ALBANY, N.Y., February 6 – Workers compensation, market availability, and affordability and additional fraud legislation are an integral part of the comprehensive legislative program outlined by the Independent Insurance Agents & Brokers of New York (IIABNY) for the 2006 New York State legislative session.

Significant workers compensation reforms to reduce the costs in the system, while at the same time increasing the benefit levels, will improve economic development in New York State by keeping jobs here, declared Michael V. Barrett, IIABNY legislative representative. He said it is imperative that any increase in benefits be tied to reforms in the system.

While 1996 workers compensation reforms had a positive impact on rates, New York in 2000 still ranked ninth highest in comparative workers compensation costs with benefits among the lowest in the nation, Barrett pointed out.

The organization proposes the following reforms for workers compensation:

Enactment of objective medical guidelines developed by the American Medical Association to determine permanent partial disability;

Providing scheduled benefits for some injuries and non-scheduled benefits for others, with a reasonable cap on payments for permanent partial disability. The process will reduce costs while assuring benefit to the most seriously injured workers (according to a 1994 study, these two changes would reduce workers compensation premiums by 16.7 percent);

An increase in benefits for loss of wages due to disability. The maximum weekly benefit has been $400 since 1992, among the lowest in the nation, and has not kept pace with inflation;

An increase in disability benefits for workers injured off the job.

Barrett said that IIABNY has also been extremely concerned during the past few years about the cost of fraud in the New York automobile market. While there has been some improvement because of strong regulatory initiatives, New York still has some of the weakest laws in the country to address fraud. We urge the Legislature to pass meaningful additional fraud legislation that will help fight no-fault insurance fraud. IIABNY is calling for:

Mandatory arbitration of no-fault claims;

Implementation of medical protocols for no-fault injuries;

Increased penalties for acting as a runner.

Other IIABNY initiatives for this year include:

Making the New York Property Insurance Underwriting Association permanent;

Removing legislative and regulatory impediments to expansion of Health Savings Accounts and high deductible plans in New York;

Replacing the absolute liability language of the Labor Law with a more reasonable standard similar to that imposed on contractors and owners for failing to provide a safe place to work;

Support for voluntary agent/broker disclosure and support of incentive or profit sharing compensation arrangements between insurance companies and their agents and brokers;

Replacing separate agents and brokers licenses with a single producers license;

A single New York license with a common renewal date for property/ casualty and life agents.