NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2202
SPONSOR: Hunter TITLE OF BILL:
An act to amend the insurance law, in relation to clarifying the excess
line insurance placement affidavit requirements
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to make amendments to Chapter 833 of the
Laws of 2022 relating to excess line insurance placement affidavit
requirements
SUMMARY OF PROVISIONS:
Sections 1 provides technical amendments to Chapter 833 of the Laws of
2022 and provides that retail and wholesale brokers shall continue to
include on an excess lines affidavit: the date of the declination
Section 2 provides the effective date.
JUSTIFICATION:
The excess line market exists to insure risks which New York admitted
insurers choose not to underwrite because the risks are distressed,
unique, volatile, or involve new businesses or coverages without loss
history. Chapter 833 of the Laws of 2022 provided that retail and whole-
sale insurance brokers shall be required to include on an excess lines
affidavit the following information: the name and national association
of insurance commissioners code of each authorized insurer declining a
risk. This Chapter Amendment provides that retail and wholesale brokers
shall continue to include on an excess lines affidavit: the date of the
declination. This Chapter amendment also provides technical changes to
clarify the intent of the bill.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None noted.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2022 amending the insurance law relating to
simplifying the excess line insurance placement affidavit requirements,
as proposed in legislative bills numbers S.8127 and A.9088, takes
effect.
STATE OF NEW YORK
________________________________________________________________________
2202
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 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 clarifying the excess
line insurance placement affidavit requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (C) of paragraph 3 of subsection (b) of
2 section 2118 of the insurance law, as amended by a chapter of the laws
3 of 2022 amending the insurance law relating to simplifying the excess
4 line insurance placement affidavit requirements, as proposed in legisla-
5 tive bills numbers S. 8127 and A. 9088, is amended to read as follows:
6 (C) Every licensee, or affirming broker, in connection with the place-
7 ment of each risk pursuant to this section [not otherwise exempt from
8 the diligent effort requirement], shall record on the affidavit
9 required pursuant to subparagraph (A) of this paragraph the name, date
10 of the declination, and national association of insurance commission-
11 ers code of each authorized insurer declining a risk and information
12 relied upon that formed the basis of such licensee's or affirming
13 broker's reason to believe that the authorized insurer might consider
14 writing the type of coverage or class of insurance involved. [No addi-
15 tional diligent effort information shall be reported on the affidavit] A
16 licensee or affirming broker shall not be required to record on the
17 affidavit the name of the representative declining the risk, the repre-
18 sentative's affiliation, or the reason for the declination.
19 § 2. This act shall take effect on the same date and in the same
20 manner as a chapter of the laws of 2022 amending the insurance law
21 relating to simplifying the excess line insurance placement affidavit
22 requirements, as proposed in legislative bills numbers S. 8127 and A.
23 9088, takes effect.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04213-01-3
