New York Superintendent of Insurance James J. Wrynn said his agency will hold a public hearing on August 20 to explore the possibility of increasing insurance capacity in New York by easing access to unauthorized insurers.
The New York State Insurance Department hopes to get input from the public as it determines whether to revise eligible coverages on the export list.
State law authorizes department to amend the number of declinations required to be obtained prior to making an excess line placement, with respect to particular coverages.
Regulation 41 establishes standards and procedures for the placement of insurance by licensed excess line brokers with insurers not authorized to do business in New York. Among those requirements is that before a New York insurance risk can be placed with an unauthorized insurer, the risk must be offered to and declined by three authorized insurers.
The second amendment to Regulation 41 established a list of coverages, commonly referred to collectively as the “Export List”, which may be placed by excess line brokers with unauthorized insurers without first having to obtain the requisite number of declinations from authorized insurers.
The Excess Line Association of New York has proposed the addition of several classes to the export list on behalf of its members, which is available on the Insurance Department’s website at www.ins.state.ny.us/iprop.htm#r41. Also included on the website is a list of coverages that are currently on the export list.
The public hearing will be held on August 20 at 10 a.m. at the New York State Insurance Department Neil Levin Hearing Room, 5th Floor, 25 Beaver St, New York, NY 10004.
The department will hear testimony pertaining to the availability of insurance coverage by both authorized and unauthorized insurers, such as:
- The extent to which a particular type of coverage is readily available from authorized insurers;
- The reason(s) a particular type of coverage is not readily available from authorized insurers;
- The volume and nature of denials and restrictions on the coverage in question;
- Whether and the extent to which certain types of coverage are available from unauthorized insurers; and
- The efficacy of a market assistance program as an alternative to the addition of any type of coverage to the export list.
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