NU Online News Service, July 8, 3:18 p.m. EDT
The New York State Insurance Department will hold a hearing in August to discuss further expanding the state's excess and surplus lines "export list" after adding coverages to the list last year.
Excess lines brokers may place export list coverages with a nonadmitted carrier without first getting three declinations from New York licensed carriers.
In June 2008, retail and wholesale agents urged expansion of the list to eliminate what they said are the unnecessary regulatory burdens inherent in the current system.
In September 2009, the department approved nine coverages to be added to the export list, and listed an additional 10 coverages that would require two declinations from licensed carriers instead of three.
Insurance Superintendent James J. Wrynn has now announced an August 20 hearing to explore the possibility of further expanding the export list.
As with the previous request to expand the list, the current request was made by the Excess Line Association of New York.
The coverages up for consideration are:
o Auto physical damage coverage for commercial trucks, black cars, limousines and other commercial passenger transportation vehicles.
o Excess salary protection (disability) insurance.
o Recreational Liability Insurance, including coverage for parachuting, bungee jumping, hunting and fishing clubs, camp grounds, children's camps, and other risks.
o Builders risk insurance for construction projects where the total insured values exceed $10,000,000.
o Primary and/or excess liability insurance for vacant or unoccupied buildings.
o Excess professional/errors and omissions liability where the underlying policy limits and/or self-insured retention is at least $10,000,000 per occurrence.
Additionally, the department will consider reducing the number of declinations required to zero from two for certain coverages already on the list.
The department has provided a list of all coverages that will be considered.
The hearing will be held at the New York State Insurance Department Neil Levin Hearing Room, 5th Floor, 25 Beaver St., New York, NY 10004.
Written testimony may be submitted through the department's website.
The department said oral and written testimony should address:
o The extent to which a particular type of coverage is readily available from authorized insurers.
o The reasons a particular type of coverage is not readily available from authorized insurers.
o The volume and nature of denials and restrictions on the coverage in question.
o Whether and the extent to which certain types of coverage are available from unauthorized insurers.
o The efficacy of a market assistance program as an alternative to the addition of any type of coverage to the export list.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.