WC & EL / PART ONE / RULE VIII:

1. Definition

   Executive officers of a corporation or unincorporated association are the president, vice president, secretary, treasurer, or any other officer appointed in accordance with the charter or bylaws of the corporation or unincorporated association.

2. Law and Status

   Executive officers of a corporation are mandatorily covered under the New York Workers’ Compensation Law and have the same status as employees under the policy.  Those executive officers who are specifically exempted from the law and those who may make an election not to be covered are described in Sections (A)(3) and (A)(4) of this Rule.

3. Exempt Executive Officers
   
   1. Executive officers of religious, charitable, educational, or municipal corporations, and officers of any post or chapter of organizations of veterans of any war of the United States are excluded from the policy coverage.  Such corporations and organizations may elect to provide coverage by filing a notice with the carrier, on a form prescribed by the New York State Workers’ Compensation Board, that the officers named in this form are to be voluntarily included under the policy.
   2. To include executive officers of such corporations, attach the “New York Non-Subject Executive Officers Coverage Endorsement” (WC 31 03 12).
4. Corporations with One or Two Executive Officers

   If a corporation has only one or two executive officers that:

   1. Hold all executive offices; and also
   2. Hold all of the issued and outstanding stock of the corporation, with each executive officer of a two-person corporation holding at least one share of stock in the corporation.

   The following statutory conditions apply with respect to the exclusion of such officer(s):

   1. Where Coverage is Required

      When a corporation employs one or more persons who are required to be covered under the law, the executive officers are statutorily covered.  However, the sole officer or, in the case of a corporation with two executive officers, one or both executive officers may be excluded if an election is made by the corporation, by filing a notice with the carrier on a form prescribed by the New York State Workers’ Compensation Board.

      Attach the “New York Exclusion of Executive Officer Endorsement” (WC 31 03 05 B) when the sole officer or one or both officers of a two-person corporation are to be excluded.

   2. Where Coverage is Not Required

      Officers of a corporation that does not employ any person who is required to be covered under the law is statutorily excluded from coverage. However, coverage may be elected for such executive officer(s) by obtaining a standard workers’ compensation policy.

      Attach the “New York Inclusion of Executive Officer Endorsement” (WC 31 03 06 A), when such officers are to be included.

5. Executive Officers – Not-For-Profit Organizations

   Not-for-profit unincorporated associations or not-for-profit corporations may elect to exclude unsalaried executive officers from coverage.  A written notice must be made by the organization and filed with the carrier on a form prescribed by the New York State Workers’ Compensation Board.

   Attach the “New York Executive Officers Exclusion Endorsement” (WC 31 03 04) when such officers are to be excluded.

   Note: Code 8810 “Clerical Office Employees NOC” applies to executive officers of not-for-profit unincorporated associations subject to the limitations stated in Section (A)(7) and (A)(8) shown below.  Code 8809 “Executive Officers NOC-Not Foremen, Workers or Salespersons” applies only to executive officers of corporations.

6. Premium Determination
   
   1. Corporations

      Premium for executive officers shall be based on their total payroll, subject to the following limitations:

      1. The minimum individual payroll for an executive officer, including those subject to construction classifications, is shown under “Miscellaneous Values” in Part Three –Loss Costs.
      2. The maximum individual payroll for an executive officer is shown under “Miscellaneous Values” in Part Three – Loss Costs.  Refer to Section (A)(7) of this Rule for executive officers subject to construction classifications as provided in Rule V Section (G)(1) of this Manual.
      3. The payroll limitations in (i) and (ii) above apply to the average weekly payroll of each executive officer for the number of weeks the officer was employed during the policy period.
      4. An inactive executive officer is to be included at the fixed amount of $100 payroll per   year.  Refer to Section (A)(10) of this rule for definition of “Inactive Executive Officers.”
      5. In the case of elected or appointed officers of municipal corporations or other political subdivisions of the State, covered by the policy, the minimum individual payroll and the fixed amount to be included for each officer who serves without pay will be $100 per year.  If such executive officers serve with pay, then provisions (i), (ii) and (iii) above of this Rule apply.
      6. The maximum and minimum payroll limitations in (i) and (ii) above of this Rule are applicable to executive officers regardless of the classification(s) to which the executive officers are assigned.
      7. The maximum payroll for executive officers subject to construction classifications, as provided in Rule V Section (G)(1) is based on the payroll limitations set forth in Rule V Section (G)(3) of this Manual.

