Stephanie Haber
/ Categories: Various

PFL Hot Topic – Carriers Have to Announce if They Are “in or out” of the DBL/PFL Market

March 21, 2017

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When do carriers have to announce if they will be exiting the DBL (and thereby PFL) market?
The draft regulations are requiring carriers to declare if they will exit the statutory disability market, and thereby paid family leave, no later than July 1 of this year – or within 30 days of PFL rates being released by the state, whichever is sooner – read the details here:  DFS 11 NYCRR 363, Section 363.6 (k) (1)

What does that mean?
Since Paid Family Leave will be implemented as an integral component of New York’s statutory disability insurance (commonly referred to as DBL in the industry), there will no longer be “just DBL alone” without PFL. If a carrier decides not to enter the Paid Family Leave market, this automatically takes this carrier out of the DBL market as well – meaning, an exiting carrier would not be able to continue just DBL coverage for current policyholders while they’re covered for PFL through a different carrier. Both DBL and PFL have to be from the same carrier.  The draft regulations require both coverages to be in one and the same policy, with Paid Family Leave becoming a Rider to the underlying DBL policy.*

How does this impact employers?
It means that policyholders of an exiting carrier will have to find “replacement” coverage with a carrier which remains in the DBL and Paid Family Leave market. In order for employers to stay compliant come 01/01/18 their PFL coverage needs to be in effect by that date.

Why would carriers want to exit?
There could be a variety of reasons, and it would differ from case to case – but generally, implementing a new product of this magnitude – and being able to administer it come 2018 – could be either too big of an operational lift for some or a decision is made that PFL is just not aligned with the strategic direction for others.

What about ShelterPoint?
The day the law was passed last April, ShelterPoint made a commitment to implement Paid Family Leave and to build a smooth transition. ShelterPoint created a dedicated “PFL Team.” Their goal? Ensure a successful implementation for everyone involved — from policyholders and brokers to employees, who ultimately depend on this benefit in their time of need. We have been working diligently since then because we understand that making it simple for our clients is not an easy lift for us. But that’s alright – as the industry leader in DBL, we are ready to become the industry leader for PFL as well. “We’re all in.”

Have any lingering questions? We’re always available to help answer them. Drop us a line at and sign up to stay tuned as new developments emerge about Paid Family Leave.


*More specifics of voluntary PFL coverage are yet to be determined.

This information is based on the current draft regulations and may change with the release of the final regulations. Got more questions? Email us at

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