S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    157
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  M. of A. CAHILL, STECK, HEVESI, GARBARINO, QUART, HUNTER
   -- read once and referred to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to excess  line  coverage
   for certain medical malpractice insurance

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (e) of section 2118 of  the  insurance  law,  as
 added  by chapter 684 of the laws of 1993, subparagraph (A) of paragraph
 2 as amended by chapter 587 of the laws of  2002,  subparagraph  (C)  of
 paragraph 2 as amended by chapter 498 of the laws of 1996, is amended to
 read as follows:
   (e)(1)  Except  as  provided  in  paragraph two of this subsection, no
 licensee shall be required to obtain a declination from  an  association
 established  pursuant  to article fifty-four or fifty-five of this chap-
 ter, or to apply for insurance through a plan  established  pursuant  to
 article  fifty-three of this chapter, as a condition of procuring insur-
 ance pursuant to this section.
   (2) (A) Unless the licensee obtains a declination from the appropriate
 association, or from an insurer pursuant to an application for  coverage
 through a plan, no diligent effort shall be considered to have been made
 if the insurance is available from the plan or association in connection
 with the placement of:
   (i) a policy of non-commercial motor vehicle liability insurance; OR
   (ii) [medical malpractice insurance for a general hospital, as defined
 in  subdivision  ten  of  section  two thousand eight hundred one of the
 public health law, a physician or dentist; or
   (iii)] insurance which by law must be provided by an authorized insur-
 er.
   (B) In connection with the placement of any other kind of insurance, a
 declination from the appropriate association, or from an insurer  pursu-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00091-01-9

 A. 157                              2
 
 ant  to  an  application  for coverage through a plan, shall be required
 unless prior to the placement the insured has been advised of the avail-
 ability of insurance from the plan or association.
   (C)  The  affirming broker shall provide written notice to the insured
 that the placement was made with an unauthorized insurer. A copy of this
 notice shall be attached to the affirming broker's affidavit. The  affi-
 davits  required by this section to be completed by the affirming broker
 shall include a statement that the affirming broker advised the  insured
 in writing:
   (i)  that  the  unauthorized  insurer with which the coverage is being
 placed is not authorized to do an insurance business in this  state  and
 is not subject to supervision by this state;
   (ii)  that in the event of the insolvency of the unauthorized insurer,
 losses will not be covered by any New York state insolvency fund;
   (iii) that the policy may not be subject to all of the regulations  of
 the superintendent pertaining to policy forms; and
   (iv)  such other information as the superintendent may, by regulation,
 require.
   § 2. This act shall take effect immediately.