senate Bill S6552

2011-2012 Legislative Session

Relates to the duties of excess line brokers in selecting unauthorized insurers

download bill text pdf

Sponsored By

Archive: Last Bill Status -


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 26, 2012 referred to insurance
delivered to assembly
passed senate
Mar 21, 2012 advanced to third reading
Mar 20, 2012 2nd report cal.
Mar 19, 2012 1st report cal.373
Feb 27, 2012 referred to insurance

Co-Sponsors

S6552 - Details

Law Section:
Insurance Law
Laws Affected:
Amd ยง2118, Ins L

S6552 - Summary

Relates to the duties of excess lines brokers in selecting unauthorized insurers where the full amount of insurance required could not be procured from authorized insurers.

S6552 - Sponsor Memo

S6552 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6552

                            I N  S E N A T E

                            February 27, 2012
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to duties of excess  line
  brokers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph (D)  of  paragraph  3  of  subsection  (b)  of
section 2118 of the insurance law, as amended by chapter 684 of the laws
of 1993, is amended to read as follows:
  (D)  (I)  Declinations  obtained  from  authorized  insurers which are
affiliates of, or, as defined in article fifteen of this chapter,  under
common  control  with,  each other or the unauthorized insurer shall not
meet the requirements of this subsection unless  such  related  insurers
operate  as  distinct  and  autonomous  entities,  and  for underwriting
purposes, compete with each other for the same type of coverage or class
of insurance.
  (II) ANY QUOTE FOR COVERAGE FROM AN AUTHORIZED INSURER WHERE THE GROSS
PREMIUM EXCEEDS BY TWENTY-FIVE PERCENT OR MORE, A QUOTE  FOR  COMPARABLE
COVERAGE  ACQUIRED BY AN EXCESS LINE BROKER MAY BE SUBMITTED AS A DECLI-
NATION BY THE EXCESS LINE BROKER OR AFFIRMING BROKER.
  S 2. Paragraph 4 of subsection (b) of section 2118  of  the  insurance
law,  as  amended by chapter 630 of the laws of 1988, is amended to read
as follows:
  (4) (A) The number of declinations  constituting  diligent  effort  in
regard to placement of coverage with authorized insurers for purposes of
paragraph  three  of  this  subsection shall be three, unless the super-
intendent after a hearing, on a record, upon findings  and  conclusions,
determines  that  another  number of such declinations is appropriate in
regard to particular  coverages.  In  making  such  determinations,  the
superintendent  shall  consider  relevant  market  conditions, including
[unavailability of particular coverages from  authorized  insurers,  and
may  conduct  market  surveys] WHAT IS IN THE BEST INTERESTS OF INSUREDS
SEEKING INSURANCE, THE NECESSITY FOR MANUSCRIPTED POLICIES WHERE  STAND-
ARD  FORMS  ARE  INADEQUATE  OR UNAVAILABLE, FOSTERING INSURANCE PRODUCT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

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