assembly Bill A5241

2021-2022 Legislative Session

Relates to permitting certain insurance coverage to be placed by licensed excess line brokers with excess line insurers without regard to the diligent effort requirement

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


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

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Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 12, 2021 referred to insurance

Co-Sponsors

A5241 (ACTIVE) - Details

See Senate Version of this Bill:
S498
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2118, Ins L
Versions Introduced in 2019-2020 Legislative Session:
A8842, S769

A5241 (ACTIVE) - Summary

Relates to permitting certain insurance coverage to be placed by licensed excess line brokers with unauthorized insurers without regard to the diligent effort requirement and simplifying the excess line insurance placement affidavit requirements.

A5241 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5241
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section 1. Subparagraph (A)  of  paragraph  3  of  subsection  (b)  of
 section 2118 of the insurance law, as amended by section 12 of part I of
 chapter 61 of the laws of 2011, is amended to read as follows:
   (A) Except as provided in subparagraph (F) AND SUBJECT TO SUBPARAGRAPH
 (C)  of  this paragraph, submission of insurance documents to the excess
 line association shall be accompanied by a statement subscribed to,  and
 affirmed  by, the licensee or sublicensee as true under the penalties of
 perjury that, after  diligent  effort,  the  full  amount  of  insurance
 required  could not be procured, from authorized insurers, each of which
 is authorized to write insurance of the kind  requested  and  which  the
 licensee has reason to believe might consider writing the type of cover-
 age  or class of insurance involved, and further showing that the amount
 of insurance procured from an unauthorized insurer is  only  the  excess
 over  the  amount  procurable  from an authorized insurer. The licensee,
 however, shall be excused from affirming  that  a  diligent  effort,  as
 defined above, was made to procure the coverage from authorized insurers
 if  the  licensee's affidavit is accompanied by the affidavit of another
 broker involved in the placement affirming as true under  the  penalties
 of  perjury  that,  after  diligent  effort by the affirming broker, the
 required insurance could not be  procured  from  an  authorized  insurer
 which  the affirming broker had reason to believe might consider writing
 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.