The Office of General Counsel issued the following opinion on July 26, 2004, representing the position of the New York State Insurance Department.

Re: Workers' Compensation & Application of N.Y. Ins. § 3426

Question Presented:

When a New York licensed insurance consultant submits a written request, along with a letter of authority from his client, for workers' compensation loss information to the New York authorized insurer that provides workers’ compensation coverage to the client, does N.Y. Ins. Law § 3426(g)(2) (McKinney Supp. 2004) require the insurer to comply with the request?

Conclusion:

No. N.Y. Ins. Law § 3426(g)(2) (McKinney Supp. 2004) does not require the insurer to comply with the request for workers’ compensation loss information because § 3426(g)(2) does not apply to policies that provide workers' compensation coverage.

Facts:

A New York licensed insurance consultant frequently obtains workers' compensation loss information by submitting a written request, along with a letter of authority from his client, for such information to the New York authorized insurer that provides workers' compensation coverage to the client.

Analysis:

Under certain commercial lines policies, a first-named insured or such insured's authorized agent or broker may request loss information from an insurer pursuant to N.Y. Ins. Law § 3426(g)(2) (McKinney Supp. 2004), which provides:

(2) Upon written request by the first-named insured or such insured's authorized agent or broker, the insurer shall mail or deliver the following loss information covering a period of years specified by the superintendent by regulation or the period of time coverage has been provided by the insurer, whichever is less, within twenty days of such request:

(A) Information on closed claims, including date and description of occurrence, and any payments;

(B) Information on open claims, including date and description of occurrence, and amounts of any payments; and

(C) Information on notice of any occurrences, including date and description of occurrence.

Nevertheless, § 3426(g)(2) does not apply to policies that provide workers' compensation coverage because N.Y. Ins. Law § 3426(l)(2) (McKinney Supp. 2004) states that § 3426 "shall not apply to . . . policies providing workers' compensation . . . coverage." Therefore, N.Y. Ins. Law § 3426(g)(2) (McKinney Supp. 2004) does not require the insurer to comply with the request for workers' compensation loss information because 3426(g)(2) does not apply to policies that provide workers' compensation coverage.

Please note that there are no Insurance Law statutes or regulations that address the release of workers' compensation loss information pursuant to a written request or authorization letter.

For further information you may contact Senior Attorney Kristian Earl Lynch at the New York City Office.