NY S05896

Retail producing insurance brokers and unaffiliated wholesale excess line brokers are excused from the diligent effort requirement when placing commercial lines insurance with unauthorized insurers.

Defines "retail producing insurance broker" as a licensee who directly deals with an insured, "wholesale excess line insurance broker" as the licensed broker through whom excess line coverage is procured, and "commercial lines insurance" as policies not classified as covered policies under section 3425.

Establishes that brokers are unaffiliated if neither controls the other through ownership of 25% or more of voting securities or control of a majority of directors or trustees.

Existing exceptions to the diligent effort requirement remain in effect, including situations where the superintendent determines no declinations are required or another broker's affidavit accompanies the submission.

The amendments take effect immediately but expire with the expiration of the underlying subsection (A) of paragraph 3 of subsection (b) of section 2118.