NY State Senate Bill S8127

Archive: Last Bill Status - Signed by Governor

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

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Actions

view actions (14)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 30, 2022	approval memo.110 signed chap.833
Dec 19, 2022	delivered to governor
May 09, 2022	returned to senate passed assembly ordered to third reading cal.622 substituted for a9088
Mar 23, 2022	referred to insurance delivered to assembly passed senate
Feb 16, 2022	advanced to third reading
Feb 15, 2022	2nd report cal.
Feb 14, 2022	1st report cal.490
Jan 25, 2022	referred to insurance

Votes

view votes

Mar 23, 2022 - floor Vote

S8127

floor

Aye

Nay

Absent

Excused

Abstained

Feb 14, 2022 - Insurance committee Vote

S8127

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

S8127 (ACTIVE) - Details

See Assembly Version of this Bill:: A9088
Law Section:: Insurance Law
Laws Affected:: Amd §2118, Ins L

S8127 (ACTIVE) - Summary

Simplifies the excess line insurance placement affidavit requirements.

S8127 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8127

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to simplifying the excess
line insurance placement affidavit requirements

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would streamline the excess line affidavit regarding
declinations that are filed by both retail and wholesale insurance
brokers when placing excess line transactions. The bill would reduce
excessive reporting requirements that provide no benefit to insureds and
allow brokers to focus on providing services that consumers need and
value.

 
SUMMARY OF PROVISIONS:

Section one - Amends 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, to simplify excess line insurance placement affidavit

requirements.

Section two - establishes the effective date.

 
JUSTIFICATION:

The excess line market exists as a matter of public policy to insure
risks which New York admitted insurers choose not to underwrite because
the risks are distressed, unique, volatile, or involve new businesses or
coverages without loss history. The legislature reasoned that New York
businesses could not operate without a secondary market to insure risks
that are rejected by licensed insurers. The excess line market is of
vital importance to New York and nimble processing is essential to
effectively serve consumer needs.

The bill would reduce the number of data elements that a broker is
required to collect and report for each of three declining licensed
insurers from seven to three. The insurer name, NAIC number and the
reason the broker believed the licensed insurer would consider under-
writing the risk would still be recorded in an affidavit. The name of
the insurer representative who declined the risk and their affiliation
with the insurer, and the date and reason the risk was declined would no
longer be recorded in the affidavit. Insurance brokers would still be
required to file insurance coverage documents and affidavits with the
Excess Line Association of New York (ELANY).

The current affidavit forms are unduly complex, burdensome and time-con-
suming to complete. As a result, mistakes are frequently made and time
spent correcting the affidavits results in unnecessary delays to the
detriment of consumers. Many submissions to insurers are made through
web portals which generate either an electronic quote or a declination
to insure the risk. A web portal declination does not contain the name
of an individual or their affiliation (company employee, agent, other).
The current affidavit requires this information, placing brokers in an
untenable situation.


Fewer than 20% of New York-licensed retail brokers place excess line
business through wholesale brokers, averaging twenty-five annual trans-
actions each. Of those retail brokers, 70% place less than 10 trans-
actions with wholesale excess line brokers. This is a powerful indicator
that retailers only go to wholesalers when the retailers' licensed
markets refuse to insure a risk and that most retail brokers have little
experience in completing the excess line placement affidavit.

New York is among a minority of states that require the filing of decli-
nation information for each policy and the only state that requires
twenty-one elements in total for three separate declinations. An excess
line broker that is required to file declinations and also allocate tax
liability for non-U.S. risk exposures must currently submit seventy-one
affidavit data elements. The bill would reduce declination data elements
from twenty-one to nine.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

S8127 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8127
 
                             I N  S E N A T E
 
                             January 25, 2022
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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 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  (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 NOT OTHERWISE EXEMPT FROM THE
 DILIGENT  EFFORT REQUIREMENT, shall record  on  the  affidavit  required
 pursuant  to  subparagraph (A) of this paragraph the NAME  AND  NATIONAL
 ASSOCIATION  OF INSURANCE COMMISSIONERS CODE OF EACH AUTHORIZED  INSURER
 DECLINING  A  RISK  AND information relied upon that formed the basis of
 such licensee's or affirming broker's reason to believe that the author-
 ized insurer might consider writing the type of  coverage  or  class  of
 insurance  involved.  NO ADDITIONAL DILIGENT EFFORT INFORMATION SHALL BE
 REPORTED ON THE AFFIDAVIT.
   § 2. This act shall take effect immediately, provided,  however,  that
 the  amendments  to subparagraph (C) of paragraph 3 of subsection (b) of
 section 2118 of the insurance law made by section one of this act  shall
 not  affect  the  expiration  of  such subsection and shall be deemed to
 expire therewith.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14285-01-2

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The New York State Senate

senate Bill S8127

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Mar 23, 2022 - floor Vote

Floor Vote: Mar 23, 2022

Feb 14, 2022 - Insurance committee Vote

Insurance Committee Vote: Feb 14, 2022

S8127 (ACTIVE) - Details

S8127 (ACTIVE) - Summary

S8127 (ACTIVE) - Sponsor Memo

S8127 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S8127

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Mar 23, 2022 - floor Vote

Floor Vote: Mar 23, 2022

Feb 14, 2022 - Insurance committee Vote

Insurance Committee Vote: Feb 14, 2022

S8127 (ACTIVE) - Details

S8127 (ACTIVE) - Summary

S8127 (ACTIVE) - Sponsor Memo

S8127 (ACTIVE) - Bill Text download pdf

Comments