Executing the NY State Insurance Fund Reservation of Rights protocol is critical if you do not want to be surcharged for leaving the NYSIF.
As you may be aware if you want to leave The New York State Insurance Fund for greener pastures or a better offer for workers compensation insurance from the private market place you must reserve your rights within 30 days of the workers compensation insurance policy expiration date. Failure to do so will result in a penalty of at least 10% of the annual workers compensation insurance premium. Naturally, this little poison pill gets many a NY business owner sick, usually after the fact as many insurance brokers are no as conversant as they should be in the rule.
Thus in the spirit of good faith here are two important resources to help you execute.
Click Here
To download a sample letter you need to draft on your letterhead to let the carrier know your intentions so you can reserve your right to leave the NYSIF without penalty. This doesn’t mean you will, you just simply want the option just in case.
Click Here
To figure out who your NYSIF Underwriter is. This is the person the letter should be addressed to AND you should send to both electronically AND by Certified Mail just in case. It’s worth the $4 in case you do exercise your right to leave . If they come back with the penalty you can prove that you reserved your right and provide back up.
If you decide to remain with the NYSIF you must follow up with the underwriter and let them know your intent in writing or they will assume you left and cancel the policy. It’s tricky as reserving your rights SHOULD NOT mean auto cancel the policy, however, that is how the NYSIF interrupts the reservation of rights. Don’t let that trip you up. We suggest that you work with a Risk Advisor to guide you with this process . If they are a Metropolitan Risk Advisor they will do this gratis in appreciation for how time challenged you are. If you have any more questions about NY State Insurance Fund Reservation of Rights contact a Risk Advisor for more details. Simply complete the form below or give us a shout at (914) 357-8444. We are here for you.
Photo by Malcolm Lightbody on Unsplash
