Recently, PIANY received an update from the New York State Insurance Fund, which details modifications to the Safety Group Enhanced Discount and Preferred Risk Business Discount; the addition of a new endorsement for employees telecommuting from a location outside of New York; updates on NYSIF’s loss cost multiplier; an extension of the relief for interest on premium audit balances; and the appointment of NYSIF’s new director of underwriting.
Safety Group Enhanced Discount
Eligible safety groups can choose to provide an additional 10% enhanced discount to their members. Eligible safety groups also can provide an additional 30% advance discount to their policyholders. The requirements to be eligible to provide these discounts are the same as the previous 5% enhanced discount. These changes go into effect Monday, Nov. 1, 2021, and stay in effect for one year.
Preferred Risk New Business Discount
The Preferred Risk New Business Discount Program now will offer up to a 35% up-front discount for qualified safety group new business, regardless of the group’s advance discount. Additionally, NYSIF is expanding this group to allow qualified policyholders to enjoy the higher discount under the Preferred Risk New Business Discount Program for the declaration period and the renewal period. The requirements to be eligible for a higher discount with this program remains the same. These changes go into effect immediately.
Endorsement for telecommuting employees
NYSIF has created a new, informational endorsement for commercial clients who have employees who telecommute from a location outside of New York. According to the endorsement, “The [NYSIF] policy covers all your regular New York employees, including those who are currently working from their home in a foreign state [in accordance with] the policyholder’s telecommuting program. We will cover claims by such employees filing in New York under the New York Workers’ Compensation Law.”
NYSIF’s loss cost multiplier of 1.27 will remain the same for new and renewal policies that go into effect Friday, Oct. 1, 2021.
Interest relief for premium audit balances
NYSIF suspended interest on premium audit balances as a result of the COVID-19 pandemic. This relief has been extended through September 2021. However, NYSIF will resume applying interest to audit balances on Friday, Oct. 1, 2021.
NYSIF’s new director of underwriting
NYSIF has appointed Thomas Racko as its director of underwriting. Racko has more than 25 years of experience in workers’ compensation. Racko joined NYSIF in 1994 as a premium auditor and later joined the underwriting department, serving as a policyholder service manager and a business manager. Additionally, he was instrumental in assisting policyholders with COVID-19 deferred premiums, and training staff on the appropriate use of Class Code 8873–Telecommuter Reassigned Employees.
Racko is replacing Steve Bell, who has retired.