New York Senate Bill S769A (the “Bill”) has failed to move in the New York Assembly despite its passage by the Senate and therefore is unlikely to become law in 2019.
We had recently reported on the Bill’s potential impact on the surplus lines industry in New York and potentially across the nation. Had the Bill become law, New York would have joined a growing number of states to curtail or eliminate the requirement for surplus lines brokers to perform a “diligent search” of the admitted market before placing coverage with unauthorized surplus lines insurers. In particular, the Bill would have allowed for surplus lines brokers to bypass to the diligent search requirement with respect to commercial lines policies when unaffiliated retail brokers are utilized in the chain of sale.
As demand continues to rise in the age of “InsurTech” for specialty, on-demand products that are often within the purview of the surplus lines market, we expect to see state legislatures continue amend and reconsider various aspects of surplus lines regulation, including the diligent search requirement. We will continue to update the industry as to further developments.
The post LL Surplus Lines Series (Entry 13): New York Diligent Search Reformation Bill Unlikely to Pass this Year appeared first on Insurance & Reinsurance.