N.Y. Workers' Compensation Law § 93: Collection of premium in case of default

§ 93. Collection of premium in case of default. a. If a policyholder

shall default in any payment required to be made by him to the state

insurance fund after due notice, his insurance in the state fund may be

cancelled and the amount due from him shall be collected by civil action

brought against him in any county wherein the state insurance fund

maintains an office in the name of the commissioners of the state

insurance fund and the same when collected, shall be paid into the state

insurance fund, and such policyholder's compliance with the provisions

of this chapter requiring payments to be made to the state insurance

fund shall date from the time of the payment of said money to the state

insurance fund.

b. An employer, whose policy of insurance has been cancelled by the

state insurance fund for non-payment of premium and assessments or

withdraws pursuant to section ninety-four of this article, is ineligible

to contract for a subsequent policy of insurance with the state

insurance fund while the billed premium on the cancelled policy remains

uncollected. However, the state insurance fund shall have discretion to

issue a new policy to such employer by consenting to a payment plan for

the employer to pay off the balance on the prior policy provided that

(1) any required payroll audit or self-audit has been completed at the

time the new policy is issued, (2) the employer's prior payment and

policy history meet the state insurance fund's underwriting standards,

(3) the employer has demonstrated the ability to pay the deposit premium

on the new policy and the first installment of the balance due on the

prior cancelled policy prior to issuance of the new policy, and (4) the

employer has demonstrated the ability to pay the overdue balance from

the prior cancelled policy by installments as determined by the state

insurance fund together with payments on the new policy within twelve

months from the date the new policy is issued. If an employer is issued

a new policy pursuant to this subdivision, such employer shall be

required to make the final payment on such overdue balance within twelve

months from the date the new policy is issued. If the employer defaults

on payment for either the new policy or the balance due from the prior

cancelled policy, the employer's new policy is subject to cancellation

for non-payment of premium as provided under this chapter. If the new

policy issued pursuant to this subdivision is cancelled, the employer

shall be ineligible for an additional policy until all amounts due from

all prior cancelled policies have been paid.

c. The state insurance fund shall not be required to write a policy of

insurance for any employer which is owned or controlled or the majority

interest of which is owned or controlled, directly or indirectly, by any

person who directly or indirectly owns or controls or owned or

controlled at the time of cancellation an employer whose former policy

of insurance with the state insurance fund was cancelled for non-payment

of premium and assessments or withdraws pursuant to section ninety-four

of this article or who is or was at the time of cancellation the

president, vice-president, secretary or treasurer of such an employer

until the billed premium on the cancelled policy is paid. The state

insurance fund shall have discretion to write a policy to such an

employer using the same terms as applicable to writing a policy of

insurance to a former policyholder that owes a balance on a prior policy

as provided under subdivision b of this section.

For purposes of this subdivision, "person" shall include individuals,

partnerships, corporations, and other associations.