NY State Senate Bill 2013-S3548

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to insurance
Feb 05, 2013	referred to insurance

2013-S3548 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §2118, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6552
2015-2016: S2347

2013-S3548 (ACTIVE) - 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.

2013-S3548 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3548

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 twenty-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.

Section 3 of the bill provides for an effective date.

EXISTING LAW: Current law grants the Superintendent discretion to  waive
the diligent effort, but in limited circumstances

Expanding  the  authority  of  the  Superintendent to waive the diligent
effort will confer a  degree  of  commercial  flexibility  required  for
excess line brokers to meet New York insurance consumers' coverage needs
in  an efficient manner. This bill amends the insurance law to remediate
redundancies that add expenses and unnecessary delay to the  procurement
of insurance from the excess line market.

JUSTIFICATION:  The  excess  line  market is an important segment of New
York's insurance marketplace The excess line market provides a source of
additional insurance capacity and an avenue for coverage  in  situations
involving  hard-to-place  risks  that the licensed market cannot or will
not write. This bill  seeks  to  modernize  the  excess  line  law  with
tailored  reforms aimed at ameliorating the burdens and costs of certain
reporting requirements that are currently an unnecessary element of  New
York's  regulatory  compliance  regime,  but  in a manner that preserves
consumer protections extant in the insurance law

LEGISLATIVE. HISTORY: S.6552 of 2012.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately, with provisions.

2013-S3548 (ACTIVE) - Bill Text download pdf

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

                                  3548

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 5, 2013
                               ___________

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08137-01-3

S. 3548                             2

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
INNOVATION  AND  DEVELOPMENT,  AND  WHERE  PARTICULAR  COVERAGES ARE NOT
REASONABLY AND WIDELY AVAILABLE. THE SUPERINTENDENT MAY  CONDUCT  MARKET
SURVEYS TO DETERMINE MARKET CONDITIONS.  Any such determination shall be
reviewed at least annually by the superintendent.
  (B)  THE  DILIGENT  EFFORT  MADE BY AN EXCESS LINE BROKER OR AFFIRMING
BROKER FOR ANY NEW POLICY WHICH PROVIDES COVERAGE FOR A POLICY  TERM  OF
ONE  YEAR, SHALL BE DEEMED VALID FOR THE FIRST AND SECOND ANNUAL RENEWAL
THEREOF WHEN THE SAME INSURER PROVIDES SUCH RENEWAL COVERAGE.
  S 3. This act shall take effect immediately; provided that the  amend-
ments  to  subsection  (b)  of section 2118 of the insurance law made by
sections one and two of this act shall not affect the expiration of such
subsection and shall be deemed to expire therewith.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S3548

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

Actions

2013-S3548 (ACTIVE) - Details

2013-S3548 (ACTIVE) - Summary

2013-S3548 (ACTIVE) - Sponsor Memo

2013-S3548 (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2013-S3548

Senate Bill S3548

Share this bill

Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Insurance Committee

Actions

2013-S3548 (ACTIVE) - Details

2013-S3548 (ACTIVE) - Summary

2013-S3548 (ACTIVE) - Sponsor Memo

2013-S3548 (ACTIVE) - Bill Text download pdf

Comments