NEW YORK MANUAL FOR WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE - PART ONE - RULE I:
B. STANDARD POLICY
Standard Policy means the standard provisions of the “Workers’ Compensation and Employers’ Liability Insurance Policy” (WC 00 00 00 C) and the “Information Page” (WC 00 00 01 A) approved by the New York State Department of Financial Services. Every policy affording coverage under the New York State Workers’ Compensation Law must include the following endorsements and premium elements.
Number Version Name Effective WC 00 04 14 A 90-Day Reporting Requirement – Notification of Change in Ownership Endorsement 01/01/19 WC 00 04 19 Premium Due Date Endorsement 01/01/01 WC 00 04 21 E Catastrophe (Other Than Certified Acts of Terrorism) Premium Endorsement 01/01/21 WC 00 04 22 C Terrorism Risk Insurance Program Reauthorization Act Disclosure Endorsement 01/01/21 WC 31 03 08* New York Limit of Liability Endorsement 04/04/84 WC 31 03 19* L New York Construction Classification Premium Adjustment Program Explanatory Endorsement 01/31/22 WC 31 06 18 A New York Workers’ Compensation Policyholder Notice of Right to Appeal 03/01/15
*These endorsements are not mandatory for the Volunteer Firefighters’ Benefit Law Policy and the Volunteer Ambulance Workers’ Benefit Law Policy.
Exception: Policies covering employees subject to the New York Volunteer Firefighters’ Benefit Law or the New York Volunteer Ambulance Workers’ Benefit Law must be written only by means of a “Volunteer Firefighters’ Benefit Law Policy” (WC 31 00 00 B) or a “Volunteer Ambulance Workers’ Benefit Law Policy” (WC 31 00 02 B), respectively.
MANDATORY PREMIUM ELEMENTS
Description Effective 9740 Terrorism Premium Charge 02/24/06 9741 Natural Disaster & Catastrophic Industrial Accidents Premium Charge 10/01/05 9749 New York Workers’ Compensation Security Fund Surcharge 10/01/05
NEW YORK MANUAL FOR WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE - PART ONE - RULE VIII:
The New York Construction Classification Premium Adjustment Program provides a premium credit, for up to one year, for a policy which is experience rated, satisfies the hourly wage requirement, and contains one or more construction classifications.
An employer must submit a separate application for each of their policies that contains an eligible construction classification. An application including all the employer’s policies (e.g. Owner Controlled Insurance Program (OCIP’s), Contractors Controlled Insurance Program (CCIP’s), Wrap-Ups) will not be accepted as any credits will be calculated on a per policy basis only. A combination of policies and applications is not permitted. Any policies of an employer that do not contain an eligible code will not be eligible for a credit.
Construction classifications are those classifications subject to the following codes:
The application for credit on a renewal policy must be received by the Rating Board three (3) months prior to the policy renewal effective date. The Rating Board will accept and process an application if it is received between the renewal policy effective and expiration date, however, it must be accompanied with an explanation from the employer stating the reason for the delay.
Under no circumstances will an original application be accepted for any policy if it is received after the expiration date of the policy to which the credit would have applied, nor will a revised application be accepted if it is received later than one (1) year from the expiration date of the policy to which the credit would have applied.
- Payroll and Credit Determination
- Payroll Determination
The basis for determining the credit is the limited payroll of each employee for the number of hours worked (excluding overtime premium pay) for each construction classification (other than employees engaged in the construction of one or two-family residential housing). For policies with effective dates between January 1 and March 31, the payroll submitted is for the third quarter, as reported to taxing authorities, for the second calendar year preceding the policy effective date. For policies with effective dates between April 1 and December 31, the payroll submitted is for the third quarter, as reported to taxing authorities, for the calendar year preceding the policy effective date. Total payroll (and not limited payroll) is to be reported for employees engaged in the construction of one or two-family residential housing.
If the employer did not engage in operations for the complete quarter, then the last complete quarter prior to policy year inception is used or, if there was no complete quarter of operations prior to the policy inception, then the first complete quarter after policy inception is used.
