Loading chat...
NY A09117
Bill
Status
1/31/2022
Primary Sponsor
Pamela Hunter
Click for details
AI Summary
-
Exempts retail producing insurance brokers and unaffiliated wholesale excess line insurance brokers from the "diligent effort" requirement otherwise mandated when placing commercial lines insurance with unauthorized insurers.
-
Defines "retail producing insurance broker" as a licensee who directly deals with an insured and "wholesale excess line insurance broker" as the licensed excess line broker through whom the retail broker procures coverage.
-
Specifies that brokers are "unaffiliated" if neither controls, is controlled by, or is under common control with the other, including owning 25% or more of voting securities or controlling a majority of directors.
-
Limits the exemption to commercial lines insurance, excluding "covered policies" as defined in Insurance Law section 3425.
-
Takes effect immediately, but the amendment expires when the underlying subsection (A) of paragraph 3 of section 2118(b) expires.
Legislative Description
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.
Last Action
referred to insurance
1/31/2022