NY A05253

Allows retail producing insurance brokers and wholesale excess line insurance brokers to be excused from making diligent efforts to obtain commercial lines insurance from authorized insurers when working through unaffiliated brokers.

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 excess line coverage.

Specifies that brokers are "unaffiliated" if neither controls the other and neither owns, controls, or has power to vote 25 percent or more of voting securities or controls the election of a majority of directors of the other.

Defines "commercial lines insurance" as any policy not classified as a "covered policy" under section 3425 of the insurance law.

Takes effect immediately, with amendments to the diligent effort requirement expiring when the underlying subsection expires.