NU Online News Service, Sept. 4, 12:20 p.m.EDT

The New York State Insurance Department has added coverages toits excess and surplus lines "export list"– coverages an excesslines broker can place with a non-admitted carrier without firstgetting three declinations from New York licensed carriers.

In a hearing held in June 2008, retail and wholesale agentsurged expansion of the list to eliminate what they said are theunnecessary regulatory burdens inherent in the current system.Regulators said at the time that the department would consider theagents' arguments, but would also examine possible negativeconsequences of allowing agents to place business with carriers notlicensed in the state without first receiving declinations fromadmitted carriers.

In June 2009, the department formally proposed a regulation toexpand the list.

In the final approved version, nine coverages were added whereagents do not have to receive declinations from admitted carriers,and 10 additional coverages now require two declinations instead ofthree.

The nine coverages that require no declinations are:

oCommercial excess and umbrella liability with limits of atleast $10 million.

oCommercial property–commercial excess liability with coveragein excess of $50 million, and primary or excess property insurancecoverage for business property with a total insured value in excessof $200 million.

oContract frustration.

oEmployed lawyers liability.

oSome general liability coverages for some general contractors,subcontractors, and all construction trades.

oPrize indemnification.

oSpecial events.

oSpecial multi peril coverage.

oVacant commercial property.

At the June 2008 hearing, agents spoke at length aboutdifficulties in securing general liability coverage forcontractors, which was included in the new rule, and homeownerscoverage for residents of Long Island coastal counties of Nassauand Suffolk, which was not included.

Coverages now requiring two declinations include:

oAlcohol and/or drug rehabilitation centers.

oAlcohol and/or drug rehabilitation programs.

oResidential facilities including convalescent centers, nursinghomes, and assisted care facilities.

oDay care centers for adults, children or the physically ormentally disabled.

oGroup homes for adults, children or the physically or mentallydisabled.

oHalfway houses for adults, children and/or the physically ormentally disabled.

oHospices care service providers.

oSocial services agencies.

oFoster care service providers.

oHome health care providers.

The initial proposal to expand the export list was initiated bythe Excess Lines Association of New York.