§ 49-b. Diseases which are accidents.— Nothing in this article shall affect the rights of an employee to recover compensation in respect to a disease to which this article does not apply if the disease is an accidental personal injury within the meaning of subdivision seven of section three of this chapter.

ARTICLE 3

SECURITY FOR COMPENSATION

Section 50. Security for payment of compensation.

51. Posting of notice regarding compensation.
52. Effect of failure to secure compensation.
53. Release from all liability.

54. The insurance contract.

§ 50. Security for payment of compensation.- An employer shall secure compensation to his employees in one of the following ways:

1. By insuring and keeping insured the payment of such compensation in the state fund, or

2. By insuring and keeping insured the payment of such compensation with any stock corporation or mutual association authorized to transact the business of workmen's compensation insurance in this state. If insurance be so effected in such a corporation or mutual association the employer shall forthwith file with the commission, in form prescribed by it, a notice specifying the name of such insurance corporation or mutual association 1and such information regarding the policies as the commission may require. [Subd. 2 am'd by L. 1916, ch. 622.]

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1 Words "and such information regarding the policies as the commission may require" substituted for words together with a copy of the contract or policy of insurance," by L. 1916, ch. 622.

Mutual employers' liability and workmen's compensation corporations are governed by the insurance law, §§ 185-194, as added by L. 1913, ch. 832, and amended by L. 1915, ch. 506, and L 1917, ch. 264, and § 67, as added by L. 1914, ch. 16.

3. By furnishing satisfactory proof to the commission of his financial ability to pay such compensation for himself, in which case the commission may, in its discretion, require the deposit with the commission of securities of the kind prescribed in section thirteen of the insurance law, in an amount to be determined by the commission, to secure his liability to pay the compensation provided in this chapter. The commission may also require an agreement on the part of an employer to pay any awards commuted under section twenty-seven of this act, into the special fund of the state fund, as a condition of his being allowed to remain uninsured pursuant to this section. 2The commission shall have the authority to revoke its consent furnished under this section at any time for good cause shown. [Subd. 3 am'd by L. 1916, ch. 622; and L. 1917, ch. 705.]

1 Following sentence inserted by L. 1917, ch. 705. 2 Following sentence added by L. 1916, ch. 622.

In revoking an order of the Commission cancelling a self-insurer's privilege under this subdivision, the Appellate Division has interpreted the phrase "for good cause shown": State Industrial Comm. v. Yonkers R. R. Co., No. 2, 186 App. Div. 192; compare New York Central R. R. v. White, 243 U. S. 188 (Special Bulletin, No. 87, pp. 21, 22).

The Commission's plan of security deposits for safeguarding compensation by self-insurers is set forth under the title "Rules for Self-Insurers" in its annual report for 1919.

4. If a county, by adopting the taxation system provided in this chapter. [Subd. 4 added by L. 1919, ch. 458.]

"Provided in this chapter," see 35.

If an employer fail to comply with this section, he shall be liable to a penalty1 during which such failure continues of 2an amount equal to the pro rata premium which would have been payable for insurance in the state fund for such period of noncompliance to be recovered in an action brought by the commission. [Paragraph am'd by L. 1914, ch. 316.]

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1 Words for every day" stricken out by L. 1914, ch. 316. 2 Words an amount of non-compliance substituted for words one dollar for every employee," by L. 1914, ch. 316.

The commission may, in its discretion, for good cause shown, remit any such penalty, provided the employer in default secure compensation as provided in this section.

Relative to failure to secure compensation, §§ 11, 50 and 52 should be read together.

§ 51. Posting of notice regarding compensation.- Every employer who has complied with section fifty of this chapter shall post and maintain in a conspicuous place or places in and about his place or places of business typewritten or printed notices in form prescribed by the commission, stating the fact that he has complied with all the rules and regulations of the commission and that he has secured the payment of compensation to his employees and their dependents in accordance with the provisions of this chapter.

§ 52. Effect of failure to secure compensation.- Failure to secure the payment of compensation shall 1constitute a misdemeanor and have the effect of enabling the injured employee, or 2in case of death, his dependents or legal representatives, to maintain an action for damages in the courts, as prescribed by section eleven of this chapter. [As am'd by L. 1916, ch. 622.]

1 Words 66

constitute a misdemeanor and," inserted by L. 1916, ch. 622.

