N.Y. WKC Law § 108 — New York Code / Act WKC / Article 6-A / Section 108
Payments into fund; returns; recoupment
Status: in_force

§ 108. Payments into fund; returns; recoupment. 1. On or before the\nfifteenth day of February, May, August and November, of each year, every\ncarrier shall file, quarterly, with the superintendent of financial\nservices and with the commissioner of taxation and finance, identical\nreturns, under oath, on a form to be prescribed and furnished by the\nsuperintendent of financial services, stating the amount of net written\npremiums for policies issued or renewed by such carrier, during the\nthree months' periods ending, respectively, on the preceding December\nthirty-first, March thirty-first, June thirtieth, and September\nthirtieth, to insure payment of compensation pursuant to this chapter\nand/or the longshore and harbor workers' compensation act and stating\nthe amount of dividends paid to policyholders during said period. For\nthe purposes of this section "net written premiums" shall mean gross\nwritten premiums less return premiums on policies returned "not taken"\nand on policies cancelled, but shall not mean premiums for reinsurance.\n  2. For the privilege of carrying on the business of workers'\ncompensation insurance in this state, every carrier shall pay into the\nfund for deposit in the workers' compensation security fund payment\naccount established pursuant to section eighty-nine-f of the state\nfinance law, upon filing each quarterly return, a sum equal to one per\ncentum, provided, however, that the superintendent of financial services\nmay require each carrier to pay into the fund not more than two per\ncentum, of its net written premiums, less the amount of dividends paid\nto policyholders, for the period covered by such return, except when\nsuspended in accordance with section one hundred nine of this article.\n  3. The provisions of this section shall not apply with respect to\npolicies containing coverage pursuant to subsection (j) of section three\nthousand four hundred twenty of the insurance law relating to every\npolicy providing comprehensive personal liability insurance on a one,\ntwo, three or four family owner-occupied dwelling.\n  4. The superintendent shall adopt a recoupment rate which shall enable\neach carrier to recoup over a reasonable length of time a sum reasonably\ncalculated to recover the payments by the carrier under this section by\nway of a surcharge on premiums charged for insurance policies to which\nthis section applies. Amounts recouped shall not be considered taxable\nfor the purposes of article thirty-three of the tax law.\n  5. The amount of any surcharge on premiums pursuant to subdivison two\nof this section shall be separately stated on either a billing or policy\ndeclaration sent to an insured. The superintendent shall determine the\nrate of the surcharge and the collection period and these shall be\nmandatory for all carriers. Carriers who collect surcharges in excess of\npayments made pursuant to this section shall remit the excess to the\nsuperintendent within one hundred twenty days after the end of the\ncollection period determined by the superintendent. The excess shall\nfirst be applied to reimburse, on an equitable basis, those carriers who\nare unable to collect surcharges equal to their paid assessments, and\nany excess thereafter shall be retained by the fund to reduce future\nassessments.\n  6. The statement of the amount of surcharge required to be provided by\nsubdivision five of this section shall include a description of, and\npurpose for, the New York Workers' Compensation Security Fund, as\nfollows:\n  "Companies writing workers' compensation insurance business in New\nYork are required to participate in the New York Workers' Compensation\nSecurity Fund. If a company becomes insolvent, the security fund settles\nunpaid claims and assesses each insurance company for its fair share.\n  New York law requires all companies to surcharge policies to recover\nthese assessments. If your policy is surcharged 'NY surcharge', an\namount will be displayed on your premium notice."\n