Senate Bill S7551

2013-2014 Legislative Session

Relates to the duties of excess line brokers

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions

2013-S7551 (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2118, Ins L
Versions Introduced in 2015-2016 Legislative Session:
S2348

2013-S7551 (ACTIVE) - Summary

Specifies requirements for licensees to have exercised due care in selecting unauthorized insurers.

2013-S7551 (ACTIVE) - Sponsor Memo

2013-S7551 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7551

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to the duties  of  excess
  line brokers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subsection (a) of section 2118 of the insur-
ance law, as amended by chapter 220 of the laws of 1986, is  amended  to
read as follows:
  (1)  (A)  Every licensee licensed pursuant to section two thousand one
hundred five of this article shall  be  required  to  use  due  care  in
selecting the unauthorized insurer from whom policies are procured under
his license.
  (B)  A LICENSEE IS PRESUMED TO HAVE EXERCISED DUE CARE IN SELECTING AN
UNAUTHORIZED INSURER IF AT THE TIME OF PLACEMENT, THE EXCESS LINE  ASSO-
CIATION  ESTABLISHED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIRTY
OF THIS ARTICLE HAS PUBLISHED THE NAME OF SUCH  INSURER  ON  A  LIST  OF
ELIGIBLE UNAUTHORIZED INSURERS. THE EXCESS LINE ASSOCIATION WILL LIST NO
INSURER  UNLESS  IT HAS CONDUCTED AN ANALYSIS OF SUCH INSURER UPDATED NO
LESS THAN ANNUALLY AND DETERMINED SUCH INSURER,
  (I) IS FINANCIALLY SOLVENT AND STABLE;
  (II) MAINTAINS ADEQUATE CAPACITY AND POLICYHOLDER'S  SURPLUS  TO  MEET
ITS OBLIGATIONS TO POLICYHOLDERS, AND ALL OTHER LIABILITIES;
  (III) IS MANAGED BY INDIVIDUALS WHO ARE TRUSTWORTHY AND COMPETENT; AND
  (IV) MAINTAINS CLAIMS PRACTICES IN A SATISFACTORY MANNER.
  S 2. Subparagraph (C) of paragraph 3 of subsection (b) of section 2118
of  the insurance law, as amended by chapter 684 of the laws of 1993, is
amended to read as follows:
  (C) Every licensee, or affirming broker, in connection with the place-
ment of each risk pursuant to this section, shall record on the  affida-
vit  required pursuant to subparagraph (A) of this paragraph [the infor-
mation]  THE  NAME  OF  THE  INSURER  DECLINING   SUCH   RISK   AND   AN
IDENTIFICATION  NUMBER  FOR  SUCH INSURER ISSUED BY THE NATIONAL ASSOCI-
ATION OF INSURANCE COMMISSIONERS OR DEPARTMENT  OF  FINANCIAL  SERVICES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.