2 Words" in case of death," inserted by L. 1916, ch. 622.

3 Words "or legal representatives," inserted by L. 1916, ch. 622.

Relative to failure to secure compensation, §§ 11, 50 and 52 should be read together; relative to words " dependents or legal representatives " compare note to § 11.

§ 53. Release from all liability. An employer securing the payment of compensation by contributing premiums to the state fund shall thereby become relieved from all liability for personal injuries or death sustained by his employees, and the persons entitled to compensation under this chapter shall have recourse therefor only to the state fund and not to the employer. An employer shall not otherwise be relieved from the liability for compensation prescribed by this chapter except by the payment thereof by himself or his insurance carrier.

Compare 11. Release from all liability has been upheld by the Court of Appeals in Shanahan v. Monarch Engineering Co., 219 N. Y. 469.

§ 54. The insurance contract.-1. Right of recourse to the insurance carrier. Every policy of insurance covering the liability of the employer for compensation issued by a stock company or by a mutual association authorized to transact workmen's compensation insurance in this state shall contain a provision setting forth the right of the commission to enforce in the name of the people of the state of New York for the benefit of the person entitled

to the compensation insured by the policy either by filing a separate application or by making the insurance carrier a party to the original application, the liability of the insurance carrier in whole or in part for the payment of such compensation; provided, however, that payment in whole or in part of such compensation by either the employer or the insurance carrier shall to the extent thereof be a bar to the recovery against the other of the amount so paid.

2. Knowledge and jurisdiction of the employer extended to cover the insurance carrier. Every such policy shall contain a provision that, as between the employee and the insurance carrier, the notice to or knowledge of the occurrence of the injury on the part of the employer shall be deemed notice or knowledge, as the case may be, on the part of the insurance carrier; that jurisdiction of the employer shall, for the purpose of this chapter, be jurisdiction of the insurance carrier and that the insurance carrier shall in all things be bound by and subject to the orders, findings, decisions or awards rendered against the employer for the payment of compensation under the provisions of this chapter.

3. Insolvency of employer does not release the insurance carrier. Every such policy shall contain a provision to the effect that the insolvency or bankruptcy of the employer shall not relieve the insurance carrier from the payment of compensation for injuries or death sustained by an employee during the life of such policy.

4. Limitation of indemnity agreements. Every contract or agreement of an employer the purpose of which is to indemnify him from loss or damage on account of the injury of an employee by accidental means, or on account of the negligence of such employer or his officer, agent or servant, shall be absolutely void unless it shall also cover liability for the payment of the compensation provided for by this chapter.

5. Cancellation of insurance contracts. No contract of insurance issued by 1an insurance carrier against liability arising under this chapter shall be cancelled within the time limited in such contract for its expiration until at least ten days after 2a notice of 3cancellation of such contract, on a date specified in such notice, shall be filed in the office of the commission and also served on the employer. Such notice shall be served on the employer by delivering it to him or by sending it by mail, by registered letter, addressed to the employer at his or its last known place of residence; provided that, if the employer be a partnership, then such notice may be so given to any one of the partners, and if the employer be a corporation then the notice may be given to any agent or officer of the corporation upon whom legal process may be served. Provided, however, the right to cancellation of a policy of insurance in the state fund shall be exercised only for nonpayment of premiums. [Subd. 5 am'd by L. 1916, ch. 622.]

1 Words 66 an insurance carrier" substituted for words "a stock company or mutual association," by L. 1916, ch. 622.

2 Word "a," inserted by L. 1916, ch. 622.

Words "cancellation of " substituted for words "intention to cancel," by L. 1916, ch. 622.

4 Following sentence added by L. 1916, ch. 622.

Opinions and decisions relative to insurance contracts are presented in Special Bulletins, No. 81, pp. 356-–363, No. 95, pp. 226–241, and No. 98, pp. 67–69.

The Commission has full jurisdiction of disputes between employer and insurer; §§ 54, 20 and 23 are to be read together: Skoczlois v. Vinocur, 7 S. D. R. 443; 176 App. Div. 924; 221 N. Y. 276; Bloom v. Tilin & Bleek, 5 S. D. R. 441; Opinion of Attorney-General, Aug, 16, 1915.

The Commission's regulation of payment by carriers in extra-territorial cases is illustrated in Jenkins v. Hogan & Sons, 9 S. D. R. 380; 177 App. Div. 36; Gilbert v. Des Lauriers' Column Mould Co., 180 App. Div. 59; and Beaudet v. Mertz Sons, Case No. 4047; 181 App. Div. 963;- N. Y.—, May 28, 1918.

