NY Work Comp L § 50 (2021)
2021 New York Laws WKC - Workers' Compensation Article 4 - Security for Compensation 50 - Security for Payment of Compensation.

§  50.  Security for payment of compensation. An employer shall secure compensation to his employees in one or more of the following ways:   1. By insuring and keeping insured the payment of such compensation in the state fund, or   2. By insuring and keeping insured the payment  of  such  compensation with  any  stock  corporation,  mutual corporation or reciprocal insurer authorized to transact the business of workers'  compensation  insurance in this state through a policy issued under the law of this state.   3.  By  furnishing  satisfactory  proof  to the chair of his financial ability  to  pay  such  compensation  for  himself,  or  to   pay   such compensation  on  behalf  of  a  group  of  employers in accordance with subdivision ten of this section, in which case the chair  shall  require the  deposit  with  the  chair  of such securities as the chair may deem necessary of the kind prescribed in subdivisions one, two,  three,  four and  five,  and subparagraph (a) of paragraph three of subdivision seven of section two hundred thirty-five of the banking law, or the deposit of cash, or the filing  of  irrevocable  letters  of  credit  issued  by  a qualified  banking  institution  as  defined by rules promulgated by the chair or the filing of a bond of a surety company authorized to transact business in this state, in an amount to be determined by the  chair,  or the posting and filing as aforesaid of a combination of such securities, cash,  irrevocable  letters of credit and surety bond in an amount to be determined by the chair, to secure his liability to pay the compensation provided in this chapter. Any such surety bond must be  approved  as  to form  by the chair. If an employer or group of employers posts and files a combination of securities, cash, irrevocable  letters  of  credit  and surety bond as aforesaid, and if it becomes necessary to use the same to pay the compensation provided in this chapter, the chair shall first use such  securities  or cash or irrevocable letters of credit and, when the full amount thereof has been exhausted, he shall then require the surety to pay forthwith to the chair all or any part of the penal  sum  of  the bond  for  that  purpose. The chair may also require an agreement on the part of the employer or group of employers to pay  any  awards  commuted under section twenty-seven of this chapter, into the special fund of the state  fund,  as  a  condition  of his being allowed to remain uninsured pursuant to this section. The chair shall have the authority to deny the application  of  an  employer  or  group  of  employers  to   pay   such compensation  for himself or to revoke his consent furnished, under this section at any time, for good cause shown.  The  employer  or  group  of employers  qualifying  under  this  subdivision  shall  be  known  as  a self-insurer.   If for any reason the status of an  employer  or  group  of  employers under this subdivision is terminated, the securities or the surety bond, or  the  securities,  cash,  or irrevocable letters of credit and surety bond, on deposit referred to herein shall remain in the custody  of  the chair for such time as the chair may deem proper and warranted under the circumstances.  In lieu thereof, and at the discretion of the chair, the employer, his  or  her  heirs  or  assigns  or  others  carrying  on  or liquidating  such  business,  may  execute  an  assumption  of  workers' compensation liability insurance policy as described herein. Separately, the chair may execute an assumption of workers'  compensation  liability insurance  policy  as  described  herein  on behalf of the special funds created under the provisions of subdivisions eight and nine  of  section fifteen  and  section twenty-five-a of this chapter, and notwithstanding any provision to the contrary the chair may  execute  an  assumption  of workers'  compensation  liability  insurance  policy  on  behalf  of the uninsured  employers'  fund.  An  assumption  of  workers'  compensation liability policy referred to herein shall secure such further and future  contingent  liability  as  may  directly  or indirectly arise from prior injuries to workers and be incurred by reason of any change in condition of such workers  warranting  the  board  making  subsequent  awards  for payment  of  additional  compensation.  Such  policy  shall be in a form approved by the superintendent of financial services and issued  by  the state  fund  or  any  insurance  company licensed to issue this class of insurance in this state or, upon application by  the  chair,  any  other insurance  company deemed by the superintendent of financial services to be an acceptable issuer. In the event that such policy is issued  by  an insurance  company  other than the state fund, then said policy shall be deemed of the kind specified in paragraph fifteen of subsection  (a)  of section  one  thousand  one  hundred  thirteen  of the insurance law and covered by the  workers'  compensation  security  fund  as  created  and governed by article six-A of this chapter. It shall only be issued for a single  complete  premium  payment  in  advance  and in an amount deemed acceptable by the chair and the superintendent of financial services. In lieu of the applicable premium charge ordinarily required to be  imposed by  a carrier, said premium shall include a surcharge in an amount to be determined by the chair to: (i) satisfy all assessment liability due and owing to the board and/or the chair under this chapter; and (ii) satisfy all future assessment liability under this section, and which  surcharge shall  be  adjusted  from  time  to  time  to reflect any changes to the assessment  of  group  self-insured  employers,  including  any  changes enacted  by  the  chapter  of  the  laws of two thousand eleven amending sections fifteen  and  one  hundred  fifty-one  of  this  chapter.  Said surcharge shall be payable to the board simultaneous to the execution of the  assumption  of  workers'  compensation  liability insurance policy. However, the payment of said surcharge does not relieve the carrier from any other liability, including liability owed to the  superintendent  of financial  services  pursuant  to  article  six-A  of this chapter. When issued such policy shall be non-cancellable  without  recourse  for  any cause during the continuance of the liability secured and so covered.   3-a.  Group  self-insurance.  (1) Definitions. As used in this chapter the term "employers" shall include: (a) employers with related  activity in  a  given industry which shall include municipal corporations as that term is defined in sections two and six-n of the general municipal  law, employing  persons  who  perform  work  in  connection  with  the  given industry,  (b)  an  incorporated  or   unincorporated   association   or associations  consisting  exclusively  of  such  employers provided they employ persons who perform such related work in the given industry,  and (c)  a  combination of employers as described in subparagraph (a) hereof and  an  association  or  associations  of  employers  as  described  in subparagraph (b) hereof.  (2) (a) Any group consisting exclusively of such employers may adopt a plan  for  self-insurance,  as  a group, for the payment of compensation under this chapter to their employees, except that  no  new  groups  may adopt  such  a plan, and no group not composed solely of public entities set forth in paragraph a of subdivision four of this section may  insure any  liabilities  for  any  employers  on  and  after January first, two thousand twelve, except  as  provided  for  in  paragraph  ten  of  this subdivision. Under such plan the group shall assume the liability of all the  employers  within  the group and pay all compensation for which the said employers are liable under this chapter, except that in the case of municipal corporations as herein defined no proof of  financial  ability or  deposit  of  securities or cash need be made in compliance with this subdivision. The group qualifying under this subdivision shall be  known as  a  group  self-insurer  and  the employers participating therein and covered thereby shall be known as members.  (b) Where such plan is adopted the group  self-insurer  shall  furnish satisfactory  proof  to  the  chair of its financial ability to pay such compensation for  the  members  in  the  industry  covered  by  it,  its revenues,  their  source  and  assurance of continuance. The chair shall require  the  deposit with the chair of such securities as may be deemed necessary of the kind prescribed in subdivisions one, two,  three,  four and  five,  and subparagraph (a) of paragraph three of subdivision seven of section two hundred thirty-five of the banking law or the deposit  of cash  or  the  filing  of  irrevocable  letters  of  credit  issued by a qualified banking institution as defined by  rules  promulgated  by  the chair or the filing of a bond of a surety company authorized to transact business  in  this  state,  in  an amount to be determined to secure its liability to pay the compensation of each employer  as  above  provided. Such  surety  bond  must  be approved as to form by the chair. The chair shall require each group self-insurer to provide regular reports no less than annually, which  shall  include  but  not  be  limited  to  audited financial   statements,   actuarial  opinions  and  payroll  information containing proof that it  is  fully  funded.  