         Note: Executive officer payrolls resulting from work performed with respect to one or two-family residential housing are subject to maximums as provided in Section (A)(6)(a)(ii) through (vi) of this Rule.

   2. Not-for-Profit Unincorporated Associations

      Premium for executive officers is based on the greater of either (i) or (ii) below:

      1. The actual payroll of the officer during the policy period.
      2. One-half of the minimum remuneration for executive officers as shown under “Miscellaneous Values” pages in Part Three – Loss Costs of this Manual.

         Note: Unsalaried officers are subject to Section(A)(6)(b)(ii) above.

7. Assignment of Payroll
   
   1. The payroll of executive officers whose duties are of an executive, clerical, or supervisory character, and who do not regularly and frequently perform such duties as are ordinarily undertaken by a foreman, worker, or salesperson, is to be assigned to Code 8809 “Executive Officers NOC - Not Foremen, Workers or Salespersons,” without division of payroll except as provided in Sections (A)(7)(b) and (c) of this Rule,
   2. The payroll of any executive officer who regularly and frequently performs such duties as are ordinarily undertaken by a foreman, worker, or salesperson is to be classified in the same manner as any other employee who is not an executive officer.
   3. In connection with a classification which specifically includes salespersons in its phraseology, any executive officer who regularly and frequently engages in the duties of a salesperson, as described by the standard exception classification Code 8742 “Salespersons, Collectors or Messengers-Outside,” is to be assigned to Code 8742 and not Code 8809.
   4. Any executive officer who qualifies for Code 8809 is to be assigned to that code even though the classification which describes the employer’s business includes clerical employees.
8. Flight Duties

   The payroll of an executive officer who is a pilot or member of the crew on any aircraft used in the employer’s business is to be assigned to the appropriate aviation classification.  Where Code 7421 “Aviation – Transport of Personnel in Conduct of Employer’s Business – Flying Crew” applies, the executive officer’s payroll is to be assigned as follows:

   1. For each week during which the executive officer did not perform flight duties, assign the officer’s payroll as provided in Section (A)(6) of this Rule.
   2. For each week during which the executive officer performed flight duties, assign the officer’s payroll for that week to Code 7421 “Aviation – Transport of Personnel in Conduct of Employer’s Business – Flying Crew.”  If an executive officer’s non-flying duties in that week are subject to a higher rated classification, that higher rated classification is to be assigned for that week.

      Note: Sections (A)(8)(a) and (b) above applies based on the pilot’s log book required under Federal regulations or other verifiable records.

      If Code 7421 “Aviation – Transport of Personnel in Conduct of Employer’s Business – Flying Crew” applies and verifiable records are not maintained to indicate those weeks during which flying is performed by the executive officer, assign the executive officer’s payroll to the highest rated classification that applies to any of their duties.

9. Domiciled in Other States

   An executive officer of a corporation who is domiciled and employed outside of New York State should not be included in the audit of the New York policy if:

   1. The officer performs no duties in New York State; or
   2. The officer visits New York occasionally, but only performs clerical duties in New York and is included under a workers’ compensation policy insuring that corporation in another state.
10. Inactive
    
    1. An executive officer of a corporation is considered inactive if:
       
       1. his/her office is merely nominal or honorary;
       2. the officer does not exercise any function of the office; or
       3. the officer does not perform any other duties on behalf of the corporation except as a director thereof, and the officer rarely enters the premises except to attend directors’ meetings.
    2. Examples of executive officers who may be considered inactive, provided the required conditions stated above are met, include:
       
