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NY S08128
Bill
Status
4/4/2022
Primary Sponsor
Neil Breslin
Click for details
AI Summary
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Excuses both retail producing insurance brokers and wholesale excess line insurance brokers from the diligent effort requirement when placing commercial lines insurance through unaffiliated brokers, notwithstanding other provisions in the insurance law.
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Defines "retail producing insurance broker" as an insurance broker licensee who directly deals with an insured.
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Defines "wholesale excess line insurance broker" as the licensed excess line broker through whom the retail broker procures excess line coverage on behalf of the insured.
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Defines "commercial lines insurance" as any policy not classified as a "covered policy" under section 3425 of the insurance law.
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Specifies that two brokers are "unaffiliated" if neither controls the other or is under common control, including situations where one broker owns 25 percent or more of voting securities or controls the majority of directors of the other.
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
4/4/2022