NY Ins L § 2304 (2021)
2021 New York Laws ISC - Insurance Article 23 - Property/casualty Insurance Rates 2304 - Rate Making and Supporting Information.

§  2304.  Rate making and supporting information. (a) In the making of rates, consideration  shall  be  given  to  past  and  prospective  loss experience, including the conflagration and catastrophe hazards, if any, both   within   and  without  this  state,  to  all  factors  reasonably attributable to the class of risks, to a reasonable profit, to past  and prospective expenses both country-wide and those specially applicable to this  state, and in the case of participating insurers to policyholders' dividends, savings or unabsorbed premium deposits allowed or returned to policyholders, members or subscribers.  (b) The information furnished in support of a filing may include:  (1) the  experience  or  judgment  of  the  insurer  or  rate  service organization making the rate;  (2) its interpretation of any statistical data it relies upon;  (3) the experience of other insurers or rate service organizations; or  (4) any other relevant factors.  (c)  Risks  may be grouped by classifications for the establishment of rates and minimum premiums. Classification  rates  may  be  modified  to produce rates for individual risks in accordance with rating plans which establish  standards  for  measuring  variations  in  hazards or expense provisions, or both. Such standards may measure  any  differences  among risks  that can be demonstrated to have a probable effect upon losses or expenses.  (d) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to  reflect  the  requirements  of  the  operating methods  of  any such insurer or group with respect to one or more kinds of insurance, or subdivisions of  kinds  of  insurance,  or  classes  of risks,  or  any part or combination of the foregoing, for which separate expense provisions are applicable.  (e)(1) Premiums for workers' compensation  insurance  for  employments classified  under sections two hundred twenty, two hundred forty and two hundred forty-one of  the  labor  law,  provided  such  employments  are classified  under  each  of  said  sections, shall be established on the basis of payroll and  a  formula  which  provides  appropriate  credits, provided  such  credits  shall  not  apply  to  payroll in excess of the payroll limitation amount  set  forth  in  subdivision  two  of  section eighty-nine  of  the workers' compensation law and this subsection. With the exception of employments engaged in the construction of one  or  two family  residential  housing, premiums shall be calculated in accordance with the following limitations:  (A)  For  policies  with  rating  anniversary  dates  after  September thirtieth,  nineteen  hundred  ninety-nine and before October first, two thousand, an employer's payroll for premium computation purposes in  the affected construction classifications shall be the actual weekly payroll per  employee  for  the number of weeks employed subject to a maximum of nine hundred  dollars  per  week  per  employee  plus  one-half  of  the difference between the employer's total payroll and the limited payroll.  (B)  For  policies  with  rating  anniversary  dates  after  September thirtieth, two thousand and before October first, two thousand  one,  an employer's  payroll  for  premium  computation  purposes in the affected construction classifications shall be  the  actual  weekly  payroll  per employee  for  the number of weeks employed subject to a maximum of nine hundred dollars per week per employee.  (C)  For  policies  with  rating  anniversary  dates  after  September thirtieth,  two thousand one and before October first, two thousand two, an employer's payroll for premium computation purposes in  the  affected construction  classifications  shall  be  the  actual weekly payroll per  employee for the number of weeks employed subject to a maximum of  eight hundred dollars per week per employee.  (D)  For  policies  with  rating  anniversary  dates  after  September thirtieth,  two  thousand  two,  an  employer's  payroll   for   premium computation  purposes in the affected construction classifications shall be the actual weekly payroll  per  employee  for  the  number  of  weeks employed  subject  to  a  maximum  of the greater of seven hundred fifty dollars per week or the weekly payroll amount  upon  which  the  maximum weekly benefit is based, per employee.  (2) The loss costs applicable to employments classified under sections two  hundred  twenty, two hundred forty and two hundred forty-one of the labor law, provided such employments are classified under each  of  said sections,  shall be adjusted to reflect the payroll limitations required by this section as they separately affect such rates for  work  actually performed within each of the following geographic territories:  (A) Territory 1 comprising the counties of the Bronx, Kings, New York, Queens, and Richmond;  (B)  Territory  2 comprising the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester; and  (C) Territory 3 comprising all other counties within the state.  (f) The rate adjustments required by subsection (e)  of  this  section shall  be  filed  by the New York compensation insurance rating board in accordance with the provisions of section  two  thousand  three  hundred forty-seven  of  this  article,  and  shall  not  become effective until approved by the superintendent.  (g) "Loss costs," for the purpose of workers'  compensation  insurance in  this article, means that portion of a rate intended to represent the anticipated  costs  of  claim  payments  and  loss  adjustment  expenses associated  with  such claim payments, and may include one or more trend factors. Loss costs do not include provisions for expenses  (other  than loss adjustment expenses) such as acquisition costs, overhead and taxes, or  profit.  For  all  other  purposes,  the  superintendent,  except as otherwise provided in this chapter, may promulgate regulations  defining loss costs.  (h)  A loss cost filing shall be deemed to be a rate filing under this article.  (i) Nothing in this section shall prohibit the application of  payroll limitation  provisions at the discretion of the superintendent, provided such programs were in  effect  prior  to  the  effective  date  of  this subsection.  (j)(1)  On  or before July first, two thousand sixteen, the department shall make rules establishing requirements for health care facilities to obtain a reduced worker's compensation rate for  safe  patient  handling programs implemented pursuant to title one-A of article twenty-nine-A of the public health law.  (2)  The department shall complete an evaluation of the results of the reduced rate, including changes in claim frequency and costs, and  shall report  to  the  appropriate  committees of the legislature on or before December first, two thousand eighteen and again on  or  before  December first, two thousand twenty.