Note: Limited payroll is used in the determination of the Credit. Limited Payroll for commercial work means the weekly maximum (refer to Rule V of this Manual) for work on structures other than one or two-family residential housing in accordance with the Payroll Limitation Law. If commercial work is performed under any eligible code(s), each employee’s weekly payroll and total hours worked is used. If an employee’s weekly payroll exceeds the maximum, the weekly maximum amount is used.
Refer to the “Miscellaneous Values” pages in Part Three - Loss Costs of this Manual for the current weekly maximum amounts.
- Credit Determination
- A credit may be determined for each construction classification by dividing the total payroll (excluding overtime premium pay) by the number of hours worked to arrive at the average hourly wage for the classification.
- In the absence of specific records for salaried employees, it will be assumed each such individual worked forty (40) hours per week.
- The factors for each hourly wage range shown below are used in the calculation of the employer’s final credit:
Average Hourly Wage Factor Average Hourly Wage Factor Under $23.25 .00 $38.25 - $39.74 .21 $23.25 - $24.74 .05 $39.75 - $41.24 .22 $24.75 - $26.24 .06 $41.25 - $42.74 .23 $26.25 - $27.74 .07 $42.75 - $44.24 .24 $27.75 - $29.24 .08 $44.25 - $45.74 .25 $29.25 - $29.99 .09 $45.75 - $47.24 .26 $30.00 - $30.74 .10 $47.25 - $48.74 .27 $30.75 - $31.49 .11 $48.75 - $50.24 .28 $31.50 - $32.24 .12 $50.25 - $51.74 .29 $32.25 - $32.99 .13 $51.75 - $53.24 .30 $33.00 - $33.74 .14 $53.25 - $54.74 .31 $33.75 - $34.49 .15 $54.75 - $56.24 .32 $34.50 - $35.24 .16 $56.25 - $57.74 .33 $35.25 - $35.99 .17 $57.75 - $59.24 .34 $36.00 - $36.74 .18 $59.25 and over .35 $36.75 - $37.49 .19 $37.50 - $38.24 .20
- The total construction classification credit amount, in dollars, must be calculated and then divided by the total policy premium including construction and non-construction classification(s). The result will be the average credit percentage which is then used to calculate the final credit to be applied to the policy.
When calculating the final policy credit, the percentage is rounded to the nearest whole number with .5 being rounded upward (as an example, 5.4 rounded to 5% and 5.5 rounded to 6%).
- Payroll Determination
- Experience Modification
The policy to which the credit would apply must be experience rated to be eligible for this program and the experience modification must be available before the credit can be calculated.
- The carrier shall, upon audit, verify the information that was submitted by the employer and used in the calculation of the credit. If the carrier discovers an error in the original request for policy credit, the revised information must be submitted to the Rating Board for recalculation.
- If the employer does not furnish records to verify the payrolls and hours worked originally submitted and used in the calculation of the credit, no credit shall be applied to the policy.
- Information Page
The credit authorized by the Rating Board must be reported on Item 4. of the Information Page using Statistical Code 9046 “Premium Adjustment Credit Factor.”
- Form of Endorsement
The “New York Construction Classification Premium Adjustment Program Explanatory Endorsement” (WC 31 03 19 L) must be attached to each policy.
- Notification to Employer
Carriers that elect to notify their employers that have one or more construction classifications on their policy that may be eligible for a premium adjustment credit, are required to use a standardized letter. A copy of such standardized letter must be submitted to the Audit Division of the Rating Board for approval prior to its use.
I. CONSTRUCTION CLASSIFICATION PREMIUM ADJUSTMENT PROGRAM
NEW YORK EXPERIENCE RATING PLAN MANUAL LATEST - RULE 1 -
A. EXPERIENCE RATING
Experience rating recognizes the differences among individual employers by comparing the experience of individual employers with the average employer in the same classification. The differences are reflected by an experience rating modification (“modification”) based on individual employer payroll and loss records, which may result in an increase, decrease, or no change in premium.Jump To Revision Eff. Date 2022-01-01