Bill Text: NY A05241 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5241 2021-2022 Regular Sessions IN ASSEMBLY February 12, 2021 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to permitting certain insurance coverage to be placed by licensed excess line broker with unauthorized insurers without regard to the diligent effort require- ment and 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03856-01-1A. 5241 2 1 the affirming broker shall be excused from affirming that a diligent 2 effort was made if the superintendent determines, pursuant to paragraph 3 four of this subsection, that no declinations are required. Notwith- 4 standing anything to the contrary contained in this chapter, where a 5 retail insurance broker seeks to procure or place commercial lines 6 insurance through an unaffiliated wholesale excess line insurance 7 broker, both the retail insurance broker and the wholesale excess line 8 insurance broker shall be excused from making any diligent effort other- 9 wise required by this article. 10 § 2. Subparagraph (C) of paragraph 3 of subsection (b) of section 2118 11 of the insurance law, as amended by chapter 684 of the laws of 1993, is 12 amended to read as follows: 13 (C) Every licensee, or affirming broker, in connection with the place- 14 ment of each risk pursuant to this section not otherwise exempt from the 15 diligent effort requirement, shall record on the affidavit required 16 pursuant to subparagraph (A) of this paragraph the name and National 17 Association of Insurance Commissioners (NAIC) code of each authorized 18 insurer declining a risk and information relied upon that formed the 19 basis of such licensee's or affirming broker's reason to believe that 20 the authorized insurer might consider writing the type of coverage or 21 class of insurance involved. No additional diligent effort information 22 shall be reported on the affidavit. 23 § 3. Section 2118 of the insurance law is amended by adding a new 24 subsection (g) to read as follows: 25 (g) (1) For the purposes of this section: 26 (A) a "retail insurance broker" means an insurance broker licensee who 27 directly deals with an insured; 28 (B) a "wholesale excess line insurance broker" means the licensed 29 excess line insurance broker from whom or through whom the retail insur- 30 ance broker has procured excess line coverage on behalf of the insured; 31 and 32 (C) "commercial lines insurance" means any policy of insurance not 33 defined as a "covered policy" in subsection (a) of section three thou- 34 sand four hundred twenty-five of this chapter. 35 (2) A retail insurance broker and a wholesale excess line insurance 36 broke are unaffiliated if one does not control, is not controlled by, or 37 is not under common control with the other. One has control over the 38 other if the broker directly or indirectly or acting through one or more 39 other persons owns, controls, or has the power to vote twenty-five 40 percent or more of any class of voting securities of the other; or 41 controls in any manner the election of a majority of the directors or 42 trustees of the other. 43 § 4. This act shall take effect immediately, provided, however, that 44 the amendments to subparagraphs (A) and (C) of paragraph 3 of subsection 45 (b) of section 2118 of the insurance law made by sections one and two of 46 this act shall not affect the expiration of such subsection and shall be 47 deemed to expire therewith.
