N.Y. Comp. Codes R. & Regs. tit. 11 § 27.4

Current through Register Vol. 46, No. 43, October 23, 2024

Section 27.4 - Binding authority

(a) Section 2118(f) of the Insurance Law provides that an excess line broker may execute an authority to bind coverage for risks located within or outside of the State of New York and may exercise binding authority on behalf of an insurer not licensed or authorized to do business in this State.

(b) No excess line broker shall exercise binding authority on behalf of an unauthorized insurer, when the insured's home state is this State, unless:

(1) the placement conforms in all respects with section 2118 of the Insurance Law and this Part; and

(2) the broker has filed with the excess line association, at least 10 business days prior to exercising such binding authority, a signed copy of the written agreement between the broker and the insurer, setting forth all terms, conditions and limitations of the binding authority. A copy of any amendments to, or any notice of cancellation or termination of, the agreement shall be filed with the excess line association no later than 10 business days after adoption thereof.

(c) The binding authority agreements filed pursuant to this section shall describe the authority granted to the excess line broker and include the following items:

(1) a description of the kinds or classes of insurance which the broker may bind;

(2) the maximum dollar limits for any policy which the broker may bind and/or a provision requiring the risk to be submitted to the insurer;

(3) the maximum policy period for which the broker may bind;

(4) the geographical limits upon the exercise of binding authority by the broker; and

(5) name and telephone number of the principal insurer contact person.

(d) The excess line association shall provide monthly reports to the superintendent that will include the information contained in paragraphs (c)(1)-(4) of this section.

(e) The excess line association shall, upon request, furnish the superintendent with a copy of any agreement or amendment thereto, filed with it by an excess line broker pursuant to subdivision (b) of this section.

(f) The reports filed pursuant to subdivision (d) of this section and any agreement filed pursuant to subdivision (e) of this section shall be considered confidential documents and shall not be available for inspection by the public.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 27.4

Amended, New York State Register October 8, 2014/Volume XXXVI, Issue 40, eff.10/8/2014