Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jun 03, 2010 |
advanced to third reading |
Jun 02, 2010 |
2nd report cal. |
Jun 01, 2010 |
1st report cal.683 |
Mar 24, 2010 |
referred to insurance |
Senate Bill S7219
2009-2010 Legislative Session
Sponsored By
(D, WF) 46th Senate District
Archive: Last Bill Status - On Floor Calendar
- 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
Actions
Votes
2009-S7219 (ACTIVE) - Details
- Law Section:
- Insurance Law
- Laws Affected:
- Amd ยง2118, Ins L
2009-S7219 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7219 TITLE OF BILL : An act to amend the insurance law, in relation to 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 Insurance Law Section 2118 to reduce or waive the duty of an excess line broker to conduct a diligent search for an authorized insurer to underwrite a risk in circumstances where an insured is likely to select an excess line insurer from which to obtain coverage. Specifically, Section 1 of the bill amends subsection (b) of 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. Section 1 also relieves an excess line broker's diligent effort obligation to obtain three declinations of coverage from authorized insurers where the insured is sophisticated and meets the definition of an "exempt commercial purchaser." Falling within this category are
2009-S7219 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7219 I N S E N A T E March 24, 2010 ___________ 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 excess line brokers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraphs 3 and 4 of subsection (b) of section 2118 of the insurance law, paragraph 3 as amended by chapter 684 of the laws of 1993, subparagraph (A) of paragraph 3 as amended by chapter 498 of the laws of 1996, and paragraph 4 as amended by chapter 630 of the laws of 1988, are amended to read as follows: (3) (A) The submission of insurance documents to the excess line asso- ciation 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 affirming that a diligent effort was made (I) FOR TRANSACTIONS DEFINED IN SUBPARAGRAPH (F) OF THIS PARAGRAPH, OR (II) if the superintendent determines, pursuant to paragraph four of this subsection, that no declinations are required. (B) A licensee or affirming broker shall be considered to have the reason to believe required by subparagraph (A) of this paragraph if the EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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