Identification and responsibility of the insurance carrier may become matters for contest when an employee received two or more accidents in succession: Phillips v. Holmes Express Co., Case Nos. 105274 and 326068; 190 App. Div. 336; 229 N. Y. Rep. May 4, 1920; Herald v. Cohen & Symanski, Claim No. 26892; 186 App. Div. 933; Campbell v. Y. M. C. A. of Brooklyn, Case No. 226726, 190 App. Div. 889; Deery v. Piercy Contracting Co., Case No. 226998; 190 App. Div. 886.

Upon appeal from the Commission, the courts will not determine the respective obligations of two or more insurance carriers: Hargraves v. Shevlin Mfg. Co., 10 S D. R. 641; 179 App. Div. 477; 222 N. Y. 646; Connolly v. Tucker Electrical Construction Co., Case No. 9217, 14 S. D. R. 716, 3 Bul. 119; 184 App Div. 921. Notice of cancellation of a policy by registered letter is effective upon posting of the letter: Skoczlois v. Vinocour, 221 N. Y. 276; the ten days begins to run from the date of mailing: Newman v. Singer, 12 S. D. R. 579, 2 Bul. 106; the ten days' requirement does not apply when cancellation has been effected upon the employer's request, etc.: Coopersmith v. Silverstein & Wallin, 14 S. D. R. 613, 3 Bul. 11.

The conditions and relations of cancellation of state fund policies under this subdivision and withdrawal from the state fund under § 100 are interpreted in Schwartz et al. v. Window Cleaning Cos., 5 Bul. 107; see Special Bulletin, No. 98, p. 66.

Relative to liability under a deposit premium plan, see Lemmo v. Hayes Construction Co., 20 S. D. R. 404.

The question of effective transfer of policies is involved in Kolb v. Brummer, 185 App. Div. 835; 226 N. Y. Rep. 570; Hargraves v. Shevlin Mfg. Co., 10 S. D. R. 641; 179 App. Div. 477; 222 N. Y. 646; Nolan v. Shevlin Mfg. Co., 15 S. D. R. 640, 3 Bul. 155; Aprea v. David & Co., 16 S. D. R. 489, 3 Bul. 195; and Mark v. Berman, 14 S. D. R. 599, 2 Bul. 256.

The question of broker's binders has figured in the Hargraves and Mark cases and in O'Shaughnessy v. Empire Construction Co., 16 S. D. R. 467; 186 App. Div. 927; and the question of acceptance of risk, in Levine v. Fox, 16 S. D. R. 503, 3 Bul. 197.

Cases illustrating the question of limitation of policies to localities are: Schweizer v. Schreiner, 9 S. D. R. 337; 178 App. Div. 945; Connolly v. Tucker Electrical Construction Co., Case No. 9217;-App. Div. —; 14 S. D. R. 716, 3 Bul. 119; 184 App. Div. 921; and O'Shaughnessy v. Empire Construction Co., 16 S. D. R. 467; 186 App Div. 927; compare also, Hungerford v. Bonn, 14 S. D. R. 720, 3 Bul. 121; 183 App. Div. 818; Aprea v. David & Co., 16 S. D. R. 489, 3 Bul. 195; and Fagnani and Finley v. Empire Construction Co., 16 S. D. R. 464, 17 S. D. R. 607; 186 App. Div. 926, 927.

Other insurance contract cases are: Clemens v. Clemens & Crell, 180 App. Div. 92; Sayers v. Bill, Bell & Co., Claim No. 17931; 8 S. D. R. 393; 176 App. Div. 938; 181 App. Div. 907; 184 App. Div. 922; Herald v. Cohen & Symarski, Claim No. 26892; 186 App. Div. 933; and Camardi v. Snare & Trieste Co., 4 Bul. 29.

6. Any insurance carrier may issue policies, including with employees, employers who perform labor incidental to their occupations, such policies insuring to such employers the same compensations provided for their employees, and at the same rates; provided, however, that the estimation of their wage values, respectively, shall be reasonable and separately stated in and added to the valuation of their pay rolls upon which their premium is computed. The employer so insured shall have the same rights and remedies given an employee by this chapter. [Subd. 6 added by L. 1916, ch. 622.]