September 1,
2009
PIWA hails modernized New York
state excess lines standards
NYSID's streamlined export
list simplifies specialty policies for consumers, brokers
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.
Register for the PIWA Fall
Conference!
PIWA’s 2009 conference will be held
Sept. 23-24 at the Pearl River Hilton. Join your colleagues for a fun and
challenging golf outing on the 23rd, help us to recognize Dave MacLeod as PIWA’s
Service to the Industry Award winner, and don’t miss the on target and
interesting panel discussion education sessions on Sept. 24. To register, click
on this link: http://www.piwa.org/promo_annualconference_09.php
