Section 108. Payments into fund; returns; recoupment

1. On or before the
  fifteenth day of February, May, August and November, of each year, every
  carrier shall file, quarterly, with the superintendent of insurance  and
  with  the commissioner of taxation and finance, identical returns, under
  oath, on a form to be prescribed and furnished by the superintendent  of
  insurance,  stating  the  amount  of  net  written premiums for policies
  issued or renewed by such carrier,  during  the  three  months'  periods
  ending,  respectively,  on  the  preceding  December thirty-first, March
  thirty-first, June thirtieth, and September thirtieth, to insure payment
  of compensation pursuant to this chapter and/or the longshore and harbor
  workers' compensation act and stating the amount of  dividends  paid  to
  policyholders  during said period. For the purposes of this section "net
  written premiums" shall mean gross written premiums less return premiums
  on policies returned "not taken" and on policies  cancelled,  but  shall
  not mean premiums for reinsurance.
    2.  For  the  privilege  of  carrying  on  the  business  of  workers'
  compensation insurance in this state, every carrier shall pay  into  the
  fund  for  deposit  in  the  workers' compensation security fund payment
  account established pursuant  to  section  eighty-nine-f  of  the  state
  finance  law,  upon filing each quarterly return, a sum equal to one per
  centum, provided, however, that  the  superintendent  of  insurance  may
  require  each carrier to pay into the fund not more than two per centum,
  of its net written premiums,  less  the  amount  of  dividends  paid  to
  policyholders,  for  the  period  covered  by  such  return, except when
  suspended in accordance with section one hundred nine of this article.
    3. The provisions of this section shall  not  apply  with  respect  to
  policies containing coverage pursuant to subsection (j) of section three
  thousand  four  hundred  twenty  of  the insurance law relating to every
  policy providing comprehensive personal liability insurance  on  a  one,
  two, three or four family owner-occupied dwelling.
    4. The superintendent shall adopt a recoupment rate which shall enable
  each carrier to recoup over a reasonable length of time a sum reasonably
  calculated  to recover the payments by the carrier under this section by
  way of a surcharge on premiums charged for insurance policies  to  which
  this  section  applies. Amounts recouped shall not be considered taxable
  for the purposes of article thirty-three of the tax law.
    5. The amount of any surcharge on premiums pursuant to subdivison  two
  of this section shall be separately stated on either a billing or policy
  declaration  sent  to an insured. The superintendent shall determine the
  rate of the surcharge and the  collection  period  and  these  shall  be
  mandatory for all carriers. Carriers who collect surcharges in excess of
  payments  made  pursuant  to  this section shall remit the excess to the
  superintendent within one hundred twenty  days  after  the  end  of  the
  collection  period  determined  by  the superintendent. The excess shall
  first be applied to reimburse, on an equitable basis, those carriers who
  are unable to collect surcharges equal to their  paid  assessments,  and
  any  excess  thereafter  shall  be retained by the fund to reduce future
  assessments.
    6. The statement of the amount of surcharge required to be provided by
  subdivision five of this section shall include  a  description  of,  and
  purpose  for,  the  New  York  Workers'  Compensation  Security Fund, as
  follows:
    "Companies writing workers' compensation  insurance  business  in  New
  York  are  required to participate in the New York Workers' Compensation
  Security Fund. If a company becomes insolvent, the security fund settles
  unpaid claims and assesses each insurance company for its fair share.

    New York law requires all companies to surcharge policies  to  recover
  these  assessments.  If  your  policy  is  surcharged 'NY surcharge', an
  amount will be displayed on your premium notice."