Skip to Content

Workers’ Compensation Board

New York State
Workers' Compensation Board
328 State Street  Schenectady, New York 12305
Subject No. 046-92

To:  All Insurance Carriers and All Self-Insurers Assessed Pursuant to WCL, Sec. 15(8)(h) - Special Disability Fund

Annual Special Disability Fund Assessments on or after January 1, 2000

Date:  February 28, 2000


Effective January 1, 2000, the method used to determine the annual assessments to fund the Special Disability Fund [Workers' Compensation Law, Section 15(8)] has changed due to the enactment of Chapter 188 of the Laws of 1999, which amended Section 15(8)(h). This Subject No. 046-92 defines the words and phrases used to determine the amounts assessed for the insurance carriers, except the State Insurance Fund ("SIF"). There will be no impact to SIF or self-insurers based on this change.

Special Disability Fund Assessments

The proportion of the total Special Disability Fund assessment assessed and levied on all insurance carriers as a group remains unchanged; however, the proportion of the assessment paid by individual insurance carriers changes.

Under the new formula, first the total assessment is apportioned between (i) SIF and all self-insurers, and (ii) all insurance carriers, based on compensation payments made. Once this is done, the proportion of the total assessment initially apportioned to all insurance carriers combined is then further apportioned among the individual insurance carriers on a pro rata basis using the direct premiums written by each insurance carrier as the base. The individual proportion for SIF and self-insurers will not be affected. In accordance with Board Rule 13 [12 NYCRR 300.13] the Board Panel may deny review of applications, or may refuse to consider rebuttals to applications for review, which are not accompanied by the appropriate prescribed cover sheet.


For the purposes of Section 15(8)(h) and the apportionment and assessment formula therein, whenever the term "written premiums" appears, "written premiums" shall have the same meaning as in Line 16, Column 1 in the "Exhibit of Premiums and Losses, Business in the State of New York During Year" which is filed with the New York State Insurance Department as part of the "SUPPLEMENT TO PROPERTY AND CASUALTY ANNUAL STATEMENT adobe pdf ." Therefore, "written premiums" represents Direct Premiums Written for workers' compensation under the subtitle Gross Premiums, Including Policy and Membership Fees, Less Returned Premiums and Premiums on Policies not Taken in Line 16, Column 1 of the Exhibit of Premiums and Losses referred to above.

A copy of the Exhibit of Premiums and Losses appearing at page 14 of the "SUPPLEMENT TO PROPERTY AND CASUALTY ANNUAL STATEMENT for December 31, 1999," is attached. A copy of the complete SUPPLEMENT TO PROPERTY AND CASUALTY ANNUAL STATEMENT, is available at the State Insurance Department's Link to External Website Web site.

Amounts entered in Line 16, Column 1 of the Insurance Department's Exhibit of Premiums and Losses represent totals for the calendar year 1999. However, "Direct Premiums Written" amounts for the purpose of the Section 15(8)(h) assessment represent total amounts for "the (State) fiscal year which ended within said preceding calendar year (1999)." The State fiscal year which ended in calendar year 1999 was April 1, 1998 through March 31, 1999. Thus, the total amounts which are entered on Line 16, Column 1 in the Exhibit of Premium and Losses for calendar year 1999 will not agree with the amounts required to be reported to the Workers' Compensation Board for State Fiscal Year 1998-1999 (April 1, 1998 through March 31, 1999).

Therefore, in addition to the reported indemnity and medical information currently provided to the Workers' Compensation Board by insurance carriers and self-insurers, all carriers except SIF will now need to provide "written premiums" (as defined herein) for the same time period. The first report will include the following quarters:

April 1, 1998 through June 30, 1998;
July 1, 1998 through September 30, 1998;
October 1, 1998 through December 31, 1998; and
January 1, 1999 through March 31, 1999.

In addition, for the purpose of Section 15(8)(h) and the apportionment and assessment formula therein, whenever the term "compensation payments" appears, "compensation payments" shall mean indemnity payments.

Assessment Collection Schedule Remains Unchanged

The collection process schedule is not changed in Section 15(8)(h) as amended; amounts assessed are due and payable within 30 days after the assessment notices are sent to insurance carriers and self-insurers. Such amounts assessed are collectable by insurance carriers once paid to the Board through a surcharge based on premiums billed to policyholders in accordance with rules promulgated by the New York Compensation Insurance Rating Board, and approved by the Superintendent of Insurance.

If you have any questions, please contact the Board's Policy and Finance Director, Kathleen Griffin at (518) 486-3354.


Glenn Warren
Deputy Executive Director