Section 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 or

  without 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  covered

  employer, 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.