New York Codes, Rules and Regulations › Title 12 - DEPARTMENT OF LABOR › Chapter V - Workers' Compensation › Subchapter H - Disability Benefits › Article 1 - Regulations Under Disability Benefits Law › Part 361 - Self-insurance Regulations › Section 361.3 - Required deposit or surety

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
					 security deposit posted by a self-insurer shall be a combined deposit to cover
					 disability benefits and paid family leave, if applicable, obligations, and
					 liabilities under section 204  of the Workers' Compensation Law.
(b) An applicant which has been approved to
					 become a self-insurer shall either:
(1)
					 deposit with the chair, and keep on deposit, securities of the kind specified
					 in subdivisions 1, 2, 3, 4, and 5 and paragraph (a) of subdivision 7 of section
					 235 of the New York State Banking Law, in an amount required by the chair.
					 Securities deposited shall be registered in the name of "Chair, Workers'
					 Compensation Board, State of New York." Interest paid on securities deposited
					 with the chair shall be remitted to the self-insurer for whose account they are
					 deposited, as long as the self-insurer complies with article 9 of the Workers'
					 Compensation Law and with these regulations and rules; or
(2) deposit with the chair and keep on
					 deposit cash in an amount required by the chair. Cash deposits shall 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, automated clearing house (ACH), or wire transfer. Interest
					 paid on the cash deposit shall be remitted to the self-insurer for whose
					 account the cash is deposited, so long as such self-insurer complies with
					 article 9 of the Workers' Compensation Law and with these regulations and
					 rules; or
(3) file irrevocable
					 letters of credit issued by a qualified bank; or
(4) in lieu of securities, cash or letters of
					 credit and at the discretion of the chair, file with the chair the bond of a
					 surety company authorized to do business in this State, in form and penal sum
					 acceptable to the chair and conditioned on the payment by the self-insurer of
					 all its obligations and the obligations of each and every employer for whose
					 employees the self-insurer provides benefits under article 9 of the Workers'
					 Compensation Law. Each surety bond shall be undertaken and may be enforced in
					 the name of "Chair, Workers' Compensation Board, State of New York";
(i) to be a qualified surety company, the
					 surety company must have a credit rating of B+ or better from A.M. Best or the
					 equivalent from any other rating service;
(ii) if the rating of the surety bond issuer
					 falls below the criteria established in section 361.3(b)(4)(i)  of this Part,
					 the self-insurer will have to replace the surety bond within 60 days of the
					 rating determination by the chair with another deposit allowable under the law;
					 or
(5) deposit or file
					 with the chair a combination of such securities, cash, irrevocable letters of
					 credit and surety bonds.