The recently proposed Eleventh Amendment (the “Amendment”) to Regulation 41 (11 NYCRR 27), which governs the standards for excess lines placement, became effective on September 2, 2009. The Amendment placed several additional categories of risks insured by excess lines carriers on the New York Export List. The Excess Line Association of New York, the Independent Insurance Agents & Brokers of New York and other interested groups lobbied for this change.
Pursuant to the Amendment, the following coverages have been added to the New York Export List:
- Commercial Excess Liability where the underlying policy limits or self insured retention is at least $10,000,000 per occurrence;
- Commercial Umbrella Liability where the underlying automobile and general liability coverages or self insured retentions contain limits of at least $10,000,000 per occurrence;
- Excess Commercial Property where the policy provides limits in excess of $50,000,000 in underlying coverage;
- Primary or Excess Property for property used for business purposes when the total insured values exceed $200,000,000;
- Contract Frustration;
- Employed Lawyers Liability for lawyers who are employed as lawyers by a business entity and not a law firm;
- General Liability, Owners, Landlords and Tenants, Manufacturers and Contractors, and Special Multi Peril Coverage for construction contractors;
- Prize Indemnification;
- Special Events for unique exposures of limited duration, generally issued to sponsors, organizers, performers and participants of trade shows, parades, flea markets, concerts, fairs and other similar events; and
- Vacant Commercial Property.
The inclusion of these types of coverages on the New York Export List will alleviate the broker from having to obtain declinations of coverage from admitted carriers for these particular lines, thus allowing the broker to provide a more cost effective service to his or her clients for these hard-to-place risks.