Press  Release

for Service Station Dealers Of

Greater New York - - Safety Group #485

The New York Compensation Insurance Rating

Board has published new manual rates.

·       Manual Rates - The New York State Insurance Department has approved a revision in the manual rates.  The revision, which becomes effective October 1, 2007, represents an average decrease of 18.4%.  The New York State Assessment arge is also decreased from 18.6% to 15.5%, which when combined with the overall average rate charge will result in an average net charge to policy holders of - 20.5%.  Listed below are the classifications most frequently found on Safety Group 485’s policies and the comparison of the rates over the last two years.

 

Code

 

Classification

10/1/2006 Rate

10/1/2007

Rate

% Change

over 10/1/2006

8391

Auto Gasoline Station

5.74

4.67

-18.6%

3821

Auto Dismantling

13.95

15.38

+10.3%

8381

Self Service Gas

3.68

3.16

-14.1%

8810

Clerical

.36

.28

-22.2%

8809

Executive officer

.46

.37

-19.6%
             

 

·          Classification Rates - Although the average manual rate level is decreasing by 18.4%, individual classification rates will change based on the most recently available loss experience.  Both increases and decreases from the current rates have been actuarially calculated as a result of the number and types of claims that are incurred, together with the total dollar values of these claims that have been reported for each class.  This process ensures that each class rate reflects the appropriate level relative to the experience of the other classifications.

 ·          Expenses - Overall carrier expense levels relative to premium and loss adjustment expense relative to incurred losses were both slightly lower than those underlying the previous rates.

·          Catastrophe Provision – This revision contains no change in the rate for Foreign Terrorism, as well as no change in the rate for domestic terrorism, industrial catastrophes and natural disasters.

·          Outstanding Rate Change - The New York State Insurance Department has also approved a decrease of 16.1% to become effective October 1, 2007 on outstanding policies.  The change of 16.1% is the premium savings anticipated from the 2007 Workers' Compensation Reform Legislation applicable to policies with expiration dates between October 1, 2007 and September 30, 2008.  The rate decrease will be applied on a ratio basis, with 16.1% being the maximum.  Your individual percentage savings will be based on the number days that your policy is in force up until October 1, 2008.


 ·          New York State Assessment Charge- Please take note that the assessment charge for Workers' Compensation Policies that will be charged on The New York State Insurance Fund Policies will not be the 15.5% that was announced by the New York State Insurance Department.  The New York State Insurance Fund’s assessment charge will be 6.6%.  The reason for the difference is that The New York State Insurance Fund will not be charging the portion of the assessment that covers the Special Disability Fund (Second Injury Fund).  This is a tremendous advantage for New York State Insurance Fund policy holders.

 

What you Should Know Before You Join a Self-Insured Trust

 

          Article 4, Section 50 (3a) and part 317 I Title 12 NYCRR of the Workers’ Compensation Law permits group self-insurance plans, otherwise known as self-insured consortiums, self-insured trusts, association trusts, or group employer plans.

          Self-insured trusts are regulated by the chairman of the Workers’ Compensation Board (WCB).  New regulations intended to increase the stability of self-insured trusts have been implemented.

          Unlike the Guaranty Fund for private insurance companies, there is no guaranty fund to protect policy holders or claimants if a self-insured trust becomes insolvent, impaired or has other financial difficulty.  The legal burden to pay remains with group trust employers.

          Trust administrators have the right to establish their own rates and are not required to use the New York Compensation Insurance Rating Board’s rating schedule.  NYCIRB Experience Modifications are not maintained for members of trusts, who lose their experience mods upon entering a self-insurance plan.

 

 If you have any questions about how your individual policy will be affected, please contact Joseph Fasciglione at 1-800-247-8008.

 

Breaking News!!

PROPOSED OUTLINE OF THE SHARED NYTEST NETWORK CONCEPT

Below is the DMV’s proposal that was sent to us. We have since met with them and they will revert back to us with changes that were requested.  Please read this over and let us know your opinions on this concept.

On a specific date, the Commissioner’s Regulation (15 NYCRR Part 79) would be modified to effect inspection stations in the NYMA. 

  • Licensed facilities meeting some specific geographic and volume parameters would be given the choice to continue to either maintain/operate their NYTEST equipment, or sign an agreement with another licensed station to receive and inspect their NYTEST applicable vehicles.
     
