PIA Looks for Remedy on WC Law in NY

Last week the Professional Insurance Agents associations of Connecticut, New Hampshire, New Jersey and New York State Inc. jointly asked for legislation in New York state to solve a problem linked to a recent workers’ compensation law that is causing major problems for members trying to advise out-of-state clients. The difficulties were caused inadvertently by the 2007 New York workers’ compensation law, which subjects some out-of-state clients to new, confusing and costly coverage and enforcement exposures.  
  
Agents in states neighboring New York were caught by surprise by the unintended effects of the law and frustrated that they have no direct recourse with Empire State legislators on the issue. But, at least PIA affiliates have some solace knowing their sister affiliate in New York is working on their behalf from inside the home of the Big Apple.  
  
Acknowledging that the newest draft from the New York state governor’s office is much improved over previous drafts in terms of clarity, the associations, nonetheless, indicated more is needed to promote compliance certainty for out-of-state employers.   
  
“While we appreciate the clarity given to contacts in New York, agents are still not given the clarity they need to confidently advise out-of-state clients with respect to New York operations,” said Diane Fowler, CAE, executive director, PIACT, PIANH, PIANH and PIANY.  
  
PIA believes that the Workers’ Compensation Board should be authorized by statute to determine and set objective criteria for the type of New York state employment that requires New York state workers’ compensation exposures to be covered in a specific part of the policy form.   
  
“Out-of-state employers who have Part Three coverage in New York should not have to duplicate this coverage with Part One coverage when there is no impact on the injured worker,” said Fowler. “Injured workers who are eligible for New York benefits are protected exactly the same.”  
  
The associations support language mandating Part Three coverage to be recognized by statute as satisfying the requirements of the law when the proposed threshold requiring 3.A. coverage has not been crossed.  
  
Based largely on input from its sister affiliates in New Jersey and Connecticut, PIANY is keenly aware of the difficulties caused by the 2007 New York workers’ compensation changes for members serving out-of-state clients, and for PIA members in other states whose clients may now be subject to new coverage and enforcement exposures. PIANY’s board of directors has set a high priority on achieving greater clarification for the protection of member agents and their customers.  
  
“If a law is worth enacting to protect the public, then compliance with that law is clearly important,” said Fowler. “Compliance is more likely to occur when the requirements of the law are spelled out. Out-of-state employers need to have certainty regarding this issue.”