PIANY-priority excess-line reform bill reported out of committee, heads to Senate floor 

April 17, 2024

Over the last several legislative sessions, PIANY has been pushing for reforms to the way business is placed in the excess & surplus marketplace to ensure that agents and consumers have access to the insurance producers they need.  

During the 2021-22 session, PIANY was successful in getting passage of legislation that removed certain data points from the excess-line affidavit that brokers must complete when placing business in the E&S market. Learn more here.  

This legislation session, PIANY supports S.5896/A.5253. S.5896, sponsored by Sen. Neil Breslin, D-46, was successfully moved out of the Senate Insurance Committee on April 15, 2024. Currently, before a retail insurance broker can place business in the E&S marketplace, they must first go through a “diligent effort” process, which includes having three admitted carriers decline to write the risk. This process adds an unnecessary layer of paperwork for the producer and delays the consumer getting the insurance policy they want. 

The legislation would exclude both retail producing insurance brokers and wholesale excess-line insurance brokers from the diligent effort requirement when placing commercial-lines insurance through an unaffiliated wholesale excess-line insurance broker. Brokers are considered unaffiliated if they do not control, are not controlled by, or are not under common control with the other broker. If passed, the act would take effect immediately. 

PIANY applauds the Senate Insurance Committee for passing this important bill and Sen. Breslin for his leadership on this issue. PIANY encourages Senate leadership to bring S.5896 up for a full Senate vote as soon as possible. 

Bradford J. Lachut, Esq.
PIA Northeast | + posts

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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