New York Assembly Bill A06060

New York 2025-2026 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25
• Refer: 1/7/26

Caption

Permits a waiver of the diligent effort requirement in limited circumstances for certain insurance coverage to be placed by licensed excess line brokers with unauthorized insurers where a retail producing insurance broker seeks to procure or place commercial lines insurance through an unaffiliated wholesale excess line insurance broker.

Summary

This bill amends New York’s insurance law to create a limited exception to the existing “diligent effort” requirement for placing excess line insurance. Under current law, a broker generally must show that coverage could not be obtained from authorized insurers after making a diligent effort before placing insurance with an unauthorized insurer through the excess line market. The bill would allow that requirement to be waived in a specific commercial-lines setting when a retail producing insurance broker seeks coverage through an unaffiliated wholesale excess line insurance broker. The bill also defines key terms used in the new exception, including “retail producing insurance broker,” “wholesale excess line insurance broker,” “commercial lines insurance,” and what it means for brokers to be “unaffiliated.” It takes effect immediately, while preserving the existing expiration structure of the underlying statutory provision it amends.

Impact

The bill would modify Insurance Law section 2118 by carving out a new exemption from the diligent-effort documentation requirement for certain commercial insurance placements involving unaffiliated retail and wholesale brokers. In practice, this would reduce paperwork and compliance steps for brokers in those transactions and could make it easier and faster to place commercial lines coverage in the excess and surplus lines market. It affects licensed insurance brokers, excess line brokers, insured businesses seeking commercial coverage, and unauthorized insurers that write excess line business.

Sentiment

The available context suggests a generally practical, industry-focused bill with no recorded committee debate or votes in the materials provided. Its purpose appears to be streamlining a technical insurance placement process rather than changing coverage mandates or consumer benefits directly. Because there are no transcripts or vote records, there is no documented opposition or support in the provided history, but the structure of the bill indicates it is aimed at easing broker compliance in a narrow commercial context.

Contention

The main point of potential contention is the relaxation of the diligent-effort safeguard, which exists to ensure authorized insurers are considered before business is placed with unauthorized insurers. Supporters would likely view the waiver as a sensible efficiency measure for commercial placements handled through independent retail and wholesale brokers, while critics could argue it weakens a consumer- and market-protective requirement and may increase reliance on the surplus lines market. The bill narrows the waiver to unaffiliated brokers and commercial lines insurance, which appears designed to limit that concern.