§ 93 — Collection of premium in case of default

§ 93. Collection of premium in case of default. a. If a policyholder\nshall default in any payment required to be made by him to the state\ninsurance fund after due notice, his insurance in the state fund may be\ncancelled and the amount due from him shall be collected by civil action\nbrought against him in any county wherein the state insurance fund\nmaintains an office in the name of the commissioners of the state\ninsurance fund and the same when collected, shall be paid into the state\ninsurance fund, and such policyholder's compliance with the provisions\nof this chapter requiring payments to be made to the state insurance\nfund shall date from the time of the payment of said money to the state\ninsurance fund.\n b. An employer, whose policy of insurance has been cancelled by the\nstate insurance fund for non-payment of premium and assessments or\nwithdraws pursuant to section ninety-four of this article, is ineligible\nto contract for a subsequent policy of insurance with the state\ninsurance fund while the billed premium on the cancelled policy remains\nuncollected. However, the state insurance fund shall have discretion to\nissue a new policy to such employer by consenting to a payment plan for\nthe employer to pay off the balance on the prior policy provided that\n(1) any required payroll audit or self-audit has been completed at the\ntime the new policy is issued, (2) the employer's prior payment and\npolicy history meet the state insurance fund's underwriting standards,\n(3) the employer has demonstrated the ability to pay the deposit premium\non the new policy and the first installment of the balance due on the\nprior cancelled policy prior to issuance of the new policy, and (4) the\nemployer has demonstrated the ability to pay the overdue balance from\nthe prior cancelled policy by installments as determined by the state\ninsurance fund together with payments on the new policy within twelve\nmonths from the date the new policy is issued. If an employer is issued\na new policy pursuant to this subdivision, such employer shall be\nrequired to make the final payment on such overdue balance within twelve\nmonths from the date the new policy is issued. If the employer defaults\non payment for either the new policy or the balance due from the prior\ncancelled policy, the employer's new policy is subject to cancellation\nfor non-payment of premium as provided under this chapter. If the new\npolicy issued pursuant to this subdivision is cancelled, the employer\nshall be ineligible for an additional policy until all amounts due from\nall prior cancelled policies have been paid.\n c. The state insurance fund shall not be required to write a policy of\ninsurance for any employer which is owned or controlled or the majority\ninterest of which is owned or controlled, directly or indirectly, by any\nperson who directly or indirectly owns or controls or owned or\ncontrolled at the time of cancellation an employer whose former policy\nof insurance with the state insurance fund was cancelled for non-payment\nof premium and assessments or withdraws pursuant to section ninety-four\nof this article or who is or was at the time of cancellation the\npresident, vice-president, secretary or treasurer of such an employer\nuntil the billed premium on the cancelled policy is paid. The state\ninsurance fund shall have discretion to write a policy to such an\nemployer using the same terms as applicable to writing a policy of\ninsurance to a former policyholder that owes a balance on a prior policy\nas provided under subdivision b of this section.\n For purposes of this subdivision, "person" shall include individuals,\npartnerships, corporations, and other associations.\n