108. Payments into fund; returns; recoupment. 1. On or before the fifteenth day of February, May, August and November, of each year, every carrier shall file, quarterly, with the superintendent of financial services and with the commissioner of taxation and finance, identical returns, under oath, on a form to be prescribed and furnished by the superintendent of financial services, stating the amount of net written premiums for policies issued or renewed by such carrier, during the three months' periods ending, respectively, on the preceding December thirty-first, March thirty-first, June thirtieth, and September thirtieth, to insure payment of compensation pursuant to this chapter and/or the longshore and harbor workers' compensation act and stating the amount of dividends paid to policyholders during said period. For the purposes of this section "net written premiums" shall mean gross written premiums less return premiums on policies returned "not taken" and on policies cancelled, but shall not mean premiums for reinsurance.
2. For the privilege of carrying on the business of workers' compensation insurance in this state, every carrier shall pay into the fund for deposit in the workers' compensation security fund payment account established pursuant to section eighty-nine-f of the state finance law, upon filing each quarterly return, a sum equal to one per centum, provided, however, that the superintendent of financial services may require each carrier to pay into the fund not more than two per centum, of its net written premiums, less the amount of dividends paid to policyholders, for the period covered by such return, except when suspended in accordance with section one hundred nine of this article.
3. The provisions of this section shall not apply with respect to policies containing coverage pursuant to subsection (j) of section three thousand four hundred twenty of the insurance law relating to every policy providing comprehensive personal liability insurance on a one, two, three or four family owner-occupied dwelling.
4. The superintendent shall adopt a recoupment rate which shall enable each carrier to recoup over a reasonable length of time a sum reasonably calculated to recover the payments by the carrier under this section by way of a surcharge on premiums charged for insurance policies to which this section applies. Amounts recouped shall not be considered taxable for the purposes of article thirty-three of the tax law.
5. The amount of any surcharge on premiums pursuant to subdivison two of this section shall be separately stated on either a billing or policy declaration sent to an insured. The superintendent shall determine the rate of the surcharge and the collection period and these shall be mandatory for all carriers. Carriers who collect surcharges in excess of payments made pursuant to this section shall remit the excess to the superintendent within one hundred twenty days after the end of the collection period determined by the superintendent. The excess shall first be applied to reimburse, on an equitable basis, those carriers who are unable to collect surcharges equal to their paid assessments, and any excess thereafter shall be retained by the fund to reduce future assessments.
6. The statement of the amount of surcharge required to be provided by subdivision five of this section shall include a description of, and purpose for, the New York Workers' Compensation Security Fund, as follows:
"Companies writing workers' compensation insurance business in New York are required to participate in the New York Workers' Compensation Security Fund. If a company becomes insolvent, the security fund settles unpaid claims and assesses each insurance company for its fair share.
New York law requires all companies to surcharge policies to recover these assessments. If your policy is surcharged 'NY surcharge', an amount will be displayed on your premium notice."
Last modified: February 3, 2019