Question from an IIABNY member: With regard to Workers Compensation:
1) What is the requirement for carriers for issuing either non-renewal or conditional renewal notices? Are they required to give 60 days notice as with other lines of business or is it less?
2) We have a carrier that is issuing a ‘cancellation’ notice, with only 30 days notice, in order to change the writing company on the renewal policy. Should they be issuing a conditional renewal notice instead?
Answer: New York Insurance Law Section 3426, which provides the requirements for cancellation, nonrenewal and conditional renewal notices for most commercial lines policies, specifically states that it does not apply to Workers' Compensation policies. Rather, New York Workers Compensation Law Section 54 applies; it requires a carrier to provide no less than 30 days' advance notice of non-renewal. It does not require carriers to provide conditional renewal notices.
Regarding cancellation, that same section of the law requires the carrier to give 10 days' notice for non-payment of premium or 30 days' notice for any other reason.