fund policyholders covering those

policyholders' obligations to secure the payment of workers'

compensation benefits under the laws of states other than New York. The

state insurance fund shall also be authorized to receive premiums into

its workers' compensation fund for policies written under such

agreements and to pay from such fund: (i) reimbursement of all losses

and loss adjustment expenses under such policies; and (ii) fees and

other costs, including but not limited to those for claims services,

relating to such agreements. An agreement under this subdivision shall

not include the provision of claims services for any claim under this

chapter.

b. For a policyholder to be eligible for insurance in states other

than New York provided through agreements entered into under this

subdivision, either: (i) the policyholder's workers' compensation

premiums with the state insurance fund covering its employees under this

chapter must be greater than the premiums charged to cover the

policyholder's obligations to pay workers' compensation benefits in all

states, in the aggregate, other than New York when covered under such

agreements; or (ii) the payroll for the policyholder's operations in New

York must be greater than the policyholder's payroll in all states, in

the aggregate, other than New York when covered under such agreements

for the prior policy period. For determining eligibility, "premiums"

mean estimated premiums as determined by the state insurance fund at the

beginning of the policy period. In addition, for a policyholder to be

eligible for insurance in states other than New York through the state

insurance fund, the policyholder must meet the state insurance fund's

underwriting criteria for other states coverage as specified by rules of

the commissioners.

2. The purposes of the state insurance fund herein created are hereby

enlarged to provide insurance for the payment of the benefits required

by section two hundred four of this chapter including benefits for

family leave. A separate fund is hereby created within the state

insurance fund, which shall be known as the "disability benefits fund",

and which shall consist of all premiums received and paid into said fund

on account of such insurance, all securities acquired by and through the

use of moneys belonging to said fund and of interest earned upon moneys

belonging to said fund and deposited or invested as herein provided.

Said disability benefits fund shall be applicable to the payment of

benefits, expenses and assessments on account of insurance written

pursuant to article nine of this chapter. Premiums for policies

providing disability and family leave benefits in accordance with this

article shall be calculated in accordance with applicable provisions of

the insurance law, including subsection (n) of section four thousand two

hundred thirty-five of such law. The state insurance fund shall have

authority to discount or surcharge on established premium rates based on

sound actuarial principles.

2-b. The purposes of the state insurance fund created in this section

are hereby enlarged to provide for the insurance by the state insurance

fund of the payment of the benefits required by section one hundred

sixty-ddd of the executive law.

3. The respective assets and liabilities of the workers' compensation

and disability benefits funds provided in this section shall be and

remain separate except that advances may be made from either fund for

the payment of benefits and for administrative expenses, subject to

annual reimbursement.

Whenever used in this article the terms "state insurance fund", "state

fund" and "fund" shall be deemed to include both the workers'

compensation fund and the disability benefits fund unless the context

otherwise indicates.

4. The purposes of such state insurance fund are hereby further

enlarged to permit it to furnish to self-insurers, as defined in

subdivision three of section fifty of this chapter, representation and

services of the nature specified in paragraph five of subsection (a) of

section one thousand six hundred one of the insurance law and

subdivision three-d of section fifty of this chapter.

5. No monies of the state insurance fund shall be transferred to any

other fund, nor shall any such monies be applied to the making of any

payment for any purpose other than the purposes set forth in this

article.