Bill Text: NY A05241 | 2021-2022 | General Assembly | Amended

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Bill Title: Simplifies the excess line insurance placement affidavit requirements.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-01-05 - referred to insurance [A05241 Detail]

Download: New_York-2021-A05241-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5241--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 12, 2021
                                       ___________

        Introduced  by  M. of A. HUNTER, CYMBROWITZ -- read once and referred to
          the Committee on Insurance  --  committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN ACT to amend the insurance law, in relation to simplifying the excess
          line insurance placement affidavit requirements

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subparagraph (A)  of  paragraph  3  of  subsection  (b)  of
     2  section 2118 of the insurance law, as amended by section 12 of part I of
     3  chapter 61 of the laws of 2011, is amended to read as follows:
     4    (A) Except as provided in subparagraph (F) and subject to subparagraph
     5  (C)  of  this paragraph, submission of insurance documents to the excess
     6  line association shall be accompanied by a statement subscribed to,  and
     7  affirmed  by, the licensee or sublicensee as true under the penalties of
     8  perjury that, after  diligent  effort,  the  full  amount  of  insurance
     9  required  could not be procured, from authorized insurers, each of which
    10  is authorized to write insurance of the kind  requested  and  which  the
    11  licensee has reason to believe might consider writing the type of cover-
    12  age  or class of insurance involved, and further showing that the amount
    13  of insurance procured from an unauthorized insurer is  only  the  excess
    14  over  the  amount  procurable  from an authorized insurer. The licensee,
    15  however, shall be excused from affirming  that  a  diligent  effort,  as
    16  defined above, was made to procure the coverage from authorized insurers
    17  if  the  licensee's affidavit is accompanied by the affidavit of another
    18  broker involved in the placement affirming as true under  the  penalties
    19  of  perjury  that,  after  diligent  effort by the affirming broker, the
    20  required insurance could not be  procured  from  an  authorized  insurer
    21  which  the affirming broker had reason to believe might consider writing
    22  the type of coverage or class of insurance involved.  The  licensee  and
    23  the  affirming  broker  shall  be excused from affirming that a diligent

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03856-04-1
        A. 5241--A                          2

     1  effort was made if the superintendent determines, pursuant to  paragraph
     2  four of this subsection, that no declinations are required.
     3    § 2. Subparagraph (C) of paragraph 3 of subsection (b) of section 2118
     4  of  the insurance law, as amended by chapter 684 of the laws of 1993, is
     5  amended to read as follows:
     6    (C) Every licensee, or affirming broker, in connection with the place-
     7  ment of each risk pursuant to this section not otherwise exempt from the
     8  diligent effort requirement, shall  record  on  the  affidavit  required
     9  pursuant  to  subparagraph  (A)  of this paragraph the name and National
    10  Association of Insurance Commissioners (NAIC) code  of  each  authorized
    11  insurer  declining  a  risk  and information relied upon that formed the
    12  basis of such licensee's or affirming broker's reason  to  believe  that
    13  the  authorized  insurer  might consider writing the type of coverage or
    14  class of insurance involved.  No additional diligent effort  information
    15  shall be reported on the affidavit.
    16    §  3.  This act shall take effect immediately, provided, however, that
    17  the amendments to subparagraphs (A) and (C) of paragraph 3 of subsection
    18  (b) of section 2118 of the insurance law made by sections one and two of
    19  this act shall not affect the expiration of such subsection and shall be
    20  deemed to expire therewith.