New York State seal

January 26, 1982

SUBJECT: INSURANCE

WITHDRAWN

(eff. 12/4/04

DATED: January 26, 1982

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

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 asterick**) 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/