N.Y. Comp. Codes R. & Regs. tit. 12 § 315.5

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

Section 315.5 - Withdrawal of securities or cash; nonrenewal of letters of credit: termination of surety bond

(a) Withdrawal of securities or cash; nonrenewal of letters of credit.

(1) A self-insurer who has discontinued business in this State or who has arranged for the payment of its compensation claims by one of the other methods provided by law may apply to the chair for the return of the securities or cash deposited or permission not to renew the letters of credit. Such self-insurer shall file a sworn statement of:

(i) all outstanding liabilities for compensation;

(ii) all pending claims for compensation; and

(iii) all accidents that have occurred during the period of two years prior to the date of application.

(2) After the lapse of 26 months, if all claims have been finally adjudicated and fully paid either by the self-insurer directly or by payment into the aggregate trust fund as provided in section 27 of the Workers' Compensation Law, and all expenses and assessments required by law have been paid, the chair may accept a self-insurer's release policy as specified in subdivision 3 of section 50 of the Workers' Compensation Law in an amount to be determined by the chair. On acceptance of such policy, the securities or cash of the self-insurer on deposit with the chair shall be returned to the self-insurer or, the chair shall notify the self-insurer that the letters of credit need not be renewed.

(b) Termination of surety bond. The chair, upon receipt of notice of termination of a surety bond filed by a self-insurer with the chair, may make demand upon the self-insurer to deposit with the chair, within 10 days after demand, securities or cash or file irrevocable letters of credit in an amount determined in accordance with sections 316.1, 316.2 and 316.3 of this Title. If the self- insurer fails to comply with such demand in the manner and sum and within the period required, the privilege of self-insurance may be terminated.

N.Y. Comp. Codes R. & Regs. Tit. 12 § 315.5