May 6, 2019
PIANY priority excess-lines bill reported out of committee
A bill, S.769A, which would simplify the process for placing business in the excess-lines marketplace, was reported out of the Senate Insurance Committee earlier this week. The legislation, sponsored by Sen. Neil Breslin, D-44, would eliminate the excess-line insurance diligent-effort requirement for commercial risk placements made by retail producers through unaffiliated wholesale brokers.
The bill also would significantly reduce the amount of diligent-effort information required to complete excess-line affidavits requiring only the name of the declining company, the company’s National Association of Insurance Commissioners number and the reason for the broker’s belief that the admitted insurer would not consider underwriting the risk. This would reduce the number of declination data elements from 21 to nine for a three-declination filing. PIANY supports legislation and encourages the full Senate to take action and pass this bill.