For immediate release …
PIWA hails modernized New York state excess lines standards
GLENMONT, N.Y.-The Professional Insurance Wholesalers Association of New York State Inc. applauds the New York State Insurance Department for eliminating formerly burdensome requirements for insurance brokers seeking hard-to-place coverage for their clients. The amended Governing Standards for Excess Lines Placements in New York State go into effect Sept. 2.
“We applaud the NYSID for streamlining the export list,” said Gary Ricker, president of PIWA. “Unwarranted requirements have been eliminated, making it possible for insurance brokers to acquire coverage more expediently for clients.”
The updated guideline, the 11th amendment to Regulation 41, reduces, and even eliminates, some of the necessary declinations that brokers were required to obtain from the admitted market for hard-to-place specialty coverages. “Experience has shown that these requirements offered little benefit to consumers and brokers alike,” explained Ricker. “The arduous, time-consuming process of obtaining a number of declinations was unnecessary and only served to frustrate consumers seeking coverage.”
The new regulation abolishes the need for declinations in the following policies: commercial excess and umbrella liability with a minimum $10 million limit per occurrence; commercial property exceeding $50 million in coverage; primary or excess property insurance more than $200 million; vacant commercial property; contract frustration; employed-lawyers liability for those attorneys employed by business entities other than law firms; primary and excess liability for construction trades covering damages arising out of building, demolition or renovation; special multi-peril coverage when packaged with property coverage; owners’ contractor protective insurance; prize indemnification; and special events of limited duration.
The regulation also limits necessary declinations to just two for: primary or excess errors and omissions/miscellaneous professional liability coverage for alcohol and drug rehabilitation centers/programs, residential nursing homes/assisted-care facilities, daycare centers, group homes, hospice providers, social-service agencies, foster-care service providers and home-health providers.
PIWA successfully worked for the adoption of the amended standards with the help of a coalition of industry associations, including: Excess Line Association of New York, Professional Insurance Agents of New York State Inc., Council of Insurance Brokers of Greater New York and Independent Insurance Agents and Brokers of New York. Both Ricker and PIWA past President Gary Hollederer testified before the NYSID last year in support of the changes.
Established in 1978, the Professional Insurance Wholesalers Association of New York State Inc. is a trade association of New York state insurance wholesalers serving retail insurance producers with specialty and excess lines markets.
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