NEW YORK ADOPTS REVISED EXCESS LINE PLACEMENT STANDARDS
The New York Department of Financial Services promulgated, on an emergency basis, amendments to Insurance Regulation 41 on January 7, 2013. Regulation 41 deals with standards governing the placement of excess line insurance, which also is known as nonadmitted insurance. The Nonadmitted and Reinsurance Reform Act of 2010 (“NRRA”), which was part of the Dodd-Frank Act, subjects the placement of nonadmitted insurance solely to the statutory and regulatory requirements of the insured’s home state, and provides that only an insured’s home state may require an excess line broker to be licensed to sell, solicit, or negotiate nonadmitted insurance with respect to such insured. The New York legistature adopted an amendment to New York’s insurance laws in 2011, in part to conform to these provisions of the NRRA, and these amendments to Regulation 41 further the implementation of the statutory changes. The current amendments affect a large number of sections.11 NYCRR Part 27.
This post written by Rollie Goss.
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