Such  reports  shall  also include   a  contribution  year  analysis  detailing  contributions  and expenses associated with each specific contribution year.  For  purposes of this paragraph, proof that a group self-insurer is fully funded shall at  a  minimum  include  proof  of  unrestricted  cash  and  investments permitted by regulation of the chair of at least one hundred percent  of the total liabilities, including the estimate presented in the actuarial opinion  submitted  by  the  group  self-insurer in accordance with this chapter. The chair by regulation, may set  further  financial  standards for  group self-insurers. Any group self-insurer that fails to show that it is fully funded shall be deemed underfunded, and must submit  a  plan for achieving fully funded status which may include a deficit assessment on members of such group self-insurer which shall be subject to approval or  modification  by  the  chair.  The  amount of such under-funding, as measured by the actuarial opinion or assumption of loss policy quotation submitted by the group, shall be considered unfunded claims as set forth in subdivision two of section sixteen hundred  eighty-q  of  the  public authorities  law  as added by section 35 of Part GG of chapter 57 of the laws of 2013.  (c) The chair shall evaluate, no less than once every three  years,  a group  self-insurer's  compliance  with  the  financial  and  regulatory requirements for self-insurance. The  chair  may  engage  any  qualified person  or  organization  to  assist  with such evaluation and any costs incurred by the chair shall be borne by  the  group  self-insurer  under examination. Failure to submit to such independent review or to pay such costs,  upon  demand  of  the  chair,  shall  be  sufficient  grounds to terminate coverage of the group self-insurer.  (d) The chair may require  reports  to  be  prepared  by  an  auditor, actuary  or  other  consultant, selected by the board or, at the chair's discretion, by the  group  self-insurer  from  a  list  which  shall  be pre-approved  by  the  chair to determine whether the group self-insurer meets the  financial  criteria  for  self-insurance.  All  actuaries  so selected  shall  be  fellows  or  associates  of  the casualty actuarial society.  (e) The chair may also require that any and all agreements,  contracts and  other  pertinent  documents  relating  to  the  organization of the members in the group self-insurer shall be filed with the chair.  (f) The chair shall have the authority  to  revoke  consent  furnished under this section at any time for good cause shown.  (g)  Prior  to  the  requested  effective  date  of  the participating agreement, a group self-insurer shall notify the chair on  a  prescribed  form  of  a  new  group  self-insurer  member  and  file  (1)  a  member application  and  (2)  a  copy  of  the  properly  executed   prescribed participation  agreement wherein the member acknowledges their joint and several obligation for their period of membership. The board shall, on a form promulgated by the chair, provide notice of the member's rights and responsibilities  as a group self-insurer member, including the member's assumption of joint and several liability, and  require  the  member  to return a signed copy to the chair as a condition of membership.  (h)  Any  member  terminating membership in a group self-insurer after less than four years in such group self-insurer, and  any  member  in  a group self-insurer that has defaulted, shall be precluded from obtaining prospective  coverage  from  any  group  self-insurer for a period of at least three years from the effective date of termination.  (3) A member's participation in a group self-insurer shall not relieve it of its liability for compensation prescribed by this  chapter  except by  the  payment  thereof  by  the group self-insurer or by itself. Each member shall be responsible, jointly and severally, for all  liabilities of  the group self-insurer provided for by this chapter occurring during its respective period of membership, and such liability shall attach  to any recipient of a conveyance of assets made in violation of subdivision (a)  of section two hundred seventy-four of the debtor and creditor law. As between the  employee  and  the  group  self-insurer,  notice  to  or knowledge  of  the  occurrence  of  the injury on the part of the member shall be deemed notice or knowledge, as the case may be, on the part  of the  group  self-insurer;  jurisdiction  of  the  member  shall, for the purpose of this chapter, be jurisdiction of the group  self-insurer  and such  group  self-insurer shall in all things be bound by and subject to the  orders,  findings,  decisions  or  awards  rendered   against   the participating   member   for  the  payment  of  compensation  under  the provisions  of  this  chapter.  The  insolvency  or  bankruptcy   of   a participating  member  shall not relieve the group self-insurer from the payment of compensation for injuries or death sustained by  an  employee during the time the member was a participant in such group self-insurer. Notice  of  termination of a participating member shall not be effective until at  least  ten  days  after  notice  of  such  termination,  on  a prescribed  form,  has  been  either filed in the office of the chair or sent by certified or registered letter, return  receipt  requested,  and also  served  in  like  manner  upon  the  member.  In  the  event  such termination is due to a member's failure to pay required  contributions, such member's termination shall not be rescinded more than three times.  (4)  Each  group  self-insurer, in its application for self-insurance, shall set forth the  names  and  addresses  of  each  of  its  officers, directors,  trustees, third party administrator and group administrator. Notice of any change in the officers, directors, trustees,  third  party administrator  or group administrator shall be given to the chair within ten days thereof. No officer, director, trustee, employee,  third  party administrator  or  group  administrator  of  the  group self-insurer may represent or participate directly or indirectly on behalf of an  injured worker  or  his  dependents in any workers' compensation proceeding. All employees of members participating in group self-insurance shall be  and are deemed to be included under the group self-insurance plan.  (5)  (a)  Each group self-insurer shall secure the services of a group administrator to be responsible for assisting the group self-insurer  in complying  with  the  provisions  of  this  section  and  the  rules and regulations  promulgated  hereunder,  and  for   coordinating   services including  but  not  limited  to claims processing, loss control, legal, accounting and actuarial services. No person, firm or corporation  shall coordinate  such  services  or  otherwise carry out the tasks of a group  administrator as provided in this  subdivision  or  in  the  regulations issued  pursuant  thereto  on behalf of a group self-insurer unless such person shall have obtained from the chair a license  authorizing  it  to act  as a group self-insurer administrator, which license may be revoked for good cause. The chair shall promulgate regulations setting forth any additional qualifications for such license, governing  the  conduct  and compensation of group self-insurer administrators, and setting a license fee  in  an amount not less than five thousand dollars per year for such license for each group self-insurer the administrator administers.  Each administrator  shall  post a bond in the amount of five hundred thousand dollars for each group self-insurer administered or such other amount as may be set by the chair based on the cost and availability of such bond, from which the chair may recover any recoveries or penalties against the administrator under this section. Nothing in this section shall  relieve the  trustees  of  a group self-insurer of any fiduciary obligation they hold to the other members of such group self-insurer.  (b) A group administrator that knowingly and with  intent  to  mislead makes  a  material  misrepresentation  of  a material fact in soliciting members in a group self-insurer shall be guilty of  a  class  E  felony. Additionally, the chair may impose a civil penalty of up to ten thousand dollars for each such violation.  (c)  A group administrator, actuary or accountant that knowingly makes a material misrepresentation of a material fact concerning the financial status of any group self-insurer to the chair or board, or in its annual report to members of the group self-insurer, shall be guilty of a  class E  felony. The chair may impose a civil penalty of up to twenty thousand dollars for each such violation. A second and  subsequent  violation  of this  paragraph  shall  be  a class D felony. The chair may recover in a civil  action  any  damages  resulting  from  such   misrepresentations, including the value of any amount assessed against any entities that are not  members  of  the defaulted self-insurer that resulted from any such misrepresentation.  (d) (1) A group administrator shall provide an annual  written  report to  all  members  of the group self-insurer and to the board which shall include:   a. the members of the group self-insurer;   b. the group administrator and trustees;   c. the results of the most recent financial audit;   d. the percentage of total liabilities held  by  the  self-insurer  in unrestricted  cash and investments permitted by regulation as determined in  accordance  with  subparagraph  (b)  of  paragraph   two   of   this subdivision;   e. the number and amount of rate deviations provided to members during the  prior  year  and  whether the recipient of any such deviation was a trustee; and   f. such other information as the chair may direct.   The group administrator shall  provide  a  copy  of  the  most  recent financial audit to any group self-insurer member upon written request.  (2)  The  chair shall make available to the public, on its website and in writing upon request:   a. the identity of all group self-insurers that have provided workers' compensation under this subdivision in the prior three years;   b. the group administrator of each such group self-insurer;   c. the financial condition of all group self-insurers as determined by the board in  the  last  financial  audit  and  the  board's  regulatory definition of assets; and   d. such other information as the chair may direct, but which shall not include any confidential or proprietary information.    The board may direct the disclosure of any non-proprietary information regarding any group self-insurer, including whether a member is a member thereof, to any claimant upon a showing of need.  (e)  (1)  The  chair  may  condition the issuance or continuation of a license  under  this  subdivision  upon  the  presentation  by  a  group administrator  of  such  information  as the board requests, at any time chosen by the chair or at regular intervals, including but  not  limited to  the annual financial statements of the group administrator detailing the  compensation  the  administrator  and   its   substantially   owned affiliated  entities,  as  defined  in section two of this chapter, have received or shall receive from the group self-insurer  or  its  members, and  the  method  by  which  such  compensation  has  been  or  will  be calculated. The chair may issue  regulations  governing  the  method  of calculating  compensation  which  a  group  administrator  may  receive, including restrictions on the process by which such compensation may  be set.  (2)  The  chair may revoke the license of any group administrator that receives compensation in violation of such regulations, and may impose a penalty of up to two times any compensation so received.  (f) (1) No officer or director of, or person holding five  percent  or more ownership interest in, a group administrator shall within two years of serving in such capacity or holding such ownership interest, serve in any  capacity  or hold any ownership interest in a workers' compensation carrier that provides or solicits the provision  of  compensation  under this  title  for  any  employer  that  is  or was a member of such group self-insurer. No officer or director of, or person holding five  percent or  more ownership interest in a group administrator shall serve in such capacity or hold such ownership interest in a carrier that  provides  or solicits excess coverage for any group self-insurer administered by such administrator.  (2) The chair may impose a civil penalty of up to ten thousand dollars for each violation of this paragraph.  (g)  Each  group  self-insurer shall submit to the chair copies of any agreement or contract with an entity that serves or will  serve  as  its group administrator, accountant, actuary or third party administrator at least  thirty days prior to becoming effective, and the effectiveness of such contract shall be conditioned on the absence of an objection by the board during the thirty day period. Contracts that shall be  subject  to such  objection  shall  include any contract in violation of regulation; and any contract  that  does  not  provide  reasonable  cancellation  or renewal  terms,  including any contract that requires an affirmative act by the trustees of the group self-insurer to prevent automatic  renewal, or  that  does not permit cancellation for negligence, violation of law, or other good cause.  (6) (a) Group self-insurers must file  with  the  board,  as  soon  as practicable  but no later than sixty days prior to the start of the fund year a rating plan  which  is  supported  by  an  actuarial  rate  study prepared  by  an  independent,  qualified  actuary  that  is a fellow or associate of the casualty actuarial society, that clearly identifies the actuary's indicated rate assumptions therein. The rating plan must apply consistently to all members, and must provide for a common renewal  date for  all  group  self-insurer  members.  The rates filed can be adjusted based on an experience  modification  calculated  for  every  member  in accordance  with  the experience rating plan promulgated by the workers' compensation rating board.  Experience  modification  formulas  must  be applied  identically  to  all  members.  Other  rate  deviations  may be permissible provided a  plan  has  been  approved  by  the  board.  Such deviations  shall  not  be  in  excess  of  ten percent of the actuary's  indicated rate unless otherwise approved by the board for a fully funded group self-insurer, and shall in no event result in  amounts  less  than the  actuary's  overall  indicated rate. The chair by regulation may set further rate plan and actuarial reporting standards.  (b)  If  the  chair  has  cause to believe that a group self-insurer's contribution rates including experience modifications do not conform  to the  requirements of this part then he or she may require the submission of a report identifying the contributions paid by each  of  the  members for  the  preceding  year,  the  projected  contributions for each group self-insurer member for the current fiscal year, and the manner in which such contributions were calculated. If, after review by the  chair,  the group  self-insurer's contribution rates are deemed to be detrimental to its solvency, the chair may mandate that the group  self-insurer  modify such rates as the chair directs. The chair may impose a penalty of up to five  thousand  dollars for each violation of this subparagraph. A group self-insurer's failure to adhere to the rating structure  determined  by the board shall constitute good cause for termination.  (7)  (a)  If  for any reason, the status of a group self-insurer under this subdivision is terminated, including by operation  of  law  on  and after  January first, two thousand twelve, the securities or cash or the surety bond on deposit referred to herein shall remain in the custody of the chair for such time as the chair may deem proper and  warranted.  In lieu   thereof,   and   at  the  discretion  of  the  chair,  the  group self-insurer, its heirs or assigns or others carrying on or  liquidating such group self-insurer, including the chair on the group self-insurer's behalf,  may  execute  an  assumption of workers' compensation liability insurance policy securing such further and future  contingent  liability as may arise from prior injuries to workers and be incurred by reason of any  change in the condition of such workers warranting the board making subsequent awards for payment of additional  compensation.  Such  policy shall  be in a form approved by the superintendent of financial services and issued by the state fund or any insurance company licensed to  issue this  class of insurance in this state. In the event that such policy is issued by an insurance company other than  the  state  fund,  then  said policy  shall  be  deemed  of the kind specified in paragraph fifteen of subsection (a) of section one  thousand  one  hundred  thirteen  of  the insurance  law and covered by the workers' compensation security fund as created and governed by article six-A of this chapter. It shall only  be issued  for  a  single  complete premium payment in advance by the group self-insurer and in an amount deemed acceptable by  the  chair  and  the superintendent of financial services.  In lieu of the applicable premium charge  ordinarily  required  to  be  imposed by a carrier, said premium shall include a surcharge in an amount to be determined by the chair to: (i) satisfy all assessment liability due and owing to the  board  and/or the  chair  under  this  chapter; and (ii) satisfy all future assessment liability under this section, and which surcharge shall be adjusted from time to  time  to  reflect  any  changes  to  the  assessment  of  group self-insured  employers, including any changes enacted by the chapter of the laws of two  thousand  eleven  amending  sections  fifteen  and  one hundred  fifty-one  of  this chapter. Said surcharge shall be payable to the board simultaneous to the execution of the  assumption  of  workers' compensation  liability  insurance  policy. However, the payment of said surcharge does  not  relieve  the  carrier  from  any  other  liability, including  liability  owed  to  the superintendent of financial services pursuant to article six-A of this chapter. When issued such policy shall be noncancellable without recourse for any cause during the  continuance of the liability secured and so covered.  (b)  The  chair  shall  levy an interim assessment on the members of a defaulted group self-insurer within one  hundred  twenty  days  of  such default  or  of  the  effective  date  of the chapter of the laws of two thousand eight which amended this subdivision, whichever is  later,  and against  the  members  of  any  other terminated group self-insurer when necessary, for such an amount as he or she determines to be necessary to discharge all liabilities  of  the  group  self-insurer,  including  the reasonable  cost  of  liquidation  such  as claims administration costs, actuarial and accounting services, and the value of  future  assessments on  members  of such group self-insurer as they are known at the time of the assessment. The chair may  impose  subsequent  and  further  deficit assessments,  or return funds to members, to adjust the moneys collected to reflect the time of participation, and percent of group  self-insurer liabilities  for  such  time. The time limitations included in the first sentence of this subparagraph do not apply  to  the  imposition  of  any subsequent  and  further  deficit  assessments  that  exceed the interim assessment made by the  chair  against  members  of  a  defaulted  group insurer   or   members  of  any  other  terminated  group  self-insurer. Notwithstanding any such action by the chair, each member of  the  group self-insurer  shall  remain  jointly  and  severally responsible for all liabilities provided by  this  chapter  including  but  not  limited  to outstanding  and  estimated future liabilities and assessments. Further, separate and apart from, and in addition to a member's joint and several liability and notwithstanding any payments made by any other members  of the  group self-insurer pursuant to this subparagraph, in the event that a member neglects or fails to pay an assessment levied pursuant to  this subparagraph,  the  member  shall be deemed in default in the payment of compensation. Such defaulting  member  is  subject  to  the  enforcement provisions  of section twenty-six of this chapter for the payment of all compensation relative to awards due and owing on  claims  filed  by  the employees  of  such  member that have neither been paid by the member or the group self-insurer. Nothing in  this  paragraph  shall  prevent  the chair  from offering payment plans or settling claims against members of any group self-insurer as necessary to facilitate collection.  (c) Upon the assumption of the  assets  and  liabilities  of  a  group self-insurer  by the chair or his or her designee pursuant to regulation of the chair, all records,  documents  and  files  of  whatever  nature, pertaining  to  the group self-insurer, be they in the possession of the group self-insurer or a third party, and all  remaining  assets  of  the group  self-insurer,  shall  become  the  property  of  the  chair.  All custodians of such records and/or funds shall turn over to the chair  or his designee all such original records upon demand.  (8)  All the provisions of this chapter relating to self-insurance and the  rules  and  regulations  promulgated  thereunder  shall  be  deemed applicable  to  group  self-insurance.  The  chair  shall  implement the provisions of this subdivision by promulgating rules and regulations but no such rules or regulations shall be necessary  for  any  provision  of this  subdivision  to be effective. The chair may impose a civil penalty of up to ten thousand dollars  for  each  violation  against  any  group self-insurer  that  violates any provision of this subdivision or of any regulation issued pursuant thereto for which  a  civil  penalty  is  not specified.  (10)  (a)  A  non-municipal group of employers may make application to the chair to qualify jointly as a self-insurer, provided:  (1) The members of the group secure the services of an  administrator, who shall carry out the responsibilities of such an administrator as set forth  in  subdivision five of this section, and who shall be subject to  the restrictions and penalties applicable to an administrator under this section;  (2)  The  members of the group, through the administrator, (a) jointly deposit sufficient securities in accordance with  subdivision  three  of this section or in a trust governed in accordance with Part 126 of title 11 of the New York code of rules and regulations to secure the liability of  the members of the group to pay for all existing claims obligations, provided such deposit shall be made  by  November  first,  two  thousand eleven,  (b)  jointly  deposit  sufficient securities in accordance with subdivision three of this section or in a trust governed  in  accordance with  Part 126 of title 11 of the New York code of rules and regulations to secure all anticipated present and future claims of  the  members  of the  group,  by  November  first, two thousand fourteen, provided annual deposits are made in accordance with a schedule set by the chair  on  or before  November first of each year, and provided that the deposit shall be deemed an asset of the group  for  the  purpose  of  determining  its funding  status,  and  (c)  by  November  first, two thousand eleven and thereafter, shall maintain funds sufficient for  all  other  liabilities besides  claims in a trust governed in accordance with Part 126 of title 11 of the New York code of rules and regulations,  of  which  the  board shall be the sole beneficiary, and the terms of the trust agreement, and the  trustee,  shall  be  approved  by  the  chair  in  his  or her sole discretion, and provided that any group self-insurer that does not  hold such  funds in a trust that meets the terms of this paragraph shall post them with the board;  (3) The group has been authorized  by  the  chair  to  self-insure  in accordance  with  this  subdivision  prior to the effective date of this paragraph;  (4) The group's  members  or  participant  employers  either  (a)  are parties to collective bargaining agreements with the same unions; or (b) fall  within  a limited number of payroll classifications, as set by the chair, after giving due consideration to the risks associated  with  any group  of  employers  self-insuring. However, employers that were active prior to the effective date of this  section  and  whose  classification codes do not meet the limitations on payroll classification codes or are not  parties  to  collective  bargaining agreements with the same unions will be permitted to remain in the trust provided (a) they  continue  to meet  the  other  terms  and  conditions  of  the trust; and (b) any new members shall be subject to the limitations on  the  number  of  payroll classifications;  and  provided  further,  the  chair  shall revoke such permission in the  event  the  trust  violates  paragraph  six  of  this subdivision relating to filing of a rating plan;  (5)  The  group  was  fully  funded for three out of the previous five years and at least ninety percent funded for one other year out  of  the previous  five  years,  as determined by the chair following a financial review, and the group self-insurer has  sufficient  funds  to  meet  its liabilities;  (6) The group has a safety program acceptable to the chair; and  (7) The group is subject to such other limitations and requirements of this  subdivision  unless  waived by the chair and to regulations of the chair.  (b) The members of any such group shall enter into an agreement  among themselves and with the group's administrator which shall, at a minimum:  (1)  Indicate  that  each  of  the members of the group is jointly and severally liable for any liabilities of the group; and  (2) Provide for the collection of additional funds from group  members in  the  event  the  deposit  with the board is insufficient to meet the liabilities of the group.  (11) Former group self-insurer. Any group self-insurer that has ceased to self-insure, or has ceased to self-insure any new  liabilities  after January  first,  two thousand twelve in accordance with paragraph two of this subdivision, shall remain subject to all  the  provisions  of  this subdivision   and  the  regulations  issued  pursuant  thereto  and  any assessments provided for by this section until such time  as  the  group self-insurer no longer possesses any liabilities.  (12)  Any  non-municipal  group of employers authorized to self-insure under paragraph ten of this section  on  or  after  January  first,  two thousand twelve shall be deemed a "private self-insurer" for purposes of the  assessments set forth in sections fifteen and one hundred fifty-one of this chapter.   3-b. (a) Except as provided in subdivision three-d of this section, no person,   firm   or   corporation,   other   than   an   attorney    and counsellor-at-law, shall solicit the business of representing, or engage in  representing  self-insurers  or  group  self-insurers, as defined in subdivisions three and three-a of this section, before the board or  any officer, agent or employee of the board assigned to conduct any hearing, investigation  or  inquiry  relative  to  a  claim  for  compensation or benefits under this chapter, unless he shall be a citizen of the  United States  or  an  alien  lawfully  admitted for permanent residence in the United States, or a corporation organized under the laws of the state of New York, and shall have obtained from the board a  license  authorizing him  to  appear in matters or proceedings before the board. Such license shall be issued by the board in accordance with the rules established by it. Any person, firm or corporation violating the  aforesaid  provisions shall  be  guilty of a misdemeanor. The chair may impose a civil penalty of  up  to  one  thousand  dollars  for  each  violation   against   any representative  licensed  in  accordance with this section that violates any provision of this section  or  of  any  regulation  issued  pursuant thereto,  in  addition  to  any  other sanctions provided for under this chapter.  (b) The board, in its rules, may provide for the issuance of  licenses to  persons,  firms  or  corporations,  upon such proof of character and fitness as it may deem necessary, without annual license  fee,  and  for the  giving  of  a  bond running to the people of the state of New York, conditioned upon the faithful performance of all duties required of such person, firm or corporation, and in an amount to be fixed by  the  board in  its  rules.  Such bond shall be approved by the board as to form and sufficiency and shall be filed with it.  (c) There shall be maintained in each office of the board  a  registry or  list  of  all persons to whom licenses have been issued, as provided herein, which list shall be corrected as often as licenses are issued or revoked. Absence of record of the license issued,  as  herein  provided, shall  be prima facie evidence that a person, firm or corporation is not licensed to represent self-insurers.  (d) Any such license may be revoked by the board  for  cause  after  a hearing before it.  (e)  No  license  shall  be  issued hereunder for a period longer than three years from the date  of  its  issuance.  The  provisions  of  this section shall not apply to a regular employee of a self-insured employer or  to  the  state  insurance fund acting in accordance with an insuring agreement with the state as authorized pursuant  to  the  provisions  of section eighty-eight-c of this chapter.   3-c.  Notwithstanding any provision in this chapter or in any general, special or local law contained, all cash and securities  deposited  with the  chairman by an employer who is a party or a wholly owned subsidiary of a party to a plan heretofore or hereafter adopted under article seven  of the public service  law  by  the  transit  commission--  metropolitan division of the department of public service, and who is, or at the time of the consummation of such plan was, a self-insurer under this chapter, may  be  withdrawn  upon, or at any time after, the consummation of such plan as hereinafter provided. All cash and securities deposited  by  any such employer with and held by the chairman may be withdrawn upon, or at any  time after, the consummation of such plan where any city which is a party thereto and which is a self-insurer under this chapter assumes all liabilities of or claims against such employer under  this  chapter,  as follows:  (a), where such plan provides that such city shall acquire, or that such employer or his  assigns  shall  retain,  all  the  right  and interest  of  such  employer  in  the deposited cash and securities, the chairman shall surrender and deliver such cash and  securities  to  such city  or  to  such employer or his assigns, as the case may be, upon its demand, and (b), where such  plan  provides  that  such  city  and  such employer,  or  his assigns, shall each retain some right and interest in such cash and securities, the chairman shall surrender and deliver  such cash  and  securities  to  such city and to such employer or his assigns upon their joint demand as shall be specified therein.   3-d. The state insurance fund, an insurance company duly authorized or licensed to write workers'  compensation  insurance  in  this  state,  a subsidiary  or  an affiliate of such an insurance company, or a licensed or authorized adjusting company or association may apply for  a  license from  the  board  to  solicit the business of representing and engage in representing self-insurers, as defined  in  subdivision  three  of  this section, before the board or any officer, agent or employee of the board assigned  to conduct any hearing, investigation or inquiry relative to a claim for compensation or benefits under this chapter.  Any  corporation formed solely for the purpose of engaging in the activities described by this  subdivision  shall  be  formed  under the laws of the state of New York.   The state insurance fund, an  insurance  company,  its  subsidiary  or affiliate,  or  such  adjusting  company  or association shall designate those employees who are to appear in matters or proceedings  before  the board  on  behalf  of  self-insurers.  Such  employees  shall  obtain an authorization from the board. Upon application to  the  board  for  such authorization  all  such  employees  who,  on the effective date of this subdivision, have been appearing in matters or  proceedings  before  the board  on  behalf  of  insurers for a period of at least two years shall automatically receive a temporary authorization  from  the  board.  Such temporary  authorization  shall  remain  in  effect  until the applicant employee has been granted or denied final authorization  by  the  board. The  board in its rules shall provide for the issuance of authorizations to such employees and other designated employees. If the board,  in  its rules,  provides  for the issuance of authorization to persons, firms or corporations under subdivision three-b of this section upon  such  proof of  character  and  fitness  as it may deem necessary, the same proof of character and fitness shall be  required  for  an  authorization  issued under this subdivision.   The  state  insurance  fund,  an  insurance company duly authorized or licensed to write workers'  compensation  insurance  in  this  state,  a subsidiary  or  an affiliate of such an insurance company, or a licensed or authorized adjusting company or association shall apply to the  board for  the  issuance of a license upon such proof of character and fitness as the board may deem necessary. Such proof  of  character  and  fitness shall  be  the  same  as that required by the board of persons, firms or corporations under subdivision three-b of this  section.  If  the  board charges  a  fee  for  a license issued under subdivision three-b of this  section, the same amount shall be charged for  a  license  issued  under this subdivision. If the board requires for the giving of a bond running to  the  people  of the state of New York, conditioned upon the faithful performance  of all duties required of such person, firm, or corporation licensed under subdivision three-b of this section, the  same  shall  be required  for  a  license  under  this  subdivision.  Such bond shall be approved by the board as to form and sufficiency and shall be filed with it. All license and authorization fees collected under the provisions of this subdivision shall be paid into  the  state  treasury.  Any  person, insurance  company, its subsidiary or affiliate, or adjusting company or association which violates the aforesaid provisions  of  this  paragraph shall be guilty of a misdemeanor.   There  shall be maintained in each office of the board a registry list of all persons to whom authorizations and licenses have been  issued  as provided   herein,   which   list   shall   be  corrected  as  often  as authorizations and licenses are issued or revoked. Absence of record  of the  authorization or license issued, as herein provided, shall be prima facie evidence that a person, firm or corporation is not  authorized  or licensed  to  represent self-insurers. Any such authorization or license may be revoked by the board for cause after  a  hearing  before  it.  No authorization  or  license shall be issued hereunder for a period longer than three years from the date of its issuance.   The board shall make rules pertaining to when  conflicts  of  interest arise in individual cases which shall apply to those who are licensed or authorized  to represent self-insurers under subdivision three-b of this section or under this subdivision.   The provisions of article twenty-four of the insurance law, insofar as applicable,  shall  apply  to  the  state  insurance   fund,   insurance companies,  their  subsidiaries and affiliates or adjusting companies or associations in their activities representing self-insurers  before  the board.   3-e.  (a)  The  state insurance fund and any other insurer that issues policies of workers' compensation insurance shall offer at the option of the policyholder a deductible for  benefits  payable  under  a  workers' compensation policy with an annual premium of twelve thousand dollars or more,  if  in  the  opinion  of  the  state insurance fund or such other insurer the policyholder meets the eligibility requirements of paragraph (b) of this subdivision.  (b) A policyholder is eligible for a policy deductible for any renewal period of the policy if such policyholder has  paid  the  entire  billed premium  on  the policy for all policy periods within forty-five days of each billing for the past three years. A policyholder will  continue  to be  eligible  for  a  deductible provided that no part of any premium is more than forty-five days overdue from the date billed or  reimbursement for any deductible amount is unpaid by the policyholder to such insurer. The  state  insurance fund or any other insurer that has issued a policy with a  deductible  may  revoke  the  policyholder's  entitlement  to  a deductible  if  the  policyholder  fails  to  reimburse  any  deductible amounts, or pay any billed premium, within forty-five  days  after  such reimbursement or premium payment has become due. Upon such revocation of a  policyholder's entitlement to a deductible, the policyholder shall be entitled to cancel  such  policy  and  such  policyholder  will  forfeit eligibility for entitlement to a deductible as provided above.  (c)  Deductibles  shall  be offered by the state insurance fund or any other insurer in writing to eligible policyholders at the  beginning  of policy  periods,  in  the  amounts  of  one hundred dollars, two hundred dollars, three hundred dollars, four hundred dollars  and  five  hundred dollars,  and  thereafter, in increments of five hundred dollars up to a  maximum of  two  thousand  five  hundred  dollars  per  occurrence.  The eligible  policyholder  shall  select,  in  writing, only one deductible amount which shall be binding on such policyholder throughout the policy period.  (d)  If  the  policyholder selects a deductible under paragraph (c) of this subdivision,  workers'  compensation  benefits  payable  under  the policy shall be paid by the state insurance fund or other insurer liable under  the  policy  to  the person or provider entitled to such benefits without regard to any deductible applied to such policy. Upon payment of benefits on a claim up to or exceeding the deductible amount, the  state insurance   fund  or  other  insurer  shall  be  entitled  to  bill  the policyholder  for  reimbursement  up  to  the   deductible   amount.   A policyholder's failure to pay billed deductible reimbursement amounts to the  state insurance fund or other insurer under this paragraph shall be treated in the same manner as non-payment  of  premium  and  render  the policy  cancelable in accordance with the provisions of subdivision five of section fifty-four of this  article.  The  deductibles  paid  by  the insured  employer  during any one year period of the policy of insurance shall not exceed the annual premium for such policy of insurance.  (e) Premium reductions, in accordance with methodology approved by the superintendent of financial services shall  be  applied  to  any  policy written  with  a deductible. Such premium reductions shall be determined before the application of any experience modification premium  surcharge or premium discount.  (f)  The  New  York  workers' compensation rating board shall file for appropriate  premium  discounts  subject  to   the   approval   of   the superintendent of financial services.  (g)  The  state  insurance  fund,  any  other  insurer  or  any  group self-insurer  for  municipal  corporations  as  defined  in  subdivision three-a  of  this  section  may, at its option, offer a deductible in an amount  specified  in  paragraph  (c)  of  this   subdivision   to   any policyholder  who  is not otherwise eligible for a deductible under this subdivision.   4. a. A county, city, village, town, school district, fire district or other political subdivision of the state may secure compensation to  its employees  in  accordance  with  subdivision one, two or three-a of this section, and a public corporation  as  defined  in  subdivision  one  of section  sixty  of  this  chapter  may  also secure such compensation in accordance with article five of this chapter. If compensation is not  so secured,  a  county, city, village, town, school district, fire district or other political subdivision shall be deemed to have elected to secure compensation pursuant to subdivision three of this section and, in  such case,  no  proof  of  financial ability or deposit of securities or cash need be made in compliance with such subdivision. All other requirements prescribed by this chapter for employers so electing shall  be  complied with  and  notice  of  such  election shall be filed with the chair. For failure to file such notice of  election,  prescribed  in  form  by  the chair,  within  ten  days  after the election was made, the treasurer or other financial officer shall be liable to pay to the chair the  sum  of one  hundred  dollars  as  a  penalty,  to  be  transferred to the state treasury.   b. The treasurer or other fiscal officer of  a  self-insuring  county, city,  village,  town, school district, fire district or other political subdivision  shall,  upon  presentation  of  an  award  of  compensation forthwith  begin  payment  of  it  to  the  person  entitled  thereto in accordance with this chapter.   c. The governing board  of  a  county,  city,  village,  town,  school district, fire district or other political subdivision may authorize the  treasurer  or  other  fiscal  officer  of  such  municipal  corporation, district or political subdivision, as  the  case  may  be,  to  pay  the compensation provided for in this chapter to the person entitled thereto without  waiting  for  an  award  in  any case in the manner provided in section twenty-five of this chapter. The  amount  of  such  compensation payable   prior  to  an  award  pursuant  to  such  authorization  shall constitute a settled claim within the meaning of the local finance law.   d. A contract of insurance issued to a county or a town in  accordance with subdivision one or two of this section and in force on or after the first  day  of  March, nineteen hundred sixty-three, in relation to fire districts and on or after the first day of January, in the year in which this paragraph as  hereby  amended  becomes  effective  in  relation  to ambulance  districts shall contain a provision reading as follows: "This contract  does  not  provide  (1)  any  coverage  under   the   Workers' Compensation  Law  or  the  Volunteer  Firefighters'  Benefit Law or the Volunteer Ambulance Workers' Benefit Law for which any fire district  or ambulance  district  would  be  liable under such laws, (2) any workers' compensation benefits  for  fire  or  ambulance  district  officers  and employees  for  which  any  fire district or ambulance district would be liable under  the  Workers'  Compensation  Law,  or  (3)  any  volunteer firefighters'   or   ambulance   workers'  benefits  for  any  volunteer firefighters  or  volunteer  ambulance  workers  under   the   Volunteer Firefighters'  Benefit  Law  or the Volunteer Ambulance Workers' Benefit Law".   e. If for any reason the status of  a  county,  city,  village,  town, school  district,  fire district or other political subdivision of state is terminated, at  the  discretion  of  the  chair,  the  county,  city, village,  town,  school  district,  fire  district  or  other  political subdivision of state, may execute an assumption of workers' compensation liability insurance policy securing such further and  future  contingent liability as may arise from prior injuries to workers and be incurred by reason  of  any  change  in the condition of such workers warranting the board making subsequent awards for payment of  additional  compensation. Such  policy  shall  be  in  a  form  approved  by the superintendent of financial services and  shall  be  issued  by  the  state  fund  or  any insurance  company licensed to issue this class of policy in this state. In the event that such policy is issued by an  insurance  company  other than the state fund, then said policy shall be deemed to be insurance of the kind specified in paragraph fifteen of subsection (a) of section one thousand  one  hundred  thirteen of the insurance law and covered by the workers' compensation security fund as created and governed  by  article six-A  of  this chapter.   It shall only be issued for a single complete premium payment in advance by the county, city,  village,  town,  school district,  fire  district or other political subdivision of state and in an amount deemed acceptable by  the  chair  and  the  superintendent  of financial  services. In lieu of the applicable premium charge ordinarily required to be imposed by  a  carrier,  said  premium  shall  include  a surcharge  in  an  amount  to  be determined by the chair to satisfy all assessment liability due and owing to the board and/or the  chair  under this  chapter. Said surcharge shall be payable to the board simultaneous to the execution of the assumption of  workers'  compensation  liability insurance  policy.  However,  the  payment  of  said  surcharge does not relieve the carrier from any other liability, including  liability  owed to the superintendent of financial services pursuant to article six-A of this  chapter.  When issued such policy shall be non-cancellable without recourse for any cause during the continuance of the  liability  secured and so covered.    5.  Self-insurance.  "Self-insurance," as used herein, shall be deemed to be the system of securing compensation as  provided  in  subdivisions three,  three-a  and  four  of  this  section,  and article five of this chapter.   a.  The  chair shall administer all matters relating to self-insurance under this chapter. All penalties set forth in  subdivisions  three  and three-a  of  this  section  shall  be  paid  into the fund for uninsured employers provided for in section twenty-six-a of this chapter.   b. Advisory committee for individual self-insurance. (1) To advise the chair,  there  shall   be   an   advisory   committee   for   individual self-insurance,  which  shall  be  called  the  advisory  committee  for self-insurance and consist of  the  chair  and  ten  additional  members appointed  by  the  chair. Three of such members shall be named from the manufacturing  and  trade  group  of  self-insurance,  three  from   the transportation,  public utilities and construction group, and one member shall be a self-insurer selected at large by the chairman, who shall  be vice-chairman of the advisory committee. The chair shall be chair of the advisory committee; the secretary of the board shall act as secretary of the  advisory committee. Any member appointed to such advisory committee shall be a self-insurer or an officer of a self-insurer or a person  who on  account  of his or her employment or affiliation can be classed as a management representative of a self-insurer. The members of the advisory committee for self-insurance in office  at  the  time  this  subdivision takes  effect,  shall be and they are hereby continued in office as such for  the  remainder  of  the  terms  for  which  they   were   appointed respectively.   