Fronting by Excess Line Brokers.

November 8, 1982 SUBJECT: INSURANCE CIRCULAR LETTER NO. 26 (1982) DATED: NOVEMBER 8, 1982 TO: ALL LICENSED EXCESS LINE BROKERS SUBJECT: FRONTING BY EXCESS LINE BROKERS It has come to the attention of this Department that certain licensed excess line brokers have filed affidavits with this Department indicating the placement of insurance with unauthorized insurers although said brokers did not actually place the insurance. The aforementioned filings were made as an accommodation to brokers not licensed as excess line brokers in this State. You are advised that the filing of affidavits or the payment of taxes by a licensed excess line broker as an accommodation to anyone not licensed as an excess line broker in this State constitutes a violation of Sections 112 and 122 of the Insurance Law and Regulation 41 of this Department. Please acknowledge receipt of this letter to: Vincent G. Werling, CFE, CLU Associate Insurance Examiner Insurance Exchange & Excess Line Bureau New York State Insurance Department Two World Trade Center New York, NY 10047-0002 Very truly yours, [SIGNATURE] ALBERT B. LEWIS Superintendent of Insurance