N.Y. Comp. Codes R. & Regs. tit. 12 § 450.10

Current through Register Vol. 46, No. 51, December 18, 2024

Section 450.10 - Safety groups

(a) Employers insured in the State Fund may be formed into safety groups for the purpose of accident prevention and earning of dividends. Rules and regulations consistent with the purposes for which the Fund was created shall be formulated, with the approval of the commissioners, for the formation and conduct of such safety groups and proper evidence of approval of such rules by a majority of the membership of each such safety group so formed shall be furnished to the Fund.

(b) Accountings of premiums, losses, expenses and other charges for each such group shall be rendered at appropriate intervals and if the balance remaining to the credit of the group, at the close of any policy period, after due consideration for contingencies, is deemed adequate for such purpose, a dividend may be credited or paid to each individual member of the group in an amount equal to such proportion of said balance as the amount of the member's earned premium bears to the total earned premium of the group for that policy period. Such dividends may be declared on recommendation of the actuary and approval of the executive director. (See Part 451 for Basic Rules for Safety Groups.)

(c) An existing Fund safety group manager, with the written consent of the Executive Director, shall be authorized, with respect to the claims of group members or any policyholder which the Fund actuary determines to have anticipated claims in volume equivalent to or in excess of that paid by a safety group, to administer claims, medical examinations and services in a manner consistent with the provisions of sections 450.6, 450.7, and 450.9 of this Part. In authorizing a safety group manager to act under these sections the Executive Director shall determine that such consent is consistent with providing the policyholder with the lowest cost insurance consistent with the solvency of the Fund. The Executive Director shall have the right to rescind any authorization given to a safety group manager pursuant to this subdivision.

N.Y. Comp. Codes R. & Regs. Tit. 12 § 450.10