Section 2304. Rate making and supporting information

(a) In the making of
  rates, consideration  shall  be  given  to  past  and  prospective  loss
  experience, including the conflagration and catastrophe hazards, if any,
  both   within   and  without  this  state,  to  all  factors  reasonably
  attributable to the class of risks, to a reasonable profit, to past  and
  prospective expenses both country-wide and those specially applicable to
  this  state, and in the case of participating insurers to policyholders'
  dividends, savings or unabsorbed premium deposits allowed or returned to
  policyholders, members or subscribers.
    (b) The information furnished in support of a filing may include:
    (1) the  experience  or  judgment  of  the  insurer  or  rate  service
  organization making the rate;
    (2) its interpretation of any statistical data it relies upon;
    (3) the experience of other insurers or rate service organizations; or
    (4) any other relevant factors.
    (c)  Risks  may be grouped by classifications for the establishment of
  rates and minimum premiums. Classification  rates  may  be  modified  to
  produce rates for individual risks in accordance with rating plans which
  establish  standards  for  measuring  variations  in  hazards or expense
  provisions, or both. Such standards may measure  any  differences  among
  risks  that can be demonstrated to have a probable effect upon losses or
  expenses.
    (d) The systems of expense provisions included in the rates for use by
  any insurer or group of insurers may differ from those of other insurers
  or groups of insurers to  reflect  the  requirements  of  the  operating
  methods  of  any such insurer or group with respect to one or more kinds
  of insurance, or subdivisions of  kinds  of  insurance,  or  classes  of
  risks,  or  any part or combination of the foregoing, for which separate
  expense provisions are applicable.
    (e)(1) Premiums for workers' compensation  insurance  for  employments
  classified  under sections two hundred twenty, two hundred forty and two
  hundred forty-one of  the  labor  law,  provided  such  employments  are
  classified  under  each  of  said  sections, shall be established on the
  basis of payroll and  a  formula  which  provides  appropriate  credits,
  provided  such  credits  shall  not  apply  to  payroll in excess of the
  payroll limitation amount  set  forth  in  subdivision  two  of  section
  eighty-nine  of  the workers' compensation law and this subsection. With
  the exception of employments engaged in the construction of one  or  two
  family  residential  housing, premiums shall be calculated in accordance
  with the following limitations:
    (A)  For  policies  with  rating  anniversary  dates  after  September
  thirtieth,  nineteen  hundred  ninety-nine and before October first, two
  thousand, an employer's payroll for premium computation purposes in  the
  affected construction classifications shall be the actual weekly payroll
  per  employee  for  the number of weeks employed subject to a maximum of
  nine hundred  dollars  per  week  per  employee  plus  one-half  of  the
  difference between the employer's total payroll and the limited payroll.
    (B)  For  policies  with  rating  anniversary  dates  after  September
  thirtieth, two thousand and before October first, two thousand  one,  an
  employer's  payroll  for  premium  computation  purposes in the affected
  construction classifications shall be  the  actual  weekly  payroll  per
  employee  for  the number of weeks employed subject to a maximum of nine
  hundred dollars per week per employee.
    (C)  For  policies  with  rating  anniversary  dates  after  September
  thirtieth,  two thousand one and before October first, two thousand two,
  an employer's payroll for premium computation purposes in  the  affected
  construction  classifications  shall  be  the  actual weekly payroll per

  employee for the number of weeks employed subject to a maximum of  eight
  hundred dollars per week per employee.
    (D)  For  policies  with  rating  anniversary  dates  after  September
  thirtieth,  two  thousand  two,  an  employer's  payroll   for   premium
  computation  purposes in the affected construction classifications shall
  be the actual weekly payroll  per  employee  for  the  number  of  weeks
  employed  subject  to  a  maximum  of the greater of seven hundred fifty
  dollars per week or the weekly payroll amount  upon  which  the  maximum
  weekly benefit is based, per employee.
    (2) The loss costs applicable to employments classified under sections
  two  hundred  twenty, two hundred forty and two hundred forty-one of the
  labor law, provided such employments are classified under each  of  said
  sections,  shall be adjusted to reflect the payroll limitations required
  by this section as they separately affect such rates for  work  actually
  performed within each of the following geographic territories:
    (A) Territory 1 comprising the counties of the Bronx, Kings, New York,
  Queens, and Richmond;
    (B)  Territory  2 comprising the counties of Dutchess, Nassau, Orange,
  Putnam, Rockland, Suffolk and Westchester; and
    (C) Territory 3 comprising all other counties within the state.
    (f) The rate adjustments required by subsection (e)  of  this  section
  shall  be  filed  by the New York compensation insurance rating board in
  accordance with the provisions of section  two  thousand  three  hundred
  forty-seven  of  this  article,  and  shall  not  become effective until
  approved by the superintendent.
    (g) "Loss costs," for the purpose of workers'  compensation  insurance
  in  this article, means that portion of a rate intended to represent the
  anticipated  costs  of  claim  payments  and  loss  adjustment  expenses
  associated  with  such claim payments, and may include one or more trend
  factors. Loss costs do not include provisions for expenses  (other  than
  loss adjustment expenses) such as acquisition costs, overhead and taxes,
  or  profit.  For  all  other  purposes,  the  superintendent,  except as
  otherwise provided in this chapter, may promulgate regulations  defining
  loss costs.
    (h)  A loss cost filing shall be deemed to be a rate filing under this
  article.
    (i) Nothing in this section shall prohibit the application of  payroll
  limitation  provisions at the discretion of the superintendent, provided
  such programs were in  effect  prior  to  the  effective  date  of  this
  subsection.