In Issue 19-1 of ELANY Elaborates, ELANY details their collaborative effort with the New York legislature to modernize New York’s approach to excess lines brokers. In an effort to streamline the diligent effort search process, the New York Senate Insurance Committee recently introduced Senate Bill 769. The Bill attempts to amend NYCLS Ins. § 2118 in order to exempt certain commercial lines policies placed by wholesale brokers from the diligent effort requirement and expedite the process for retail and wholesale brokers filing affidavits regarding declinations.
SB 769 would only exempt commercial lines insurance transactions through unaffiliated retail and wholesale brokers from diligent effort requirements. As only the diligent effort is waived, brokers would still be required to file all coverage documents and affidavits with ELANY. Additionally, to expedite the affidavit process, SB 769 would remove the declination date, the reason for the declination, and the name and affiliation of the declining company representative. By eliminating certain elements of the affidavit, filing time speeds up and mistakes are reduced, thus avoiding any delays and extra fees for “suspended” filings.
ELANY and the New York legislature expects this bill to improve the service to insureds without sacrificing the state’s ability to monitor the market. Additionally, retail and wholesale brokers would both experience an improved, time-efficient declinations process, boosting their speed to market.
For any questions regarding New York’s SB 769, or for assistance in any excess line compliance matters, please contact Westmont Associates, Inc.