New York Laws
Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries
2130 - Excess Line Association.

(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