(Dewitt, New York, Jan. 16, 2017) - The Independent Insurance Agents & Brokers of New York (IIABNY) today commended introduction in both chambers of the New York State Legislature of its bill to protect employers against surprise Workers' Compensation premium hikes. Sen. Joseph E. Robach (R-C-I - Rochester) sponsored Senate Bill 1005, and Assem. Andrew D. Hevesi (D - Forest Hills) sponsored companion Assembly Bill 1620. IIABNY developed the legislation in response to concerns raised by its member insurance producers about the harmful effects of unexpected premium increases.

"New York State businesses have been entitled to advance notice of large premium increases for most types of insurance for years," said Jack Smith, Jr., CPCU, ARM, CIC, IIABNY’s chair of the board, "but not for Workers' Compensation. Current law allows an insurance company to hit an employer with a hefty premium hike literally at the last minute before a policy renews. Our members recognized this as unfair and brought it to the attention of the IIABNY board of directors. The board took action and produced a bill that will guarantee employers advance notice. This will give them time to work with their local independent agents and brokers and find out what their options are."

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. The IIABNY bill would require insurers to give employers and their insurance agents and brokers 30 days’ advance notice if the renewal policy will 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; state-approved formulas that modify the premium based on the employer’s past claim activity; and other state-mandated rate-adjustment programs.

"We wish to thank Assem. Hevesi and Sen. Robach for their leadership on this important bill," Smith said. "This common-sense measure will protect New York State small businesses from unexpected sticker shocks. We urge the Assembly and Senate to pass it swiftly."

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.