The   members  of  the  advisory  committee  for  self-insurance  next appointed, except to fill a vacancy created otherwise than by expiration of term, shall be appointed for terms of three years, except that of the three additional members to be appointed after May first,  two  thousand eight,  one  such  member  shall be appointed for an initial term of one year, one such member shall be appointed for  an  initial  term  of  two years,  and  one  such  member shall be appointed for an initial term of three years. No member shall be appointed to the advisory committee  for individual  self-insurance  if  he  or she has been convicted of a crime under this chapter or has been subject to criminal  or  civil  penalties under this subdivision. Vacancies shall be filled for the unexpired term by  appointment  by  the  chair.  Members shall continue in office until their successors are appointed; in the event that no appointment is made within three months after a vacancy exists or after  the  expiration  of the  term  of  a member, the remaining members may fill the vacancy by a majority vote. If a member shall be absent from two consecutive  regular meetings without adequate excuse his or her place may be declared vacant by  the  chair.  Members  of such advisory committee shall serve without pay, but shall be entitled to their reasonable and  necessary  traveling and  other  expenses  incurred  in connection with their duties. Regular meetings of the advisory committee shall be held twice a year, on  dates to be fixed by the chair. In addition, special meetings shall be held if called  by the chair or any five members of the committee. Such advisory committee shall have access to all self-insurance records  except  those restricted  by  the  chair or those whose disclosure is restricted under section one hundred ten-a of this chapter, and shall have the  power  to require  the  presence  before  it  of  any employee of the board or any self-insurer as reasonable and related to matters within the purview  of the committee. Information obtained by members of the advisory committee shall be deemed confidential unless disclosed by order of the committee. It  shall  be  the duty of the advisory committee to advise the chair on all matters relating to self-insurance, particularly in respect to rules  governing self-insurance, the deposit or withdrawal of  securities,  the standards  for  permitting  employers to self-insure under this section, the  appropriate  amount  of  security  or  payments  that  self-insured employers  must  provide,  and  on such other matters as the chair shall request.  The  chair  shall  detail  to  such  advisory  committee  such stenographic  or  other assistance as may be necessary. Minutes shall be kept of the meetings of the advisory committee  and  shall  be  provided within  forty-five days of such meeting to the governor and legislature, including the chairs of the assembly and senate committees on  insurance and labor.   c.  (1)  The  chair and the department of audit and control as soon as practicable after  May  first,  nineteen  hundred  sixty,  and  annually thereafter,  as soon as practicable after April first in each succeeding year, shall ascertain the total amount of net  expenses,  including  (a) administrative  expenses,  which  shall  include  the  direct  costs  of personal services, the cost of maintenance and operation,  the  cost  of retirement contributions made and workers' compensation premiums paid by the  State for or on account of personnel, rentals for space occupied in state owned or state leased buildings, and (b) all  direct  or  indirect costs incurred by the board during the preceding fiscal year in carrying out  the  provisions  of  subdivision three and three-a of this section. Such expenses shall be  adjusted  annually  to  reflect  any  change  in circumstances,  and  shall  be assessed against all private self-insured employers, including  for  this  purpose  active  and  terminated  group self-insurers,  active individual self-insured employers, and individual self-insured employers who have ceased  to  exercise  the  privilege  of self-insurance.  (2)   Such  expenses  shall  be  assessed  against  all  self-insurers including for this purpose employers who have  ceased  to  exercise  the privilege   of   self-insurance.  The  basis  of  apportionment  of  the assessment against each self-insurer  shall  be  a  sum  equal  to  that proportion   of   the  amount  which  the  indemnity  payment  for  each self-insurer bore to the total indemnity payments for all  self-insurers for  the  calendar  year  which  ended within the preceding state fiscal year. All such assessments when collected shall be deposited into a fund which shall be used to reimburse the appropriations theretofore made  by the state for the payment of the expenses of administering this chapter.  (3)  Pure  premium  for  assessments  made prior to January first, two thousand nine against individual and group self-insurers who  ceased  to self-insure  shall  be  based  on  payroll at the time the individual or group self-insurer has  ceased  to  self-insure,  reduced  by  a  factor reflecting  the  reduction  in  the  group  or individual self-insurer's self-insurance liabilities since ceasing to self-insure.   d. The chair may from time  to  time  request  the  superintendent  of financial  services  for assistance, and the superintendent of financial services is hereby authorized to render such assistance upon request  of the  chair,  as may be necessary to insure the financial ability of such group self-insurers to pay all liabilities provided by this chapter.   e. Notwithstanding the provisions of paragraph c of this  subdivision, the chair shall require that partial payments for expenses of the fiscal year  beginning April first, nineteen hundred eighty-three, and for each fiscal year thereafter shall be made on March  tenth  of  the  preceding fiscal  year  and  on June tenth, September tenth, and December tenth of each year, or on such other dates as the  director  of  the  budget  may prescribe, by each self-insurer. Provided, however, that the payment due March tenth, nineteen hundred eighty-three for the fiscal year beginning April  first,  nineteen hundred eighty-three shall not be required to be paid until June tenth, nineteen hundred eighty-three. Each such  payment  shall  be  a  sum equal to twenty-five per centum of the annual expenses assessed upon each self-insurer, as estimated by the chair. The  balance of  assessments  for  the  fiscal  year  beginning April first, nineteen hundred  seventy-three  and  each  fiscal year thereafter, shall be paid upon determination of the actual  amount  due  in  accordance  with  the provisions of paragraph c of this subdivision. Any overpayment of annual assessments  resulting  from the requirements of this paragraph shall be refunded or at the option of the chair shall  be  applied  as  a  credit against  the  assessment of the succeeding fiscal year. The requirements of this  subdivision  shall  not  apply  to  those  self-insurers  whose estimated annual assessment for the fiscal year is less than one hundred dollars  and  such  self-insurers  shall  make  a  single payment of the estimated annual assessment on or  before  September  thirtieth  of  the fiscal year.   f.  Whenever  the  chair  shall  determine  that  the compensation and benefits provided by this chapter may be unpaid by reason of the default of an insolvent private self-insured employer, including a private group self-insurer, the chair shall pay such compensation  and  benefits  from administration  expenses as provided in section one hundred fifty-one of this chapter upon audit and warrant of  the  comptroller  upon  vouchers approved  by  the  chair.  Such payments shall be considered expenses of administration. The chair shall be reimbursed therefor from  the  surety bond,  cash  or  securities  held or, if such surety bond, securities or cash  is  insufficient,  by  the  employer,  its  receiver,  liquidator, rehabilitator  or  trustee  in  bankruptcy. All moneys reimbursed to the chair or recovered by the chair in an action  or  proceeding  to  secure such  reimbursement  shall  forthwith be applied as a credit against the expenses on which the assessment levied upon  all  private  self-insured employers, in accordance with paragraphs c and e of this subdivision, is calculated.   g.  Whenever  the  chair  shall  determine  that  the compensation and benefits provided by this chapter may be unpaid by reason of the default of an insolvent private self-insured employer, including a private group self-insurer, the chair shall levy an  assessment  against  all  private self-insured   employers,  including  private  group  self-insurers,  in accordance with paragraphs c and e of this subdivision to assure  prompt payment  of  such  compensation  and benefits. Whenever compensation and benefits are unpaid by reason of such default, the chair shall  promptly pay  such  compensation  and  benefits  from  administration expenses as provided in section one hundred fifty-one of this chapter upon audit and warrant of the comptroller upon vouchers approved by the chair.  