2023 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.