As I write this, I have just gotten off the phone with an attorney representing an employer who belonged to an under-funded group self-insured trust. Fortunately, he was just looking for information, not threatening to bill or sue me. His client, however, is staring at an assessment bill for a rather large amount of money. That's one story out of far too many that arose this year with the surprising decline in the group self-insured trust industry. The state legislature enacted reform legislation last June to prevent repeats of stories like this one, and that law is the focus of episode 10 of Ask Tim.
- The law is Chapter 139 of the Laws of 2008, formerly known as Senate Bill S.8708
- It clarifies that the New York Workers' Compensation Board has authority to assess group self-insured trusts
- It requires the board to assess employers in an insolvent trust within 120 days of the trust's insolvency
- It contains several anti-fraud protections
- It requires trusts toreport on their financial conditions to the board at least annually
- It requires trusts to be fully funded
- It authorizes the board to borrow up to $52 million to meet short-term claim obligations
- It places new limits on the ability of employers to join a trust or move from one to another
- It creates an advisory committee and a task force to make recommendations for system improvements
Our sponsor this episode is AgentQuote.com.