* § 2130. Excess line association.
(a)There is hereby created a\nnon-profit association to be known as the excess line association of New\nYork. All excess line licensees shall be deemed to be members of the\nassociation. The association must perform its functions under the plan\nof operation established and approved under subsection (c) of this\nsection and must exercise its powers through a board of directors\nestablished under subsection (b) of this section. The association shall\nbe supervised by the superintendent. The association shall be authorized\nand have the duty to:\n (1) receive and record all excess line insurance documents which\nexcess line brokers are required to file with the association under\nsection two thousand one hundred eighteen of this article. All records\nwh
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* § 2130. Excess line association. (a) There is hereby created a\nnon-profit association to be known as the excess line association of New\nYork. All excess line licensees shall be deemed to be members of the\nassociation. The association must perform its functions under the plan\nof operation established and approved under subsection (c) of this\nsection and must exercise its powers through a board of directors\nestablished under subsection (b) of this section. The association shall\nbe supervised by the superintendent. The association shall be authorized\nand have the duty to:\n (1) receive and record all excess line insurance documents which\nexcess line brokers are required to file with the association under\nsection two thousand one hundred eighteen of this article. All records\nwhich an excess line broker is required to maintain under section two\nthousand one hundred eighteen of this article shall be open to\nexamination by the excess line association;\n (2) notify the superintendent or his designee prior to stamping\nsubmitted insurance documents as provided in paragraph three of this\nsubsection if the association believes that the unauthorized insurer\ndoes not meet the standards of eligibility imposed by section two\nthousand one hundred eighteen of this article, together with any rules\nand regulations promulgated pursuant to said section;\n (3) stamp all excess line insurance documents which excess line\nbrokers are required to file with the association under section two\nthousand one hundred eighteen of this article, provided that an\nunauthorized insurer meets the standards of eligibility imposed by\nsection two thousand one hundred eighteen of this article, together with\nany rules and regulations promulgated pursuant to said section;\n (4) prepare reports to be provided to the superintendent on the\nfifteenth day of every month, which reports shall include premium data\nfrom excess line licensee affidavits relating to excess line insurance\nfiled by each licensee and stamped by the association during the\npreceding calendar month. Such reports shall also include corresponding\nlicensee affidavits in such form as the superintendent may prescribe.\nThe association shall provide each licensee with a copy of the report as\nit pertains to said licensee's business for the calendar month;\n (5) prepare and deliver to each licensee and to the superintendent\nannually the reports of excess line business, which reports shall\ninclude a delineation of the classes and kinds of business procured\nduring the preceding calendar year in such form as the superintendent\nmay prescribe;\n (6) deliver to each licensee standard forms for affidavits required\nunder section two thousand one hundred eighteen of this article;\n (7) employ and retain such persons as are necessary to carry out the\nduties of the association;\n (8) borrow money as necessary to effect the purposes of the\nassociation;\n (9) enter contracts as necessary to effect the purposes of the\nassociation;\n (10) perform such other acts as will facilitate and encourage\ncompliance by its members with the excess line law of this state and\nrules promulgated thereunder; and\n (11) provide such other services to its members as are incidental or\nrelated to the purposes of the association; and\n (12) utilize the authority granted to unincorporated associations\nunder section twelve of the general associations law.\n (b)(1) The association shall function through a board of directors\nelected by the association members, and officers who shall be elected by\nthe board of directors.\n (2) The board of directors of the association shall consist of not\nless than five nor more than nine persons serving terms as established\nin the plan of operation. The plan of operation shall provide for the\nelection of a board of directors by the members of the association from\nits membership. The plan of operation shall fix the manner of voting and\nmay weigh each member's vote to reflect the annual excess line insurance\npremium written by the member. Members employed by the same or\naffiliated employers may consolidate their premiums written and delegate\nan individual officer or partner to represent the member in the exercise\nof association affairs, including service on the association board of\ndirectors. The superintendent shall, within thirty days after the\nenactment date of this section, appoint an interim board of directors\nfor the sole purpose of conducting an election of directors which\nelection shall be conducted within sixty days after the enactment date\nof this section.\n (3) The board of directors shall elect such officers as may be\nprovided in the plan of operation.\n (c)(1) The association shall submit to the superintendent a plan of\noperation and any amendments thereto to provide operating procedures for\nthe administration of the association. The plan of operation and any\namendments thereto shall become effective upon approval in writing by\nthe superintendent.\n (2) All association members must comply with the plan of operation.\n (d) (1) The superintendent shall at least once in three years, make or\ncause to be made an examination of the association. The reasonable cost\nof any such examination shall be paid by the association upon\npresentation to it by the superintendent of a detailed account of such\ncost. Any examiner authorized by the superintendent shall have the power\nto administer oaths and to examine under oath any director, officer,\nmember, agent or employee of the association. During the course of such\nexamination, the directors, officers, members, agents and employees of\nthe association shall make available all books, records, accounts,\ndocuments and agreements pertaining thereto. The superintendent shall\nfurnish a copy of the examination report to the association. Within\nthirty days after receipt of the report, the association may request a\nhearing on the report or any facts or recommendations therein. If the\nsuperintendent finds the association is not in compliance with this\nsection he may issue an order requiring compliance or discontinuance of\nsuch violation and the association shall be subject to the penalty\nprovisions of this chapter.\n (2) A director may be removed from the association's board of\ndirectors by the superintendent for cause, stated in writing, after an\nopportunity has been given to the director to be heard thereon.\n (e) In the absence of gross negligence, fraud, or bad faith, there\nshall be no liability on the part of and no causes of action of any\nnature shall arise against the association, its directors, officers,\nagents, or employees for any action taken or omitted by them in the\nperformance of their powers and duties under this section and\nsubsections (b), (c) and (f) of section two thousand one hundred\neighteen of this article.\n (f) The services performed by the association shall be funded by a\nstamping fee assessed for each declarations page, cover note or other\npremium bearing document submitted to the association. The stamping fee\nshall be established by the board of directors of the association from\ntime to time and shall be subject to approval by the superintendent. The\nstamping fee shall be paid by the excess line licensee. Provided,\nhowever, the licensee shall be allowed to receive and collect from the\ninsured the stamping fee if the licensee obtains a written memorandum,\nsigned by the insured, specifying the amount and the insured's agreement\nto pay the stamping fee.\n (g) Nothing in this section shall be construed to modify the\nobligation of an excess line licensee to comply with the provisions of\nsections two thousand one hundred five and two thousand one hundred\neighteen of this chapter, nor to diminish the power of the\nsuperintendent to take any other disciplinary action otherwise\nauthorized by this chapter.\n (h) The superintendent may declare an unauthorized insurer ineligible\nand order the association not to stamp insurance documents issued by\nsuch unauthorized insurer.\n (i) Compliance by the association with the duties set forth in\nsubsection (a) of this section in connection with filing, receiving,\nrecording and stamping of excess line insurance documents, as well as\nthe requirement to deliver standard forms for affidavits, may be\naccomplished by means of electronic or other media transmission,\nprovided that the superintendent first approves such methods of filing,\nreceiving, recording and stamping.\n * NB Expires July 1, 2029\n