senate Bill S7551

2013-2014 Legislative Session

Relates to the duties of excess line brokers

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Sponsored By

Archive: Last Bill Status - In Senate Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 15, 2014 referred to insurance

S7551 - Details

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

S7551 - Summary

Specifies requirements for licensees to have exercised due care in selecting unauthorized insurers.

S7551 - Sponsor Memo

S7551 - Bill Text download pdf

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

                                  7551

                            I N  S E N A T E

                              May 15, 2014
                               ___________

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 the 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. Paragraph 1 of subsection (a) of section 2118 of the insur-
ance law, as amended by chapter 220 of the laws of 1986, is  amended  to
read as follows:
  (1)  (A)  Every licensee licensed pursuant to section two thousand one
hundred five of this article shall  be  required  to  use  due  care  in
selecting the unauthorized insurer from whom policies are procured under
his license.
  (B)  A LICENSEE IS PRESUMED TO HAVE EXERCISED DUE CARE IN SELECTING AN
UNAUTHORIZED INSURER IF AT THE TIME OF PLACEMENT, THE EXCESS LINE  ASSO-
CIATION  ESTABLISHED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIRTY
OF THIS ARTICLE HAS PUBLISHED THE NAME OF SUCH  INSURER  ON  A  LIST  OF
ELIGIBLE UNAUTHORIZED INSURERS. THE EXCESS LINE ASSOCIATION WILL LIST NO
INSURER  UNLESS  IT HAS CONDUCTED AN ANALYSIS OF SUCH INSURER UPDATED NO
LESS THAN ANNUALLY AND DETERMINED SUCH INSURER,
  (I) IS FINANCIALLY SOLVENT AND STABLE;
  (II) MAINTAINS ADEQUATE CAPACITY AND POLICYHOLDER'S  SURPLUS  TO  MEET
ITS OBLIGATIONS TO POLICYHOLDERS, AND ALL OTHER LIABILITIES;
  (III) IS MANAGED BY INDIVIDUALS WHO ARE TRUSTWORTHY AND COMPETENT; AND
  (IV) MAINTAINS CLAIMS PRACTICES IN A SATISFACTORY MANNER.
  S 2. Subparagraph (C) 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:
  (C) Every licensee, or affirming broker, in connection with the place-
ment of each risk pursuant to this section, shall record on the  affida-
vit  required pursuant to subparagraph (A) of this paragraph [the infor-
mation]  THE  NAME  OF  THE  INSURER  DECLINING   SUCH   RISK   AND   AN
IDENTIFICATION  NUMBER  FOR  SUCH INSURER ISSUED BY THE NATIONAL ASSOCI-
ATION OF INSURANCE COMMISSIONERS OR DEPARTMENT  OF  FINANCIAL  SERVICES.

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

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