(Dewitt, New York, Dec. 19, 2017) - Big I New York is celebrating today the enactment of a law it wrote to protect the state’s businesses. Gov. Andrew M. Cuomo signed
Assembly Bill No. 1620 into law yesterday. The measure requires insurance companies to notify employers in advance of some Workers’ Compensation insurance premium increases. Big I New York is the Empire State’s oldest insurance producer trade association.
“For three decades, New York businesses have been entitled to advance notice of large premium increases for many types of insurance,” said Big I New York Chair of the Board Richard E. MacDonald, CPCU, ARM, AIM, “but not Workers’ Compensation. Workers’ Compensation is often one of the most expensive coverages businesses purchase. The new law Big I New York wrote will give businesses fair warning of premium increases within the insurance company’s control. They will have time to respond that they did not have before.”
A 1986 law requires insurers to notify businesses in advance when premiums increase more than ten percent. However, it exempts Workers’ Compensation insurance from its requirements. Businesses often learn of large Workers’ Comp premium increases days before their policies are to renew. This leaves them little time to work with their agents to seek less expensive options.
Big I New York developed Assembly Bill 1620 which requires insurers to give businesses written notice when their Workers’ Comp policy premiums will rise by more than ten percent upon renewal by an affiliated insurer. They must send the notice at least 30 days before the existing policies expire. The requirement applies only to premium components within the insurer’s control. Insurers will not have to send a notice when the increase results from changes in factors that are related to the risk, such as an increase in the business’s payroll or surcharges or discounts based on the business’s loss history.
“I want to thank the bill sponsors, Senator Joseph Robach and Assemblyman Andrew Hevesi for introducing this vital piece of legislation, as weel as Gov. Cuomo for signing it into law,” MacDonald said. “This law will allow agents to help their business customers better manage their Workers’ Compensation costs while still permitting insurance companies to obtain premium increases when necessary.”
In his signing message, the governor called on the State Legislature to make some technical amendments to the new law in the upcoming session.
“We intend to work closely with lawmakers on a bill to make the governor’s requested changes,” MacDonald added.
Big I New York exists to fulfill the educational, political, and business interests of our more than 1,750 agencies and their 13,000 plus employees.
Our members are independent insurance agents and brokers, which means they can provide consumers with a choice of products from more than one insurance company and in turn give consumers unrivaled service, and the best auto, homeowner, and business coverage to meet their changing needs. In addition, most Big I New York 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.