S 5327: Relates to the requirement for policyholders to provide notice to withdraw from the state insurance fund.

  
  STATE OF NEW YORK ________________________________________________________________________ 5327 2025-2026 Regular Sessions  IN SENATE February 20, 2025 ___________ Introduced by Sens. BAILEY, GALLIVAN, MATTERA, MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the workers' compensation law, in relation to the requirement for policyholders to provide 30-days notice to withdraw from the state insurance fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision a of section 94 of the workers' compensation 2 law, as amended by chapter 635 of the laws of 1996, is amended to read 3 as follows: 4 a. Any employer may, upon complying with subdivision two or three of 5 section fifty of this chapter, withdraw from the fund by turning in 6 [his] their insurance contract for cancellation, provided [he has] they 7 have given written notice to the fund of [his] their intention to with- 8 draw not less than thirty days before the effective date of such cancel- 9 lation. Upon receipt of such notice the fund shall, at least ten days 10 prior to the effective date file in the office of the [chairman] chair a 11 notice of such cancellation date. 12 In no event shall the insurance contract be deemed cancelled until at 13 least ten days after the date of such filing, any earlier date mentioned 14 in the notice to the contrary notwithstanding. 15 If an employer withdraws from the fund upon complying with subdivision 16 two of section fifty of this chapter, the new insurance contract with 17 the stock corporation, mutual corporation or reciprocal insurer shall be 18 deemed not to take effect until the cancellation of such employer's 19 contract with the state insurance fund has become effective. 20 The requirements of this subdivision shall not apply when an employer 21 has given written notice to the fund of their intention to withdraw, 22 which shall include the effective date of such cancellation and proof 23 that the employer has complied with subdivision two of section fifty of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09816-01-5 
 S. 5327 2 1 this chapter. The effective date of cancellation of such employer's 2 contract with the state insurance fund shall be the date that the new 3 insurance contract with the stock corporation, mutual corporation or 4 reciprocal insurer takes effect. 5 § 2. This act shall take effect on the ninetieth day after it shall 6 have become a law.