       1. An officer who is elected for the value of name or because of stock holdings.
       2. An officer who is required to retire or has ceased to perform any duties.
       3. A member of the principal stockholder’s family who is given an honorary official title.
11. Multiple Corporations or Policies – Multiple Carriers

    If the New York operations of a corporation or of two or more corporations that are combinable with each other in accordance with Rule 3 of the New York Experience Rating Plan Manual and are insured by more than one carrier, the premium charge specified in the Manual for each executive officer who performs any duties at New York locations covered by different carriers should be divided equally among the carriers involved.

    An exception to this Rule is if one of the carriers has agreed to hold harmless, in whole or in part, the other carrier or carriers with respect to such officer(s).  In this case, the premium charge is to be divided in accordance with the hold harmless agreement.  Refer to “New York Executive Officers Hold Harmless Endorsement” (WC 31 06 03).

12. Multiple Corporations or Policies – Single Carrier

    If the New York operations of a corporation or of two or more corporations are combinable with each other, in accordance with Rule 3 of the New York Experience Plan Manual and are insured by one or more policies issued by the same carrier, a single premium charge is made for each insured executive officer based upon entire remuneration received from all such corporations, subject to the minimum/maximum remuneration for executive officers shown on the “Miscellaneous Values” pages in Part Three – Loss Costs of this Manual.

1. Definitions
   
   1. A sole proprietor is a self-employed person.  A partnership is an association of two or more persons to carry on as co-workers a business for profit as defined in Section Ten of the New York Partnership Law.
   2. A limited partner, in general, invests capital only, and is exempt from personal liability or risk beyond the investment contributed to the firm.  Such partners do not hold themselves out as general partners nor participate in the conduct of the business in any manner.
   3. A partner, as used in this Rule, shall also include members (not managers or titled “officers”) of a Limited Liability Company (“LLC”), and partners of a Professional Service Liability Company (“PSLC”) or a Registered Limited Liability Partnership (“RLLP”) established pursuant to the New York Partnership Law.
2. Law and Status

   Sole proprietors and partners may elect to be covered under the policy by filing with the New York State Workers’ Compensation Board a notice of the election identifying the named individuals on a form prescribed by the New York State Workers’ Compensation Board.

3. Coverage
   
   1. Coverage for a sole proprietor or partner having other persons covered under a policy may be afforded by attaching the “New York Sole Proprietors, Partners and Members of LLC’s, PSLC’s, and RLLP’s Coverage Endorsement” (WC 31 03 13 C).
   2. Coverage for a sole proprietor or partner having no other persons requiring coverage may be afforded by obtaining a workers’ compensation policy.

      Note: Managers or employees with the title of an “officer” are not considered members of the partnership and are not subject to the payroll cap as shown under the “Miscellaneous Values” pages in Part Three – Loss Costs of this Manual.

   3. A sole proprietor or partner, who has previously elected coverage or has no other persons requiring coverage, may elect to be excluded from coverage.  Attach the “New York Sole Proprietors, Partners and Members of LLC’s, PSLC’s, RLLP’s Exclusion Endorsement” (WC 31 03 16 C).
4. Premium Determination
   
   1. Sole Proprietor and Partners Not Subject to the Construction Employment Payroll Limitation

      Premium for each sole proprietor or partner that has elected coverage is based on the minimum and maximum payrolls as shown under “Miscellaneous Values” pages in Part Three – Loss Costs of this Manual.

   2. Sole Proprietors and Partners Subject to the Construction Employment Payroll Limitation

      Premium for each sole proprietor or partner that has elected coverage is based on the minimum payroll as shown under “Miscellaneous Values” pages in Part Three – Loss Costs of this Manual.  The maximum payroll for premium determination is based on the payroll limitations set forth in Rule V Section (G)(3) of this Manual.

