New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

 

Circular Letter No. 28 (1999)
September 13, 1999
TO: ALL LICENSED INSURANCE BROKERS; EXCESS LINE BROKERS; EXCESS LINE ASSOCIATION OF NEW YORK; AND INSURANCE PRODUCER ORGANIZATIONS
RE: OCEAN MARINE INSURANCE PLACEMENTS

The purpose of this circular letter is to clarify the Department’s position on certain requirements regarding the placement of ocean marine insurance business, which contains exposures that are ocean marine insurance and any other kind of insurance. It is the position of this Department that the part of the exposure that is any other kind of insurance other than ocean marine insurance, if placed with an unauthorized insurer, should only be placed through an excess line broker licensed pursuant to Sections 2105 and 2118 of the New York Insurance Law. Such business is also subject to the requirements of Sections 2118 and 2130 of the Insurance Law and the provisions of Regulation 41.

It is the broker’s responsibility to allocate the risk between ocean marine insurance and any other kind of insurance. The part of the risk that is other than ocean marine insurance, when placed with an unauthorized insurer, is subject to the payment of excess line premium tax, the filing of affidavits and the stamping of the policies by the Excess Line Association of New York as well as all other applicable regulatory requirements of the Department.

 

Please acknowledge receipt of this Circular Letter to:

Mr. Jack Stein, Senior Insurance Examiner
New York State Insurance Department, Excess Line Unit
25 Beaver Street, 2nd floor
New York, New York 10004

Very truly yours,
__________________________
Mark Presser
Assistant Deputy Superintendent
and Chief Examiner
Property Bureau