(DeWitt, New York, May 8, 2014) — The Independent Insurance Agents & Brokers of New York today called on state lawmakers to pass measures to give businesses new protections under the Workers’ Compensation system.
“The vast majority of New York businesses want to honor their Workers’ Compensation obligations,” said IIABNY Chair of the Board Andrew Kaufman. “Unfortunately, their insurance providers sometimes make that difficult. Surprise last-minute premium increases put unnecessary pressure on business owners.”
Senator Joseph Robach (R-Rochester) today introduced Senate Bill 7268. Assemblyman Andrew Hevesi (D-Queens) introduced a companion, Assembly Bill 9224, last month. It would require insurers to notify employers far in advance when they intend to renew Workers’ Compensation policies with significant changes.
When most commercial insurance policies renew, state law requires insurers to notify businesses of major coverage changes and large premium increases. However, this law does not apply to Workers’ Compensation policies. An insurer may legally tell an employer the day before its policy expires that the renewal premium will double. Such little notice does not allow the employer enough time to shop for another policy.
The Assembly and Senate Bills would require insurers to give employers and their insurance agents and brokers 60 to 120 days’ advance notice if the renewal policy will:
- Contain an increased deductible
- Offer a reduced potential premium dividend
- Increase the premium by more than 10 percent.
Insurers would not have to provide notice of a premium increase that results from changes in state-approved premium loss costs; growth of the employer’s payroll; or state-approved formulas that modify the premium based on the employer’s past claim activity.
The bill also would require insurers to provide loss information to employers upon request.
"We believe these modest changes will provide more certainty for businesses without unduly hampering insurers’ ability to underwrite their risks,” Kaufman said. “We ask the members of the Assembly and Senate to enact them swiftly and send them to the governor for his approval.”
The Independent Insurance Agents & Brokers of New York, Inc. has represented the common business interests of independent insurance professionals since 1882. More than 1,750 agencies and their 13,000 plus employees currently rely on the DeWitt, New York-based not-for-profit trade association for legislative advocacy, continuing education and other means of industry support. In addition, most IIABNY members proudly identify themselves as Trusted Choice® agents and brokers, a national consumer brand uniting more than 21,000 independent agencies across the United States. For more information, go to www.trustedchoice.com or www.iiabny.org.