N.Y. Comp. Codes R. & Regs. tit. 12 § 315.3

Current through Register Vol. 46, No. 45, November 2, 2024

Section 315.3 - Securities, cash, surety bond and/or letters of credit

(a) The applicant shall deposit with the chairman securities of the kind specified in subdivisions 1, 2, 3, 4, 5, and paragraph (a) of subdivision 7 of section 235 of the New York State Banking Law. Such securities shall be registered in the name of "Chairman, Workers' Compensation Board, State of New York." Interest paid on securities on deposit will be regularly remitted to the self-insurer for whose account they are deposited, so long as such self-insurer complies with this Subchapter and the provisions of the Workers' Compensation Law, and is not in default in the payment of compensation or other obligation under the Workers' Compensation Law.

(b) A cash deposit may be deposited in lieu of securities, surety bond or letters of credit. Such cash deposit will be deposited in an interest-bearing account in the name of "Chair, Workers' Compensation Board, State of New York" and shall be in an account authorized by the Comptroller of the State of New York. Such cash deposit is to be by certified check. Interest paid on the cash deposit will be regularly remitted to the self-insurer for whose account it is deposited so long as such self-insurer complies with the provisions of the Workers' Compensation Law and is not in default in the payment of compensation or other obligation under the Workers' Compensation Law.

(c) Surety bonds accepted in lieu of securities, cash, or letters of credit shall be undertaken and enforced in the name of the "Chair, Workers' Compensation Board, State of New York" and shall be in form approved by the chair and issued by a company authorized by the Superintendent of Insurance to write business as a surety in the State of New York.

(d) To be acceptable, a letter of credit must comply with all requirements set forth in Regulation 133 of the New York State Insurance Department, codified as Part 79 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York, except that:

(1) the beneficiary shall be the Chair, Workers' Compensation Board, State of New York;

(2) the evergreen clause shall provide for at least 60 days written notice to the Chair of the Workers' Compensation Board prior to expiry date for nonrenewal;

(3) a bank, to be a qualified bank, may in lieu of a determination by the Securities Evaluation Office of the National Association of Insurance Commissioners for purposes of 11 NYCRR, section 79.1(e)(3), have either a long-term debt rating equal to Baa/BBB or better by Moody's or Standard & Poor's or the equivalent thereto from any other securities rating service, and/or a short-term debt rating of P2/A2 from Moody' s or Standard & Poor's or the equivalent thereto from any other securities rating service;

(4) the letter of credit shall additionally provide that any legal proceedings with respect thereto be subject to the jurisdiction of the courts of the State of New York; and

(5) the form and content thereof shall be acceptable to the chair.

N.Y. Comp. Codes R. & Regs. Tit. 12 § 315.3