Representatives from two New York agents' associations – the Independent Insurance Agents and Brokers of New York (IIABNY), and the Professional Insurance Agents of New York (PIANY) – expressed concerns about the implementation of the state's workers' compensation reform legislation passed in March. But opinions differed as to what parts of the reforms were causes for concern.
One issue cited by Jamie Deapo, member advocate and assistant vice president of member programs for IIABNY, involves the Aggregate Trust Fund (ATF). According to the legislation, carriers that sell workers' compensation in New York must pay the “present value” of permanent partial disability (PPD) benefits into the ATF.
Mr. Deapo stated that insurers who pay into the ATF are not eligible for a refund in the event of an over-estimate, but must pay more in the event of an under-estimate. “Imagine you have a younger person that gets a PPD, and you throw up $200,000 for this gentleman or lady, and a couple of years later they're killed in a car accident. You don't get any of that money back,” Mr. Deapo explained.
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