P&CNew Yorkmedium
Under NY Insurance Law § 2118 and related provisions, an Excess Line Broker's oral binder of coverage with an eligible unauthorized insurer is generally:
AAlways unenforceable as a matter of NY law
Permitted as a temporary contract pending issuance of the written policy, subject to ELANY affidavit and statutory disclosure requirements
CPermitted only if the Superintendent personally approves each oral binder
DPermitted only for personal-lines homeowners risks
Why this is the answer
NY recognizes oral binders as enforceable temporary contracts of insurance pending issuance of a formal policy. For excess line placements under § 2118, the broker's binder is valid subject to the diligent-effort, ELANY affidavit, and statutory disclosure requirements (notice that the unauthorized insurer is not protected by PSIF). The same general principle applies in the admitted market under § 3115 and broader common-law binder doctrine, but for surplus lines the § 2118 compliance overlay is mandatory.
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