New York Codes, Rules and Regulations
Title 12 - DEPARTMENT OF LABOR
Chapter V - Workers' Compensation
Subchapter B - Self-insurers
Part 316 - Rules
Section 316.5 - Consolidation of security deposits
Current through Register Vol. 46, No. 12, March 20, 2024
(a) A corporation which has qualified as, or has applied to become, a self-insurer pursuant to the provisions of subdivision 3 of section 50 of the Workers' Compensation Law may apply to the chair for permission to establish a consolidated deposit with one or more subsidiary corporations of which it is the owner, directly or indirectly, of at least a majority of the voting shares. Such application shall be accompanied by an agreement, in the form prescribed by the chair, duly approved by the board of directors of each corporation that the corporate parties and the aggregate amount of securities and/or cash, the aggregate amount of the penal sums of the surety bonds and/or the aggregate amount of the letters of credit deposited or to be deposited with the chair by them, individually and collectively, at all times shall be liable and shall be available, at the discretion of the chair, for the payment of any and all compensation, death benefits, administrative expenses, assessments, and/or other charges or obligations for which the corporation and/or each and every one of the subsidiary corporations shall be liable under the Workers' Compensation Law and under the rules and regulations of the Workers' Compensation Board and/or of its chair.
(b) A not-for-profit corporation which has qualified as, or has applied to become, a self- insurer pursuant to the provisions of subdivision 3 of section 50 of the Workers' Compensation Law may apply to the chair for permission to establish a consolidated deposit with one or more not-for-profit corporations of which it is the owner, directly or indirectly, of at least a majority interest. For purposes of this section, a determination of majority interest shall be based on:
(c) The chair, in his or her discretion, may permit the establishment of a consolidated deposit of securities and/or cash in an amount and/or the filing of surety bonds in an aggregate penal sum and/or of letters of credit in an aggregate amount which shall be determined in accordance with the provisions of the Workers' Compensation Law and with the rules and regulations promulgated thereunder.