2023 New York Laws › WKC - Workers' Compensation › Article 6-A - Workers' Compensation Security Fund › 108 - Payments Into Fund; Returns; Recoupment.

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