Bill > A06060

This bill modifies insurance law to create a new exception to the "diligent effort" requirement for placing commercial lines insurance through excess line brokers. Specifically, when a retail insurance broker (who directly deals with the insured) works with an unaffiliated wholesale excess line insurance broker to procure insurance, both brokers will be excused from having to demonstrate that they made a diligent effort 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 affiliated (such as ownership or control of voting securities). The bill provides more flexibility for insurance brokers in placing commercial insurance by reducing the documentation requirements when working through an unaffiliated wholesale broker. The provisions are intended to streamline the process of obtaining commercial insurance, particularly in cases where standard authorized insurers may not provide the needed coverage. The changes will take effect immediately but are subject to existing subsection expiration rules.

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https://www.nysenate.gov/legislation/bills/2025/A6060