S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4597
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2023
                                ___________
 
 Introduced by M. of A. WEPRIN -- 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-
 ant to an application for coverage through a  plan,  shall  be  required
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06681-01-3
              

 A. 4597                             2
 
 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.