211 - Provision for payment of benefits.
§ 211. Provision for payment of benefits. A covered employer shall, with his own contributions and the contributions of his employees, provide disability benefits to his employees in one or more of the following ways: 1. by insuring and keeping insured the payment of such benefits in the state fund, or 2. by insuring and keeping insured the payment of such benefits with any stock or mutual corporation or reciprocal insurer authorized to transact the business of accident and health insurance in this state, or 3. by furnishing satisfactory proof to the chair of the employers financial ability to pay such benefits, in which case the chair shall require the deposit of such securities as the chair may deem necessary of the kind prescribed in subdivisions one, two, three, four and five and paragraph a of subdivision seven of section two hundred thirty-five of the banking law or the deposit of cash or the filing of irrevocable letters of credit issued by a qualified banking institution as defined by rules promulgated by the chair or the filing of the bond of a surety company authorized to do business in this state, conditioned on the payment by the employer of its obligations under this article and in form approved by the chair, or the posting and filing of a combination of such securities, cash, irrevocable letters of credit and surety bonds in an amount to be determined by the chair, to secure his or her liability to pay the compensation provided in this chapter. The amount of deposit or of the penal sum of the bond shall be determined by the chair and shall not be less than one-half the estimated contributions of the employees of the employer for the ensuing year or one-half of the contributions of the employees which would have been paid by the employees during the preceding year, whichever is the greater, or if such amount is more than fifty thousand dollars an amount not less than fifty thousand dollars. The chair shall have authority to deny an application to provide benefits pursuant to this subdivision or to revoke approval at any time for good cause shown. In the case of an employer who maintains a deposit of securities, irrevocable letters of credit or cash in accordance with subdivision three of section fifty of this chapter, the chair may reduce the amount of the deposit or of the penal sum of the bond, provided the securities, irrevocable letters of credit or cash deposited by or for such employer under subdivision three of section fifty of this chapter are, by agreement satisfactory to the chair, made available for the payment of unpaid benefits under this article with respect to obligations incurred for disabilities commencing prior to the effective date of such revocation. An association of employers or employees authorized to pay benefits under this article or the trustee or trustees paying benefits under a plan or agreement authorized under subdivisions four and five of this section, may with the approval of the chair furnish such proof and otherwise comply with the provisions of this section to provide disability benefits to employees under such plan or agreement. 4. by a plan in existence on the effective date of this article. If on the effective date of this article the employees of a covered employer or any class or classes of such employees are entitled to receive disability benefits under a plan or agreement which remains in effect on July first, nineteen hundred fifty, the employer, subject to the requirements of this section, shall be relieved of responsibility for making provision for benefit payments required under this article until the earliest date, determined by the chairman for the purposes of this article, upon which the employer shall have the right to discontinue the provisions thereof or to discontinue his contributions towards the cost. Any such plan or agreement may be extended, with orwithout modification, by agreement or collective bargaining between an employer or employers or association of employers and an association of employees, in which event the period for which the employer is relieved of such responsibility shall include such period of extension. Any other plan or agreement in existence on the effective date of this article which the employer may, by his sole act, terminate at any time, or with respect to which he is not obligated to continue for any period to make contributions, may be accepted by the chairman as satisfying the obligation to provide for the payment of benefits under this article if such plan or agreement provides benefits at least as favorable as the disability benefits provided by this article and does not require contributions of any employee or of any class or classes of employees in excess of the statutory amount provided in section two hundred nine, subdivision three, except by agreement and provided the contribution is reasonably related to the value of the benefits as determined by the chairman. The chairman may require that the employer shall enter into an agreement in writing with the chairman that he will pay the assessments set forth in sections two hundred fourteen and two hundred twenty-eight and that until he shall have filed written notice with the chairman of his election to terminate such plan or agreement or to discontinue making necessary contributions to its cost, he will continue to provide for the payment of the disability benefits under such plan or agreement. During any period in which any plan or agreement or extension thereof authorized under this subdivision provides for payment of benefits under this article, the responsibility of the employer and the obligations and benefits of the employees shall be as provided in said plan or agreement rather than as provided under this article, other than the benefits provided in section two hundred seven, and provided the employer or carrier has agreed to pay the assessments described in sections two hundred fourteen and two hundred twenty-eight. Any such plan or agreement may be extended with or without modification, provided the benefits under such plan or agreement, as extended or modified, shall be found by the chairman to be at least as favorable as the benefits provided by this article. 5. by a new plan or agreement. After the effective date of this article, a new plan or agreement with a carrier may be accepted by the chairman as satisfying the obligation to provide for the payment of benefits under this article if such plan or agreement shall provide benefits at least as favorable as the disability benefits provided by this article and does not require contributions of any employee or of any class or classes of employees in excess of the statutory amount provided in section two hundred nine, subdivision three, except by agreement and provided the contribution is reasonably related to the value of the benefits as determined by the chairman. Any such plan or agreement shall continue until written notice filed with the chairman of intention to terminate such plan or agreement, and any modification of such plan or agreement shall be subject to the written approval of the chairman. During any period in which any plan or agreement or extension thereof authorized under this subdivision provides for payment of benefits under this article, the responsibility of the employer and the obligations and benefits of the employees shall be as provided in said plan or agreement rather than as provided under this article, other than the benefits provided in section two hundred seven, and provided the employer or carrier has agreed to pay the assessments described in sections two hundred fourteen and two hundred twenty-eight. 6. if any plan or agreement authorized under subdivisions four and five of this section covers less than all of the employees of a coveredemployer, the provisions of this article shall apply with respect to his remaining employees not covered under such plan or agreement. The chairman may make reasonable regulations for the filing under subdivisions four and five of this section of plans and agreements to provide for the payment of benefits under this article.