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IIABNY Lauds Senate Committee Action on Workers' Comp Bill

Group wrote bill to protect New York State employers

(Dewitt, New York, May 24, 2016) - The Independent Insurance Agents & Brokers of New York (IIABNY) today applauded a State Senate committee's action to protect employers from surprise insurance premium increases. The Senate Labor Committee approved IIABNY's bill during its meeting this afternoon at the State Capitol in Albany.

"Workers' Compensation insurance is a major expense for New York employers," said IIABNY Chair of the Board John H. Smith, Jr., CPCU, ARM, CIC. "For decades, insurers have had to notify businesses in advance of large premium increases for other types of insurance. Not so for Workers' Compensation. This important bill will put Workers' Compensation under the same rules."

Senate Bill 4399A, sponsored by Sen. Joseph E. Robach (R-56^th District), would require insurers to give employers advance notice when their renewal policy premiums will increase by more than 10 percent over the previous policies' premium. The requirement would apply when the premium increase is within the insurer's control. It would not apply to factors required by state rules beyond the insurer's control, such as a change in the state-approved loss costs (rates minus overhead costs and profit), discounts and surcharges driven by the employer's past loss experience, and growth in the employer's payroll. Workers' Compensation premiums are based on the amount of payroll.

New York State Insurance Law has required insurers to provide advance notice of premium increases for other types of business insurance since 1986. However, that law does not apply to Workers' Compensation insurance. Employers often receive the bills for their renewal premiums shortly before payment is due. This leaves them little time to look for other coverage at a lower cost. To address this unfair situation, IIABNY developed the language for Sen. Robach's legislation.

"We commend the Senate Labor Committee for approving this measure to protect New York employers," Smith said. "We now encourage the full Senate to pass it."

The Independent Insurance Agents & Brokers of New York, Inc. has represented the common business interests of independent insurance professionals since 1882. More than 1,750 agencies and their 13,000 plus employees currently rely on the DeWitt, New York-based not-for-profit trade association for legislative advocacy, continuing education and other means of industry support. In addition, most IIABNY members proudly identify themselves as Trusted Choice® agents and brokers, a national consumer brand uniting more than 21,000 independent agencies across the United States.

For more information, go to www.trustedchoice.com or www.iiabny.org.