January 26, 1982

SUBJECT: INSURANCE

(eff. 12/4/04)

DATED: January 26, 1982

SUPPLEMENT NO. 1 TO CIRCULAR LETTER NO. 16 (1981)

WITHDRAWN

TO: ALL INSURERS AND SELF-INSURERS WRITING AUTOMOBILE INSURANCE IN THIS STATE

RE: Reduction In No-Fault Loss of Earnings Benefits for Qualified Wage Continuation Plans.

Section 671(1) of the Insurance Law contains a provision which requires insurers to reduce gross loss of earnings from work by benefits paid under what has become known as "qualified wage continuation plans" when calculating no-fault first party benefits payable for loss of earnings. In order to provide for consistent application of this provision the Insurance Department has undertaken to review plans submitted and classify them as either "qualified" or "non qualified". Circular Letter No. 16(1981) dated August 20, 1981 contained the results of our initial review.

The following revised lists contain five additional plans (identified with a double asterisk**) which have been subsequently reviewed.

QUALIFIED PLANS

EMPLOYER

COVERED EMPLOYEES & BENEFITS

New York City

* Employees in the uniformed
 

services of Police,
 

Fire, Correction and
 

Sanitation Departments.
       

Village of Mamaroneck

* Police Officers.
       

City of Yonkers

* Police Officers.
       

Manhasset Union Free School

* All professional personnel

 District

including teaching and
 

administrative staff.
       

Greenwich Fixture Co.

* Officers of the company not
 

covered by the union plan.
       

 ** Niagara Mohawk Power Corp.

All employees. Benefits are
 

payable for up to 26 weeks at
 

100% of salary.
       

Depository Trust Co.

Professional, administrative,
 

supervisory employees, Guards
 

and confidential secretaries
 

are entitled full salary for up
 

to 180 days.
       

Stauffer Chemical Co.

All employees. Benefits are pay-
 

able for up to 6 months (3
 

months for employees with less
 

than one year's service) at
 

100% of salary.
       

U.S. Armed Forces

* All members of the Armed Forces.
       

Federal District Court

* Justices only.
       

General Electric Co.

All employees. Benefits are
 

equal to 60% of employee's
 

weekly salary up to a maximum
 

weekly benefit of $ 175 for up
 

to 26 weeks. However, part of
 

this benefit is in satisfaction
 

of N.Y.S. Disability Benefit Law
 

(50% of salary, up to $ 95 per
 

week). Only the excess over
 

N.Y.S. Disability Benefits
 

qualifies as wage continuation
 

benefits. For Example:
   

A

B
 

Weekly Salary

$ 150

$ 300
       
 

G.E. Benefit: 60%

    
 

 with $ 175 Maximum

$ 90

$ 175
 

Less N.Y.S. DBL: 50%

    
 

 with $ 95 Maximum

75

95
       
 

Qualified Wage -

    
 

 Continuation Benefit

$ 15

$ 80
       

 ** Chevrolet, Inc.

All employees represented by the

&

U.A.W. with one year or more of

 ** Ford Motor Co.

service are entitled to
 

benefits for 52 weeks equal to
 

approximately 60% of the
 

employee's weekly salary, as
 

set forth in schedule of
 

benefits as contained in
 

U.A.W. contract. Insurers must
 

calculate the Qualified Wage
 

Continuation benefit in the
 

same manner as shown above for
 

General Electric Co.
       
 

* Unlimited sick leave plans
 

providing full salary for the
 

duration of disability.

NON-QUALIFIED PLANS

  

International Telephone and Telegraph

    

 Corp. (ITT)

Celanese Corp.

  
     

University of New York

Con Edison

  
     

Associate Metals and Minerals Corp.

I.B.M.

  
     

So. Huntington Schools U.F.S.D. # 13

Sperry Rand

  
     

Dobbs Ferry U.F.S.D.

Eastman Kodak

  
     

 ** Bristol Labs a.k.a. Bristol Meyers

 ** New York

  
 

Telephone Company

  

Note: If an employee covered by a non-qualified plan is eligible for New York State Disability Benefits, the insurer is entitled to an offset pursuant to Section 671(2)(b) of the Insurance Law.

Insurers are again requested to submit for approval, to the address shown below, details of any other plans which they believe may qualify. All plans submitted will be reviewed and, periodically, the Department will issue revised lists of qualified and non-qualified wage continuation plans.

Sandra Molina Siegel

Supervising Examiner

New York State Insurance Department

Two World Trade Center

New York, New York 10047

Very truly yours,

[SIGNATURE]

ALBERT B. LEWIS

Superintendent of Insurance

ABL/