Senate Bill S5896

2023-2024 Legislative Session

Permits a waiver of the diligent effort requirement in limited circumstances for certain insurance coverage to be placed by licensed excess line brokers with unauthorized insurers

download bill text pdf

Sponsored By

Current 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

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2023-S5896 (ACTIVE) - Details

See Assembly Version of this Bill:
A5253
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2118, Ins L
Versions Introduced in 2021-2022 Legislative Session:
S8128, A9117

2023-S5896 (ACTIVE) - Summary

Permits a waiver of the diligent effort requirement in limited circumstances for certain insurance coverage to be placed by licensed excess line brokers with unauthorized insurers where a retail producing insurance broker seeks to procure or place commercial lines insurance through an unaffiliated wholesale excess line insurance broker.

2023-S5896 (ACTIVE) - Sponsor Memo

2023-S5896 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5896
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 22, 2023
                                ___________
 
 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 permitting a waiver of
   the diligent effort requirement in limited circumstances  for  certain
   insurance  coverage  to be placed by licensed excess line brokers with
   unauthorized insurers
 
   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)  OF  THIS  PARAGRAPH  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 coverage 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 the affirming broker shall  be  excused  from
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05708-01-3
              

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