New York Workers' Compensation Plan Bonds

New YorkThe state of New York has a new law referred to as SB 8708. The new law is regarding Self-Insurer Group Trusts for Workers’ Compensation Plans and was presented and passed in both houses after 11 hours of the session. SB 8708 implements stricter financial regulations on group self-insurers for workers’ compensation plans by requiring audited financial statements on a yearly basis at the very least. The group trust is also asked to hire an administrator that must acquire a license and a surety bond in the amount of $500,000 for each group self-insurer administered. The Chair of the Workers’ Compensation Board can set the amount of the bond originating from its cost and availability in lieu of a $500,000 bond for each group administered. SB 8708 allows the chair to recover any penalties for intrusions that are considered opposing the administrator according to the law’s stipulations. The new law also grants a default offset fund and a task force on group self-insurance plans for workers’ compensation.