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Home / Insurance / New law allows NYSIF to insure companies with unpaid balances

New law allows NYSIF to insure companies with unpaid balances



New York Governor Kathy Hochul signed a bill that would allow state-owned occupational injury insurers to issue insurance to a former policyholder even when that company has an unpaid balance from a previous insurance policy.

Ms. Hochul signed on Friday S9096 / A10078, a bill she said in a statement will restore the ability of thousands of state-owned companies to provide coverage with the New York State Insurance Fund.

NYSIF must insure all employers who apply for coverage regardless of risk. The insurer can cancel insurances only for non-premiums and was previously prevented from issuing new insurances to a company that still owed premiums on previous insurances.

According to a summary of the bill, NYSIF declared that approximately 3,775 companies were not eligible for coverage by 2020 because the applicants had outstanding balances on previous insurance policies. If NYSIF had written all of these insurances, the estimated premiums, if paid, would have exceeded $ 75.7 million.

On September 30, 2021

, 4,167 applicants were not considered eligible for coverage with NYSIF because they had not previously paid premiums. According to the bill analysis, the total estimated annual premium for the unique applications would have been more than $ 51.4 million.

WorkCompCentral is a sister magazine to Business Insurance. More stories here.


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