Legislation supported by Big I NY, which would simplify and streamline the affidavit process and exempt commercial lines insurance transactions placed by wholesale insurance brokers from the requirement to obtain three separate declinations, has been placed on the Senate Insurance Committee agenda for a vote on Monday, April 29th.
New York’s excess line market is critical to providing insurance for risks that are not underwritten by admitted carriers – such as those which are unique, volatile, or lack loss history. Current law requires brokers to obtain three declinations from admitted carriers before an excess line policy can be obtained, and a detailed affidavit must be filed for each declination. New York is one of only ten states that require the filing of declination information.
The current system is burdensome and time consuming, and can lead to delays which are detrimental to prospective policyholders.