5. Assignment of Remuneration

   The remuneration of sole proprietors or partners is to be assigned to classifications under the rules of this Manual.

1. Law on Contractors, Subcontractors, and Owners of Timber

   The New York Workers’ Compensation Law (Section 56) provides that contractors are responsible for payment of benefits to employees of uninsured subcontractors.  When a subcontractor is uninsured, the contractor who retained the subcontractor is liable.  If that entity is also uninsured, the New York State Workers’ Compensation Board will assign responsibility to the first insured contractor in the chain of contract.  It further provides that owners of timber, other than farmlands, are responsible for payment of benefits to employees of uninsured contractors or uninsured subcontractors.

2. Coverage

   This statutory responsibility is automatically insured by the Standard Policy issued to the contractor or owner of timber.

3. Premium for Uninsured Subcontractors
   
   1. The contractor shall furnish to their carrier satisfactory evidence that the subcontractor had workers’ compensation insurance in force covering work performed for the contractor.  For each subcontractor for which such evidence is not furnished, the premium to be charged on the contractor’s policy shall be the premium computed by assigning the appropriate classification to the entire payroll expended by the subcontractor for the subcontracted work.

      Note: For this Rule, any uninsured subcontractor, or individual determined to be an employee, who performs construction/contracting work shall be classified under the classification which would apply to the subcontractor’s operations had only such operations been insured under a separate policy.  If the contractor’s classification includes the subcontracting operations(s), then the subcontractor or individual is assigned to that classification.

      For non-contracting operations, any uninsured subcontractor, or individual determined to be an employee, is to be classified either under the appropriate classification on the policy if the phraseology of the classification includes the subcontracted operation (such as entertainers in a restaurant/bar or drivers) or under the classification to which their work pertains if the classification does not include the operation in the phraseology.

      Any executive officer, sole proprietor, partner, or member of an LLC, etc., who has been excluded from coverage under their own company policy, via an exclusion endorsement, is to be included on the policy of the hiring company when they perform duties that pertain to the operations of the hiring company.

   2. The contractor must provide complete payroll records of the employees of each uninsured subcontractor, or individual determined to be an employee, for the purposes of establishing the appropriate premium.  If the contractor does not supply the payroll records of its subcontractor, premium is to be determined as follows:
      
      1. 331/3% of the subcontract price shall be considered payroll if the subcontract is for mobile equipment with operators (such as, but not limited to earth movers, graders, bulldozers, or log skidders).
      2. 50% of the subcontract price shall be considered payroll if the subcontract is for labor and material.
      3. 90% of the subcontract price shall be considered payroll if the subcontract is for labor only.

         Exception to (3)(b) above:

         In any case where investigation of a specific job discloses that a definite amount of the subcontract price represents payroll, premium shall be based on that amount.

   3. Uninsured construction subcontractors are subject to payroll limitation, as set forth in Rule V Section (G), when payroll is utilized for premium determination purposes.  When the contract price is used in lieu of payroll records, in accordance with Section (3)(b) of this Rule, that portion of the contract price considered as payroll shall be subject to territory differentials in accordance with Rule VI Section (J) of this Manual.
   4. Vehicles Under Contract: If vehicles with drivers, chauffeurs or helpers are engaged under contract and the owner of such vehicles has not furnished evidence that the workers’ compensation obligation has been insured, the total payroll of such drivers, chauffeurs, or helpers must be included as payroll of the insured employer which contracted for such vehicles.  If that payroll cannot be obtained, one-third (1/3) of the total contract price for the vehicles shall be considered as payroll of the drivers, chauffeurs or helpers.

      If the owner of a vehicle under contract is also a driver who may be entitled to workers’ compensation benefits and has not furnished evidence that such workers’ compensation obligation has been insured, 331/3% of the total contract price for that vehicle shall be included as payroll of the insured employer which contracted for the vehicle.

      Total contract price, for purposes of this Rule, includes the cost of fuel, maintenance, or other services provided to the owner or owner-operator of a vehicle under contract.

