Legislation to streamline the process of placing commercial policies in the excess-lines market has passed the New York state Senate (63-0) on May 24.
The bill (S.498A) would simplify the excess-lines affidavit that producing brokers must complete as part of the diligent-effort requirement when placing business in the E&S marketplace.
New York is one of only 10 states that require the filing of declination information, and the only state that requires 21 elements in total for three separate declinations. This legislation would reduce the information requirements to nine—only requiring the name and National Association of Insurance Commissioners code of each admitted carrier that declined a risk as well as the reason for the declination.
The bill’s history
Originally, this bill passed the state Senate in February, and it included significant changes to the diligent-effort requirements, including waiving the diligent-effort requirement when E&S business is placed through an independent wholesale broker. However, opposition in the state Assembly caused the Senate to recall the bill after its passage. Subsequently, the bill was amended to remove the diligent-effort reforms and instead focus solely on modernizing the affidavit.
PIANY was an outspoken supporter of this legislation—both in its original and amended form. PIANY would like to thank Sen. Neil Breslin, D-44, for not only his sponsorship of this legislation, but his continued support of the independent agent channel.