NY Ins L § 2130 (2021)
2021 New York Laws ISC - Insurance Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries 2130 - Excess Line Association.

* §  2130.  Excess  line  association.  (a)  There is hereby created a non-profit association to be known as the excess line association of New York. All excess line licensees shall be deemed to  be  members  of  the association.  The  association must perform its functions under the plan of operation established and  approved  under  subsection  (c)  of  this section  and  must  exercise  its  powers  through  a board of directors established under subsection (b) of this section. The association  shall be supervised by the superintendent. The association shall be authorized and have the duty to:  (1)  receive  and  record  all  excess  line insurance documents which excess line brokers are required to  file  with  the  association  under section two thousand one hundred eighteen of this article;  (2)  notify  the  superintendent  or  his  designee  prior to stamping submitted insurance documents as provided in  paragraph  three  of  this subsection  if  the  association  believes that the unauthorized insurer does not meet the  standards  of  eligibility  imposed  by  section  two thousand  one  hundred eighteen of this article, together with any rules and regulations promulgated pursuant to said section;  (3) stamp all  excess  line  insurance  documents  which  excess  line brokers  are  required  to  file  with the association under section two thousand  one  hundred  eighteen  of  this  article,  provided  that  an unauthorized  insurer  meets  the  standards  of  eligibility imposed by section two thousand one hundred eighteen of this article, together with any rules and regulations promulgated pursuant to said section;  (4) prepare reports to  be  provided  to  the  superintendent  on  the fifteenth  day  of every month, which reports shall include premium data from excess line licensee affidavits relating to excess  line  insurance filed  by  each  licensee  and  stamped  by  the  association during the preceding calendar month. Such reports shall also include  corresponding licensee  affidavits  in  such form as the superintendent may prescribe. The association shall provide each licensee with a copy of the report as it pertains to said licensee's business for the calendar month;  (5) prepare and deliver to each licensee  and  to  the  superintendent annually  the  reports  of  excess  line  business,  which reports shall include a delineation of the classes  and  kinds  of  business  procured during  the  preceding  calendar year in such form as the superintendent may prescribe;  (6) deliver to each licensee standard forms  for  affidavits  required under section two thousand one hundred eighteen of this article;  (7)  employ  and retain such persons as are necessary to carry out the duties of the association;  (8)  borrow  money  as  necessary  to  effect  the  purposes  of   the association;  (9)  enter  contracts  as  necessary  to  effect  the  purposes of the association;  (10)  perform  such  other  acts  as  will  facilitate  and  encourage compliance  by  its  members  with the excess line law of this state and rules promulgated thereunder; and  (11) provide such other services to its members as are  incidental  or related to the purposes of the association.  (b)(1)  The  association  shall  function through a board of directors elected by the association members, and officers who shall be elected by the board of directors.  (2) The board of directors of the association  shall  consist  of  not less  than  five nor more than nine persons serving terms as established in the plan of operation. The plan of operation shall  provide  for  the election  of a board of directors by the members of the association from its membership. The plan of operation shall fix the manner of voting and  may weigh each member's vote to reflect the annual excess line insurance premium  written  by  the  member.  Members  employed  by  the  same  or affiliated employers may consolidate their premiums written and delegate an individual officer or partner to represent the member in the exercise of  association  affairs,  including service on the association board of directors. The  superintendent  shall,  within  thirty  days  after  the enactment  date  of  this section, appoint an interim board of directors for the sole purpose  of  conducting  an  election  of  directors  which election  shall  be conducted within sixty days after the enactment date of this section.  (3) The board of  directors  shall  elect  such  officers  as  may  be provided in the plan of operation.  (c)(1)  The  association  shall submit to the superintendent a plan of operation and any amendments thereto to provide operating procedures for the administration of the association. The plan  of  operation  and  any amendments  thereto  shall  become effective upon approval in writing by the superintendent.  (2) All association members must comply with the plan of operation.  (d) (1) The superintendent shall at least once in three years, make or cause to be made an examination of the association. The reasonable  cost of   any  such  examination  shall  be  paid  by  the  association  upon presentation to it by the superintendent of a detailed account  of  such cost. Any examiner authorized by the superintendent shall have the power to  administer  oaths  and  to examine under oath any director, officer, member, agent or employee of the association. During the course of  such examination,  the  directors, officers, members, agents and employees of the association shall  make  available  all  books,  records,  accounts, documents  and  agreements  pertaining thereto. The superintendent shall furnish a copy of the examination  report  to  the  association.  Within thirty  days  after receipt of the report, the association may request a hearing on the report or any facts or recommendations  therein.  If  the superintendent  finds  the  association  is  not in compliance with this section he may issue an order requiring compliance or discontinuance  of such  violation  and  the  association  shall  be subject to the penalty provisions of this chapter.  (2) A  director  may  be  removed  from  the  association's  board  of directors  by  the superintendent for cause, stated in writing, after an opportunity has been given to the director to be heard thereon.  (e) In the absence of gross negligence, fraud,  or  bad  faith,  there shall  be  no  liability  on  the part of and no causes of action of any nature shall arise against the  association,  its  directors,  officers, agents,  or  employees  for  any  action taken or omitted by them in the performance  of  their  powers  and  duties  under  this   section   and subsections  (b),  (c)  and  (f)  of  section  two  thousand one hundred eighteen of this article.  (f) The services performed by the association shall  be  funded  by  a stamping  fee  assessed  for each declarations page, cover note or other premium bearing document submitted to the association. The stamping  fee shall  be  established by the board of directors of the association from time to time and shall be subject to approval by the superintendent. The stamping fee shall be  paid  by  the  excess  line  licensee.  Provided, however,  the  licensee shall be allowed to receive and collect from the insured the stamping fee if the licensee obtains a  written  memorandum, signed by the insured, specifying the amount and the insured's agreement to pay the stamping fee.  (g)  Nothing  in  this  section  shall  be  construed  to  modify  the obligation of an excess line licensee to comply with the  provisions  of sections  two  thousand  one  hundred  five and two thousand one hundred  eighteen  of  this  chapter,  nor  to  diminish   the   power   of   the superintendent   to   take   any  other  disciplinary  action  otherwise authorized by this chapter.  (h)  The superintendent may declare an unauthorized insurer ineligible and order the association not to stamp  insurance  documents  issued  by such unauthorized insurer.  (i)  Compliance  by  the  association  with  the  duties  set forth in subsection (a) of this section in  connection  with  filing,  receiving, recording  and  stamping  of excess line insurance documents, as well as the requirement  to  deliver  standard  forms  for  affidavits,  may  be accomplished  by  means  of  electronic  or  other  media  transmission, provided that the superintendent first approves such methods of  filing, receiving, recording and stamping.   * NB Expires July 1, 2024