Nothing in this paragraph shall preclude the chair from recovering the moneys it expends   from   its   administrative  expenses  against  the  defaulted individual  self-insurer,  or  the  members  of  the   defaulted   group self-insurer, as otherwise permitted by this chapter.   6.  Any  policy  of  insurance purchased pursuant to the provisions of this subdivision six as in effect prior  to  the  first  day  of  March, nineteen hundred fifty-seven, shall be cancelled prior to, or as of, the twenty-eighth day of February, nineteen hundred fifty-seven.   The  cost  of  such insurance shall be apportioned by the clerk of the board of supervisors of the county to  each  such  city,  village,  fire district,  fire  protection district, fire alarm district, and territory outside such municipal corporations and  districts,  in  the  proportion that  the agreed population bears to the entire population of the group. Refunds, dividends and discounts in relation to such insurance shall  be distributed  or  credited  according  to  the  same  apportionment. Upon notification by the clerk of the board of supervisors, the chief  fiscal officer  of  each  such  city, village or fire district shall pay to the  county treasurer, from moneys available or made  available,  the  amount apportioned  to  such city, village or district. Upon like notification, the supervisor of each town in which a fire protection district or  fire alarm  district  is  located  in  whole  or in part, or in which outside territory is located, shall pay  to  the  county  treasurer  the  amount apportioned for such district, in whole or in part, or territory, as the case  may  be, using moneys raised or made available for the purposes of fire protection in such district or outside territory, or if there be no such moneys or insufficient moneys, using funds of the town available or made available, which funds shall be a  charge  upon  such  district  or territory  for  which the town shall be reimbursed. The county treasurer shall pay the cost of  such  insurance  with  such  moneys,  or  if  any apportioned  share has not been paid, the county treasurer shall advance the amount necessary from moneys of the general fund upon resolution  of the  board  of  supervisors. Any such advance shall be repaid as soon as moneys are available therefor. If any apportioned share remains  unpaid, the  county  may recover the same by action at law. If any member of the group shall fail to pay its apportioned share within thirty  days  after notice  that such amount has become due and payable, the chairman of the board of supervisors may terminate the participation of such  member  in the  group  by  notice by mail to such member on a date specified in the notice, and a copy of such notice shall be filed by the chairman of  the board  of  supervisors  with the insurance carrier, who shall notify the chairman of the workmen's  compensation  board  of  the  termination  of coverage in the same manner as provided for cancellation of policy under subdivision five of section fifty-four of this chapter.   If  any  participating fire protection district or fire alarm district includes territory in more than one town, whether or not  in  more  than one  county,  the  amount  of  cost  of  insurance,  refund, dividend or discount apportioned to  such  district  shall  be  apportioned  in  the proportion  that  the  population  of the district within each such town bears to the population of the entire  district.  The  figure  used  for population in such case shall be the one stated in the agreement.   7.  Any  policy  of  insurance purchased pursuant to the provisions of this subdivision seven as in effect prior to the  first  day  of  March, nineteen hundred fifty-seven, shall be cancelled prior to, or as of, the close   of   the   twenty-eighth   day  of  February,  nineteen  hundred fifty-seven. The cost of such insurance shall be a town charge and shall be levied and collected in the same manner as other town charges only in the territory of such town outside of any villages  and  fire  districts not covered by such a policy.   8.  The  requirements  of  section  ten  of this chapter regarding the provision of workers' compensation insurance as to owners  and  trainers governed  by  the  racing, pari-mutuel wagering and breeding law who are employers under section two of this chapter are  satisfied  in  full  by compliance  with  the  requirements  imposed upon owners and trainers by section two hundred twenty-one of the racing, pari-mutuel  wagering  and breeding  law,  provided  that  in  the event double compensation, death benefits, or awards are payable with  respect  to  an  injured  employee under  section fourteen-a of this chapter, the owner or trainer for whom the injured jockey, apprentice jockey or exercise person licensed  under article  two  or  four  of the racing, pari-mutuel wagering and breeding law, and at the election of the  New  York  Jockey  Injury  Compensation Fund,  Inc.,  with the approval of the New York state gaming commission, employee of a licensed trainer or owner, is  performing  services  as  a jockey,  apprentice jockey or exercise person so licensed at the time of the accident or, if approved by the New York state gaming commission, an employee  of  a  licensed  trainer  or  owner  shall   bear   the   sole  responsibility   for   the  amount  payable  pursuant  to  such  section fourteen-a in excess of the amount otherwise payable under this chapter, unless there shall be a failure of the responsible owner or  trainer  to pay such award within the time provided under this chapter. In the event of  such failure to pay and the board requires the fund to pay the award on behalf of such owner or trainer who has been found to  have  violated section  fourteen-a  of  this  chapter, the fund shall be entitled to an award against such owner or trainer for the amount so paid  which  shall be  collected  in  the same manner as an award of compensation. Coverage directly procured by any owner or trainer for the purpose of  satisfying the  requirements of this chapter with respect to employees of the owner or trainer shall not include coverage on any jockey,  apprentice  jockey or  exercise  person  licensed  under article two or four of the racing, pari-mutuel wagering and breeding law, and at the election  of  the  New York Jockey Injury Compensation Fund, Inc., with the approval of the New York  state  gaming  commission,  any  employee of a licensed trainer or owner, to the extent  that  such  jockey,  apprentice  jockey,  exercise person or, if approved by the New York state gaming commission, employee of  a  licensed trainer or owner is also covered under coverage procured by The New York Jockey Injury Compensation Fund, Inc.  pursuant  to  the requirements   of   section   two  hundred  twenty-one  of  the  racing, pari-mutuel wagering and breeding law,  and  to  that  extent,  coverage procured  by  the  fund  pursuant  to  the  requirements  of the racing, pari-mutuel wagering and breeding law shall be considered primary.   9. The requirements  of  sections  ten  and  eleven  of  this  chapter regarding  the  securing and provision of workers' compensation benefits as to a central dispatch facility, as defined in article  six-F  of  the executive law, are satisfied in full by compliance with the requirements imposed  upon  such central dispatch facility by such article. Insurance coverage directly procured by any  central  dispatch  facility  for  the purpose  of  satisfying the requirements of this chapter with respect to employees of the central dispatch facility shall not include coverage of any black car operator to the extent that the black car operator is also covered under coverage secured by the  New  York  black  car  operators' injury  compensation  fund, inc. pursuant to the requirements of article six-F of the executive law, and to that extent, coverage secured by  the fund  pursuant to the requirements of article six-F of the executive law shall be considered primary.   10. An individual self-insured  employer  or  group  self-insurer  who fails  to  file  or  maintain the security deposit required by the chair will be deemed to have failed to secure compensation for the amount  not deposited,  and  shall  be  liable  for  all  penalties for such failure provided for under this title.   11. If at any time an individual self-insured employer or member of  a group  self-insurer intentionally and materially understates or conceals payroll, or  intentionally  and  materially  misrepresents  or  conceals employee duties or if the employer intentionally or materially misstates payroll  or  claims information for the purposes of determining employer contributions as provided for under subdivisions three  and  three-a  of this  section,  such  employer  shall be deemed to have failed to secure compensation and shall be subject to sanctions applicable under  section fifty-two  of  this article in addition to any other sanctions available under law.   12. The chair, with the approval of the director of  the  budget,  may request the issuance of bonds by the dormitory authority for one or more of  the  purposes  authorized by section sixteen hundred eighty-q of the public authorities law and by a self-insured  bond  financing  agreement authorized  by section fifty-c of this article. The net proceeds of such  bonds shall be  deposited  into  the  self-insurer  offset  fund  or  as otherwise   provided  by  the  applicable  self-insured  bond  financing agreement.