|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Mar 26, 2012||referred to insurance|
delivered to assembly
|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|
senate Bill S6552
Archive: Last Bill Status -
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S6552 - Details
- Law Section:
- Insurance Law
- Laws Affected:
- Amd §2118, Ins L
S6552 - Sponsor Memo
BILL NUMBER:S6552 TITLE OF BILL: An act to amend the insurance law, in relation to duties of excess line brokers PURPOSE: To modernize certain aspects of New York's Insurance Law pertaining to the placement of risks in the excess line market. SUMMARY OF PROVISIONS: This bill amends section 2118 of the insurance law to recognize that where a quote for coverage from an authorized insurer exceeds by twen- ty-five percent or more a quote for comparable coverage from the excess line market, the licensed insurer quote may be regarded as a declination from the authorized insurer. The bill further expands the authority of the Superintendent of Insur- ance to waive the diligent effort requirement and declare certain cover- ages eligible for export to the excess line market based upon the best interests of the insureds seeking coverage. Finally, the bill also relieves an excess line broker's diligent effort obligation in the circumstances in which the diligent effort standard would not apply is where a policy is renewed with the same insurer for a second or third consecutive one year term.
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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