New York Codes, Rules and Regulations › Title 12 - DEPARTMENT OF LABOR › Chapter V - Workers' Compensation › Subchapter B - Self-insurers › Part 315 - Regulations › Section 315.3 - Securities, cash, surety bond and/or letters of credit

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The applicant shall deposit with the
				  chairman securities of the kind specified in subdivisions 1, 2, 3, 4, 5, and
				  paragraph (a) of subdivision 7 of section 235 of the New York State Banking
				  Law. Such securities shall be registered in the name of "Chairman, Workers'
				  Compensation Board, State of New York." Interest paid on securities on deposit
				  will be regularly remitted to the self-insurer for whose account they are
				  deposited, so long as such self-insurer complies with this Subchapter and the
				  provisions of the Workers' Compensation Law, and is not in default in the
				  payment of compensation or other obligation under the Workers' Compensation
				  Law.
(b) A cash deposit may be
				  deposited in lieu of securities, surety bond or letters of credit. Such cash
				  deposit will be deposited in an interest-bearing account in the name of "Chair,
				  Workers' Compensation Board, State of New York" and shall be in an account
				  authorized by the Comptroller of the State of New York. Such cash deposit is to
				  be by certified check. Interest paid on the cash deposit will be regularly
				  remitted to the self-insurer for whose account it is deposited so long as such
				  self-insurer complies with the provisions of the Workers' Compensation Law and
				  is not in default in the payment of compensation or other obligation under the
				  Workers' Compensation Law.
(c)
				  Surety bonds accepted in lieu of securities, cash, or letters of credit shall
				  be undertaken and enforced in the name of the "Chair, Workers' Compensation
				  Board, State of New York" and shall be in form approved by the chair and issued
				  by a company authorized by the Superintendent of Insurance to write business as
				  a surety in the State of New York.
(d) To be acceptable, a letter of credit must
				  comply with all requirements set forth in Regulation 133 of the New York State
				  Insurance Department, codified as Part 79 of Title 11 of the Official
				  Compilation of Codes, Rules and Regulations of the State of New York, except
				  that:
(1) the beneficiary shall be the Chair,
				  Workers' Compensation Board, State of New York;
(2) the evergreen clause shall provide for at
				  least 60 days written notice to the Chair of the Workers' Compensation Board
				  prior to expiry date for nonrenewal;
(3) a bank, to be a qualified bank, may in
				  lieu of a determination by the Securities Evaluation Office of the National
				  Association of Insurance Commissioners for purposes of 11 NYCRR, section
				  79.1(e)(3), have either a long-term debt rating equal to Baa/BBB or better by
				  Moody's or Standard & Poor's or the equivalent thereto from any other
				  securities rating service, and/or a short-term debt rating of P2/A2 from Moody'
				  s or Standard & Poor's or the equivalent thereto from any other securities
				  rating service;
(4) the letter of
				  credit shall additionally provide that any legal proceedings with respect
				  thereto be subject to the jurisdiction of the courts of the State of New York;
				  and
(5) the form and content
				  thereof shall be acceptable to the chair.