   5. If an experience rating modification has been established for the contractor, such factor is to be applied to the premium developed for the uninsured subcontractor.
   6. The above premium determination procedures are also applicable in the case of uninsured contractors or subcontractors engaged by owners of timber other than farmlands.
4. Piece Work, Drivers, Chauffeurs, and Helpers Under Contract

   This rule on subcontractors does not apply to contracts for piece work, nor to drivers, chauffeurs, or helpers on vehicles engaged under contract:

   1. The entire amount paid to piece workers is the payroll, as provided in Rule V Section (B)(2)(o) of this Manual.
   2. The rules on standard exceptions apply to drivers, chauffeurs or helpers on contract vehicles.
5. Law on Independent Contractors

   The 2010 Construction Industry Fair Play Act of the New York State Labor Law (Article 25-b) provides that an individual or worker may be considered an independent contractor, if all the following criteria are met:

   1. The individual is free from control and direction in performing the job, both under his or her contract; and
   2. The service performed is outside the usual course of business; and
   3. The worker is engaged in an independently established trade, occupation, profession, or business that is similar to the service performed.

   These criteria apply only to risks within the construction industry and are enforced by the New York State Workers’ Compensation Board.

6. Independent Contractors Status for Non-Construction or Trucking Industry

   The factors to be considered to determine whether an individual is an independent contractor, and thus not an employee, are enforced by the New York State Workers’ Compensation Board.   Refer to the New York State Workers’ Compensation Board at www.wcb.ny.gov for the current criteria.

   Under the New York State Commercial Goods Transportation Industry Fair Play Act (New York State Labor Law Article 25-c), for a driver to be an independent contractor, the alleged employer must be required to pay the driver via a Federal Income Tax form 1099, and the driver must be working under circumstances that meet all of the following criteria:

   1. The individual is free from control and direction in performing the job, both under his or her contract and in fact;
   2. The service must be performed outside the usual course of business for which the service is performed; and
   3. The individual is customarily engaged in an independently established trade, occupation, profession, or business that is similar to the service at issue.

   Refer to the New York State Labor Law § 862-b[1].

1. Law and Status

   Members of an auxiliary police organization authorized by local law may be covered under a policy if a municipal corporation, pursuant to local law, elects to cover such individuals.

2. Coverage

   Upon election, coverage may be effected by attaching the “New York Inclusion of Auxiliary Police Endorsement” (WC 31 03 14 A).

3. Premium Determination

   Premium is determined based on the reasonable value of services by auxiliary police and assigned to Code 7720 “Police Officers & Drivers.”

1. Explanation

   A Standard Policy with the provision that the employer will pay for all medical and hospital services required by law, when the employer is operating a properly equipped hospital or medical facility which is authorized or licensed by the New York State Workers’ Compensation Board, may only be issued in conjunction with an independently filed large deductible plan or as a retrospectively rated policy subject to the rules of the New York Retrospective Rating Plan. Attach the “New York Medical Benefits Reimbursement Endorsement” (WC 31 03 10) to such policy. Any deductible credits or retrospective rating parameters used in the determination of premiums for such policy must reflect the exclusion of medical losses from coverage.

2. Documentation Required

   A carrier which intends to issue a policy excluding medical coverage must obtain documentation that an employer has received authorization by the New York State Workers’ Compensation Board to furnish medical and hospital services. If the insured is a hospital, approval is not required.

3. Rates and Premium

   For any location insured on an excluding medical basis, use the carrier’s approved excluding medical rate to compute premium for the applicable classifications. To obtain the excluding medical loss cost for the applicable classification, contact the Rating Board at exmed@nycirb.org.

On any policy which provides that an employer must comply with the statutory obligations for medical aid with respect to operations at or from a specified location, coverage for excess medical losses incurred in connection with such operations may be provided in accordance with the following rules:

1. Coverage

   The coverage shall provide indemnification to the employer for the amount that is agreed upon by the employer and documented in the required endorsement as noted in item (2) below.

