§ 2118. Excess line brokers; duties. (a) (1) Every licensee licensed\npursuant to section two thousand one hundred five of this article shall\nbe required to use due care in selecting the unauthorized insurer from\nwhom policies are procured under his license.\n (2) (A) No policy of insurance may be procured by a licensee from any\nforeign or alien insurer which is controlled, by a foreign government or\nby a political subdivision thereof, or which is an agency of any such\ngovernment or subdivision if the superintendent determines that: (i)\nsuch insurer receives a subsidy or other competitive advantage, as a\nresult of such control or status, that would enable it to compete\nunfairly with similarly situated insurers which are not so controlled or\nconstituted; (ii) such insurer is entitled to claim sovereign immunity\nas a result of such control and the insurer has not waived the sovereign\nimmunity; or (iii) the use of such insurer would be detrimental to the\ninterests of the people of this state.\n (B) No licensee shall be deemed to be in noncompliance with this\nsubsection unless: (i) the superintendent has made a prior determination\nthat the foreign or alien insurer from which the licensee procured a\npolicy of insurance should not be used as an excess line insurer in this\nstate in accordance with the provisions of this subsection; or (ii) the\nlicensee knew or should have known that such insurer should not be used\nas an excess line insurer in accordance with the provisions of this\nsubsection. The superintendent may promulgate regulations to provide\nguidance to the licensee.\n (C) Every such insurer shall otherwise satisfy all applicable\nrequirements for placement by an excess line broker.\n * (b) (1) Within forty-five days after a policy is procured, a\nlicensee shall submit the declarations page or cover note of every\npolicy procured under his or her license to the excess line association\nestablished pursuant to section two thousand one hundred thirty of this\narticle for recording and stamping. In the event that no declarations\npage or cover note is available to the licensee, within forty-five days\nafter the policy is procured, the licensee shall submit a binder to the\nexcess line association in lieu of such declarations page or cover note.\nIn the event that a binder is submitted to the excess line association,\nthe licensee shall submit the declarations page or cover note to the\nexcess line association promptly upon receipt. Every insurance document\nsubmitted to the excess line association pursuant to this subsection\nshall set forth:\n (A) the name and address of the insured;\n (B) the gross premium charged;\n (C) the name of the unauthorized insurer; and\n (D) the kind of insurance procured.\n (2) Subsequent endorsements which do not affect the premium charged\nare exempted from stamping.\n (3) (A) Except as provided in subparagraph (F) of this paragraph,\nsubmission of insurance documents to the excess line association shall\nbe accompanied by a statement subscribed to, and affirmed by, the\nlicensee or sublicensee as true under the penalties of perjury that,\nafter diligent effort, the full amount of insurance required could not\nbe procured, from authorized insurers, each of which is authorized to\nwrite insurance of the kind requested and which the licensee has reason\nto believe might consider writing the type of coverage or class of\ninsurance involved, and further showing that the amount of insurance\nprocured from an unauthorized insurer is only the excess over the amount\nprocurable from an authorized insurer. The licensee, however, shall be\nexcused from affirming that a diligent effort, as defined above, was\nmade to procure the coverage from authorized insurers if the licensee's\naffidavit is accompanied by the affidavit of another broker involved in\nthe placement affirming as true under the penalties of perjury that,\nafter diligent effort by the affirming broker, the required
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