Assembly Bill A5253

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

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Current Bill Status - In Assembly 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-A5253 (ACTIVE) - Details

See Senate Version of this Bill:
S5896
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2118, Ins L
Versions Introduced in 2021-2022 Legislative Session:
A9117, S8128

2023-A5253 (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-A5253 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5253
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred 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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