2. Form of Endorsement

   Excess medical coverage shall be provided by attaching the “New York Excess Medical Coverage Endorsement” (WC 31 03 03 A) to the excluding medical policy.  A separate premium charge must be made for this coverage.

3. Rates

   The carrier’s approved rate per $100 of payroll, or other unit of exposure for each classification, is calculated by multiplying the appropriate statutory medical coverage carrier’s approved rate by the excess medical factor for such classification and carried out to three decimal places. The derivation of such excess medical factor shall (i) reflect the specific terms of the excess medical coverage, and (ii) be properly documented by the carrier. The final rate for the excess medical coverage must be agreed to by the employer.

4. Premium

   The premium is determined separately from all other premium under the policy by the application of the appropriate excess medical coverage carrier’s approved rate to the payroll or other exposure basis for each classification.  The premium developed under the “New York Excess Medical Coverage Endorsement” (WC 31 03 03 A) shall not be subject to the premium discount provisions of this Manual, nor shall any experience developed under such endorsement be used in the experience rating of the employer or be included in any retrospective rating agreement which may otherwise be applicable to the policy.

1. “New York Executive Officers Exclusion Endorsement” (WC 31 03 04), and “New York Executive Officers Hold Harmless Endorsement” (WC 31 06 03).
2. “New York Exclusion for Designated Officers and Employees of Fire Districts Endorsement” (WC 31 06 02).
3. “New York Designated Workplace Cancelation Endorsement and Notice of Partial Cancelation” (WC 31 03 02 A).
4. “New York Non-Subject Employees Exclusion Endorsement” (WC 31 03 11).
5. “New York Liability of Municipalities to Police Officers or Paid Firefighters’ Exclusion Endorsement” (WC 31 03 07).
6. “New York Exclusion for Designated Officers and Employees of Ambulance Districts Endorsement” (WC 31 06 11 A).
7. “New York Ambulance and Fire District Liability Exclusion Endorsement for County or Town Policies” (WC 31 06 12).
8. “New York Ambulance District Liability Exclusion Endorsement for County or Town Policies” (WC 31 06 09 A).
9. “New York Fire District Liability Exclusion Endorsement for County or Town Policies” (WC 31 06 04 A).
10. “New York Sole Proprietors, Partners and Members of LLC’s, PSCL’s, RLLP’s Exclusion Endorsement” (WC 31 03 16 C).
11. “Designated Workplaces Exclusion Endorsement” (WC 00 03 02).
12. “New York Professional Employer Organization (PEO) Exclusion Endorsement” (WC 31 03 18 A).
13. “New York Optional Professional Employer Organization (PEO) Exclusion Endorsement” (WC 31 03 21 A).
14. “New York Optional Client Exclusion Endorsement” (WC 31 03 22 A).

1. Coverage

   Under the deductible program, the insurer pays all amounts in their entirety applicable to each compensable claim under Part One of the policy.  The insurer then obtains reimbursement from the policyholder subject to the limits of the deductible amount for each occurrence.  The policyholder is liable to the insurer for the deductible amount regarding benefits paid for compensable claims, and failure by a policyholder to reimburse any deductible amounts to the insurer is treated in the same manner as nonpayment of premiums.

   A carrier shall offer, at the option of the policyholder, a deductible for benefits payable under a workers’ compensation policy with an annual premium of $12,000 or more either as part of the policy or by endorsement, if in the opinion of the carrier the policyholder has paid the entire billed premium on the policy for all policy periods within 45 days of each billing for the past three years.

   One of the following deductible amounts, per occurrence, shall be offered to a policyholder: $100, $200, $300, $400, $500, $1,000, $1,500, $2,000, $2,500 or $5,000.

   A policyholder will continue to be eligible for a deductible provided that no part of any premium is more than 45 days overdue from the date billed or reimbursement for any deductible amount is unpaid by the policyholder to such insurer.

