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Bill

S 5310

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

2025 Regular Session Introduced by Jake Ashby and 4 co-sponsors

Allows a limited waiver of the diligent-effort rule for placing certain coverages with non-admitted insurers via licensed excess-line brokers.

COMMITTED TO RULES
0
WeVote Research Nonpartisan
Bill Summary · S 5310

Summary of S. 5310

Bill at a glance

  • Bill number: S 5310
  • Title: 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
  • Status: COMMITTED TO RULES
  • Introduced: February 20, 2025
  • Classification: Bill

What the bill would do (general intent)

  • The bill, by its title, would permit a waiver of the “diligent effort” requirement in certain limited circumstances.
  • The waiver would apply to insurance coverage placed by licensed excess line brokers with unauthorized insurers (i.e., non-admitted insurers not licensed to operate in the state).
  • In short: under defined limited scenarios, excess line brokers could place certain coverages with non-admitted insurers without meeting the usual diligent-effort prerequisites.

Note: The full text would specify the exact conditions, limitations, and procedures for when such a waiver could be used. The summary below reflects the information available in the bill’s title and related materials.

Key provisions and changes (as indicated by available information)

  • Authorization for a waiver of the diligent effort requirement in limited circumstances.
  • Target audience: licensed excess line brokers seeking to place certain insurance coverage with unauthorized/non-admitted insurers.
  • The bill designates the scope as limited, implying safeguards or conditions to prevent broad or inappropriate use (exact criteria to be found in the bill text).

The precise language, qualifiers, thresholds, and any reporting or regulatory requirements would be in the enacted text of the bill.

Who would be affected

  • Licensed excess line brokers (the bill’s primary agents for placing certain coverage).
  • Policyholders/insureds seeking coverage that would be placed with non-admitted insurers under the waiver.
  • Unauthorized insurers (non-admitted carriers) that would be involved in such placements.
  • Regulators overseeing insurance, particularly in areas governing excess and surplus lines and non-admitted markets.

Procedural and timeline aspects

  • Introduced: February 20, 2025.
  • Referral: Referred to the Insurance committee on February 20, 2025.
  • Floor actions (historical):
    • 2025-03-03: 1st Report Calendar 423
    • 2025-03-04: 2nd Report Calendar
    • 2025-03-05: Advanced to Third Reading
  • Committee status: Initially advanced to Third Reading; later listed as Committed to Rules (June 13, 2025), with the same status appearing in subsequent entries.

Sponsors and related bills

  • Primary sponsor: Jamaal Bailey
  • Cosponsors: Patrick M. Gallivan, Lea Webb, Jake Ashby, Anthony H. Palumbo
  • Related bills (prior-session or companion):
    • S 8128 (prior-session)
    • S 5896 (prior-session)
    • A 6060 (companion) — listed twice

Potential impact and considerations

  • Might broaden access to coverage for certain risks by allowing non-admitted carriers in limited cases, potentially expanding market options for insureds.
  • Could raise questions about consumer protections, given non-admitted markets typically involve different regulatory standards and guarantees.
  • Regulators may need to publish criteria, reporting requirements, or rulemaking to govern when and how the waiver can be used.
  • Financial and regulatory implications for brokers, including recordkeeping and disclosures, would depend on the final text.

Next steps

  • Review the full bill text to confirm the exact criteria for the waiver, any conditions or disclosures required, and any regulatory oversight provisions.
  • Monitor committee actions for amendments, definitions (e.g., what constitutes “limited circumstances”), and implementation timelines.

Compiled from official sources — confirm details with the bill’s official record.

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