Bill > S05310

This bill modifies New York insurance law to create a new exception to the "diligent effort" requirement for placing commercial lines insurance. Specifically, when a retail producing insurance broker (a broker who directly deals with an insured) seeks to procure insurance through an unaffiliated wholesale excess line insurance broker, both brokers will be excused from having to demonstrate that they made diligent efforts to obtain coverage from authorized insurers before using an unauthorized insurer. The bill defines key terms such as "retail producing insurance broker" and "wholesale excess line insurance broker", and establishes criteria for determining whether brokers are considered unaffiliated, which includes ownership and control tests like whether a broker owns 25% or more of voting securities of the other broker or can control the election of a majority of directors. The purpose appears to be streamlining the insurance placement process for commercial lines by reducing administrative burdens on brokers when working with unrelated brokerage firms. The changes will take effect immediately but are set to expire with the existing subsection of insurance law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5310