   A carrier that has issued a policy with a deductible may revoke the policyholder’s entitlement to a deductible if the policyholder fails to reimburse any deductible amounts, or pay any billed premium, within 45 days after such reimbursement or premium payment has become due.  Upon such revocation of a policyholder’s entitlement to a deductible, the policyholder shall be entitled to cancel such policy and such policyholder will forfeit eligibility for entitlement to a deductible as provided above.

   A carrier may, at its option, offer a deductible in an amount specified above to any policyholder who is not otherwise eligible for a deductible under this Rule.

2. Premium

   The election of a deductible by a policyholder results in a premium credit being applied against the policy premium.

   The credit reflects both the chosen deductible amount, and the hazard group of the classification with the highest estimated amount of premium developed for any classification on the policy.  The appropriateness of this credit, as it relates to the proper hazard group, is subject to verification upon audit.

   The deductibles paid by the insured employer during any one-year policy of insurance shall not exceed the estimated annual premium at inception for such policy of insurance.

   A table of loss elimination ratios, which can be used to determine deductible credit amounts, is shown in the “Miscellaneous Values” in Part Three – Loss Costs of this Manual.  The premium reduction for the deductible is determined before application of any experience modification, premium discount or policy charge.

3. Form of Endorsement

   Attach the “New York Benefits Deductible Endorsement” (WC 31 03 15 A) to a policy written under this deductible program and state the appropriate deductible amount.

4. Exclusion

   Policies written to provide Ex-Medical coverage, under Section (E) of this Rule, are not eligible for inclusion under this deductible program.

1. Explanation

   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:

   0042	5102	5402	5506	5701	6233	7601
   3365	5160	5403	5507	5703	6235	7855
   3724	5183	5428	5508	5709	6251	8227
   3726	5184	5429	5536	6003	6252	9526
   3737	5188	5443	5538	6005		9527
   5000	5190	5445	5545	6017	6306	9534
   5022	5193	5462	5547	6018	6319	9539
   5037	5213	5473	5606	6045	6325	9545
   5040	5221	5474	5610	6204	6400	9549
   5057	5222	5479	5645	6216	6701	9553
   5059	5223	5480	5648	6217	7536
   	5348	5491	5651	6229	7538

2. Application

   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.

3. Payroll and Credit Determination
   1. 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.

   2. Credit Determination
      1. 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.
      2. In the absence of specific records for salaried employees, it will be assumed each such individual worked forty (40) hours per week.
      3. 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

      4. 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%).

4. 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.

5. Audit
   1. 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.
   2. 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.
6. 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.”

7. Form of Endorsement

   The “New York Construction Classification Premium Adjustment Program Explanatory Endorsement” (WC 31 03 19 N) must be attached to each policy.

8. 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.

This program applies to employers previously written under certain classifications that are scheduled to be discontinued.The carrier will continue to use this code during the transition period. The Rating Board will publish a transitional loss cost on the Loss Cost pages of the Manual for the codes that will be discontinued. The transitional loss costs will be provided over the defined period of time, based upon the target date of the actual discontinuation of the code. When the transition period is complete, the code will no longer be available for use and will be replaced by the code to which it is transitioning

Refer to the New York Experience Rating Plan Manual for the Transition Program applicable to expected loss rates.

1. Waivers

   A provision in the Standard Policy allows the carrier to waive its right of recovery against anyone liable for an injury covered by the policy. Attach the “Waiver of Our Right to Recover from Others Endorsement” (WC 00 03 13) to waive right of recovery.

2. Premium
   
   1. Specific

      Specific waiver means that the carrier waives the right to recover from specific third parties listed on the policy who may be liable for an injury covered by the policy.  A premium charge of 5% to 10% of the manual premium developed in conjunction with the work for which the waiver is provided shall apply for each person or organization named in the endorsement, subject to a minimum premium of $250 per policy.

   2. Blanket

      Blanket waiver means the carrier waives the right to recover from any third party liable for an injury covered by the policy.  A premium charge equal to 2% to 10% of the policy manual premium shall apply, subject to a minimum premium of $250 per policy.

      Note: If a premium charge other than the minimum percentage is used, the underwriting file shall include documentation of the reason for the higher percentage.

1. Explanation

   The New York State Assessment is a separate identifiable charge to policyholders for the funding of the various expenses described in Section 151 of the Workers’ Compensation Law.

2. General Information

   The New York State Assessment amount must be displayed as a separate identifiable charge on the policy Information Page. Statistical Code 0932 “New York State Assessment” must be used in conjunction with this charge for policy reporting purposes only.

   The New York State Assessment amount is subject to change at audit.

3. Determination of Assessment

   Refer to the New York State Workers’ Compensation Board at www.wcb.ny.gov for procedures to determine the New York State Assessment.

4. Assessment Charge

   The assessment percentages to be applied to each policy can be found in the “Miscellaneous Values” pages in Part Three – Loss Costs of this Manual.

1. Explanation

   The New York Workers’ Compensation Security Fund Surcharge is a separate identifiable charge to policyholders for the funding of the Workers’ Compensation Security Fund which serves as the guaranty fund for fulfilling the obligations of insolvent private carriers writing workers’ compensation in the state of New York.

   The New York State Department of Financial Services, as required by statute, determines when this surcharge is necessary.

2. General Information

   When applicable, the New York Workers’ Compensation Security Fund Surcharge amount must be displayed as a separate identifiable charge on the policy Information Page.  Statistical Code 9749 “New York WC Security Fund Surcharge,” must be used in conjunction with this charge.

   The New York Workers’ Compensation Security Fund Surcharge amount is subject to change at audit and at all subsequent retrospective rating adjustments.

   The New York Workers’ Compensation Security Fund Surcharge amount is charged in conjunction with the effective date of the carrier’s approved rates used on each policy.

3. Premium Base for Calculating the Security Fund Surcharge

   The total policy premium is the premium base to which the surcharge percentage, shown in the “Miscellaneous Values” pages in Part Three – Loss Costs section of this Manual, applies.

1. Terrorism

   For payroll based classifications, the terrorism premium is calculated by dividing the risk’s total payroll by units of $100 and multiplying by the carrier terrorism rate.  The calculation is expressed as (Payroll/100 x Terrorism Rate = Premium).

   For non-payroll based classifications, the premium for terrorism is calculated as a percentage, multiplied by the non-payroll classification premium.

   The terrorism premium is not subject to any other modifications including, but not limited to, carrier premium discount, experience rating or retrospective rating.

   Unless an “If Any” policy develops premium during the policy term or at audit, policies issued on an “If Any” basis will not be charged this premium.

   The “Terrorism Risk Insurance Program Reauthorization Act Disclosure Endorsement” (WC 00 04 22 C) must be attached to the policy and Statistical Code 9740 “Cat Provision – Terrorism Premium Charge” must be reported.

2. Natural Disasters and Catastrophic Industrial Accidents

   For payroll based classifications, the premium for Natural Disasters and Catastrophic Industrial Accidents is calculated by dividing a risk’s total payroll by units of $100 and multiplying by the carrier rate for Natural Disasters and Catastrophic Industrial Accidents.The calculation is expressed as (Payroll/100 x Rate = Premium).

   For non-payroll classifications the premium is calculated as a percentage, multiplied by the non-payroll classification premium.

   This premium is not subject to any other modifications including, but not limited to, carrier premium discount, experience rating or retrospective rating.

   Unless an “If Any” policy develops premium during the policy term or at audit, policies issued on an “If Any” basis will not be charged this premium.

   The “Catastrophe (Other Than Certified Acts of Terrorism) Premium Endorsement” (WC 00 04 21 E) must be attached to the policy and Statistical Code 9741 “Cat Provision – Natural Disasters & Catastrophic Industrial Accidents” must be reported.