  • Those stations that wish to refer their customers to a neighboring NYTEST facility will need to submit a copy of a signed station agreement to DMV Vehicle Safety Services by a specified date.  A portion of the agreement will be standardized to include:
     
    1. Mandatory New York State requirements;
    2. Facility information (owner’s name, DMV facility number, address, phone number, and signature) of the public inspection station (“receiving station”) maintaining the NYTEST equipment;
    3. Facility information (owner’s name, DMV Facility number, address, phone number, and signature) of the inspection station that will be referring inspections (“referring station”); 
    4. The State will set basic parameters, which will be used to determine if a Shared Network agreement signed between a “referring station” and a “receiving station” is practical. The “receiving station” must be located within a reasonable distance to be determined by the state on a county-by-county basis in order to assure there is sufficient equipment available conveniently to the public. 
    5. The agreement must specify the time frame for an inspection to be completed after the referral is made, to accommodate the motorist.

It is anticipated that the “referring” and “receiving stations” will develop other additional terms to their agreement.

  • The NYTEST “receiving station” must continue to conduct inspections according to the DMV Commissioner’s Regulations, including time requirements for accepting vehicles for inspection, issuing appointments for inspections, and the maximum cost of an inspection charged to a vehicle owner.
     
  • Any costs associated with a shared network agreement cannot be passed on to the vehicle owner.
     
  • Those “referring stations” will no longer be allowed to purchase the VS1082 HE (Pin feed) inspection stickers.  Only “receiving stations” will be able to purchase these stickers.
     
  • Facilities that become a “referring station” will be required to surrender any unused VS1082 HE stickers at the time their shared network agreement is approved by the State.  Credit will be given for the value of these stickers.
     
  • The “receiving station” and inspector that actually conducts the NYTEST inspection will be responsible for the inspection.
     
  • A “receiving station” may enter into more than one shared network agreement.  The State, however, will set a maximum limit on the number of inspection stations linked to a receiving NYTEST station.  The limit will be based on the average inspection demand and any local geographic coverage needs.
     
  • A “referring station” may enter into more than one shared network agreement; however, the state will set a maximum limit on the number of agreements to record.
     
  • If for any reason, the “receiving station” can no longer conduct NYTEST inspections, all shared network stations will be subject to an administrative stop for all inspections, including NYVIP inspections.  These stops will remain in effect until the subject NYTEST unit is again operational, or until an affected facility enters into a shared network agreement with a new “receiving station.” There will be no ‘grace period’ while a new agreement is worked out.
     
  • DMV and DEC will not intercede in disputes that develop between facilities that have entered into a shared network agreement.
     
  • It will be permissible for a facility to enter into a shared network agreement with another station for referrals but also keep their NYTEST equipment operational.  (The details of this scenario need to be further defined.)
     
  • The state will reserve the right to limit the number of new inspection stations that may be licensed without an agreement and without NYTEST equipment.
     
  • The DMV Commissioner’s Regulations will require all “referring stations” to post a sign that indicates where vehicles will be taken to receive a NYTEST inspection.  Sign dimensions and wording will be established in DMV regulation.
     
  • It is anticipated that the program will be first come first serve until the minimum number of stations for each county is reached. If more stations want to opt out than the state believes are necessary, the stations to participate will be selected by lottery. The state will reassess the minimum numbers each year. When the state determines fewer NYTEST stations are needed, additional “referring stations” may be added to the shared network by lottery.
     
  • Any facility that wishes to reactivate NYTEST equipment will need to inform DMV and will be required to prove the NYTEST equipment is fully operational.  The form of the proof will be determined by DMV, and the facility will be required to follow prescribed DMV procedures.

 

Based on the information received, DMV will maintain a database to monitor and enforce the shared network. 

Procedures and details of the state requirements will be developed as the concept is further defined.  These requirements will be used as the basis for promulgating necessary regulations in order to implement this concept. 

At the meeting with the DMV, the DEC and other associations, all of us reviewed the proposal that the DMV had distributed.  We made several suggestions where changes should be made so the concept of the shared network would be more beneficial to us.  The DMV is working closely with us to address all the concerns we have.  This process of making sure that the shared network concept will be advantageous to us will take time.  The DMV will make the changes and we will meet again to review those changes.  We would like to hear from you and understand your views on this concept. 
 

 

© 2003 Service Station Dealers of Greater New York,  All Rights Reserved