Last month, the New York State Insurance Department (the “Department”) held a public hearing in New York City to explore the possibility of expanding the Excess Lines Export List (the “Export List”). The Export List is a compilation of risks or coverages that may be placed by surplus lines brokers without compliance with the three declinations rule. The three declinations rule requires surplus lines brokers to obtain declinations from three admitted carriers in order to prove that the risks or coverages have little or no domestic market available for placement. At the hearing, New York brokers and agents pointed out that the three declinations rule is unnecessary and time-consuming, and that getting a declination is a complicated and slow process that involves filling out many forms. The Excess Line Association of New York proposed adding dozens of new coverages to the export list to eliminate the unnecessary regulatory burden. Some of the proposed new coverages include “Coastal Homeowners on Long Island,” ” Vacant Property,” “Special Events” and “Prize Indemnification.”
The Department expects to make its decision on the expansion of the Export List by the end of the Summer. Any change to the Export List is likely to be implemented on January 1, 2009.
