This week, the Senate Insurance Committee voted in favor of Big I NY – supported legislation which would make it easier to place commercial coverage in the excess market. The bill, S.498 (Breslin, D-Bethlehem), 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.
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 bill advances to the Senate floor, where it awaits a full vote by the Senate. Before it can become law, the bill must also pass the Assembly Insurance Committee and a full floor vote by the Assembly, and be signed by the Governor.