New York S 5310: Permits a waiver of the diligent effort requirement in limited circumstances for certain insurance coverage to be placed by licensed excess line brokers with unauthorized insurers

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S05310 Summary:

BILL NOS05310 

&nbsp

SAME ASSAME AS A06060

&nbsp

SPONSORBAILEY

&nbsp

COSPNSRASHBY, GALLIVAN, HELMING, PALUMBO, WEBB

&nbsp

MLTSPNSR

&nbsp

Amd §2118, Ins L

&nbsp

Permits a waiver of the diligent effort requirement in limited circumstances for certain insurance coverage to be placed by licensed excess line brokers with unauthorized insurers where a retail producing insurance broker seeks to procure or place commercial lines insurance through an unaffiliated wholesale excess line insurance broker.

Go to top S05310 Actions:

BILL NOS05310 

&nbsp

02/20/2025REFERRED TO INSURANCE

03/03/20251ST REPORT CAL.423

03/04/20252ND REPORT CAL.

03/05/2025ADVANCED TO THIRD READING 

06/13/2025COMMITTED TO RULES

01/07/2026REFERRED TO INSURANCE

03/09/20261ST REPORT CAL.486

03/10/20262ND REPORT CAL.

03/11/2026ADVANCED TO THIRD READING 

05/19/2026PASSED SENATE

05/19/2026DELIVERED TO ASSEMBLY

05/19/2026referred to insurance

Go to topS05310 Committee&nbspVotes:

Go to topS05310 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05310 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5310

 2025-2026 Regular Sessions

 IN SENATE

 February 20, 2025
 ___________

 Introduced by Sens. BAILEY, GALLIVAN, PALUMBO, WEBB -- 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 permitting a waiver of
 the diligent effort requirement in limited circumstances for certain
 insurance coverage to be placed by licensed excess line brokers with
 unauthorized insurers

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subparagraph (A) of paragraph 3 of subsection (b) of
 2 section 2118 of the insurance law, as amended by section 12 of part I of
 3 chapter 61 of the laws of 2011, is amended to read as follows:
 4 (A) Except as provided in subparagraph (F) of this paragraph and
 5 subject to subparagraph (C) of this paragraph, submission of insurance
 6 documents to the excess line association shall be accompanied by a
 7 statement subscribed to, and affirmed by, the licensee or sublicensee as
 8 true under the penalties of perjury that, after diligent effort, the
 9 full amount of insurance required could not be procured, from authorized
 10 insurers, each of which is authorized to write insurance of the kind
 11 requested and which the licensee has reason to believe might consider
 12 writing the type of coverage or class of insurance involved, and further
 13 showing that the amount of insurance procured from an unauthorized
 14 insurer is only the excess over the amount procurable from an authorized
 15 insurer. The licensee, however, shall be excused from affirming that a
 16 diligent effort, as defined above, was made to procure the coverage from
 17 authorized insurers if the licensee's affidavit is accompanied by the
 18 affidavit of another broker involved in the placement affirming as true
 19 under the penalties of perjury that, after diligent effort by the
 20 affirming broker, the required insurance could not be procured from an
 21 authorized insurer which the affirming broker had reason to believe
 22 might consider writing the type of coverage or class of insurance

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD09627-01-5

 S. 5310 2

 1 involved. The licensee and the affirming broker shall be excused from
 2 affirming that a diligent effort was made if the superintendent deter-
 3 mines, pursuant to paragraph four of this subsection, that no declina-
 4 tions are required. Notwithstanding any provision to the contrary
 5 contained in this chapter, where a retail producing insurance
 6 broker seeks to procure or place commercial lines insurance through
 7 an unaffiliated wholesale excess line insurance broker, both the
 8 retail producing insurance broker and the wholesale excess line insur-
 9 ance broker shall be excused from making any diligent effort otherwise
 10 required by this article.
 11 § 2. Section 2118 of the insurance law is amended by adding a new
 12 subsection (g) to read as follows:
 13 (g) (1) As used in this section: