New York Dept. to Hold Hearing on Export List

New York Superintendent of Insurance Eric Dinallo announced that the New York State Insurance Department will hold a public hearing on June 13 to determine whether he will revise eligible coverages on the export list, as set forth in Insurance Department Regulation 41 (11 NYCRR 27). The hearing will explore the possibility of increasing insurance capacity by easing access to unauthorized insurers when the authorized insurance market is unresponsive.

The hearing is being held pursuant to Section 2118(b)(4) of the Insurance Law, which authorizes the Superintendent, after conducting a public hearing, to amend the number of declinations required to be obtained prior to making an excess line placement, with respect to particular coverages.

Regulation 41 establishes standards and procedures for the placement of insurance by licensed excess line brokers with insurers not authorized to do business in New York. Among those requirements is that before a New York insurance risk can be placed with an unauthorized insurer, the risk must be offered to and declined by three authorized insurers that the excess line broker has reason to believe would consider writing that type of coverage or class of insurance. The second amendment to Regulation 41 established a list of coverages, commonly referred to collectively as the “Export List”, which may be placed by excess line brokers with unauthorized insurers without first having to obtain the requisite number of declinations from authorized insurers.

The Excess Line Association of New York has proposed the addition of several classes to the export list on behalf of its members, which is available on the Insurance Department’s website at www.ins.state.ny.us/iprop.htm#r41. Also included on the website is a list of the current coverages on the export list.

The public hearing will be held on June 13, 2008 at 10 a.m. at the New York State Insurance Department Neil Levin Hearing Room, 5th Floor, 25 Beaver St, New York, NY 10004. The hearing is open to the public.

Those wishing to testify at the hearing should contact the Department’s Public Affairs Bureau at (212) 480-5262. Oral testimony will be allowed for up to 10 minutes per speaker. Written comments for the hearing record may be submitted to Export List Hearings, Public Affairs Bureau, New York State Insurance Department, 25 Beaver Street, New York, NY 10004, or e-mailed to PublicHearingsComments@ins.state.ny.us with the subject line “EXPORT LIST HEARINGS.” Comments will be accepted up to 15 days following the public hearing.