Table of Contents
Section V - RISK PURCHASING GROUP CERTIFICATES
The Association has established the following procedures and guidelines for processing risk purchasing group certificates placed pursuant to Insurance Regulation No. 134:
- For master policies evidencing coverage for a purchasing group itself, a copy of the declarations page shall be submitted for recording and stamping as outlined in this manual.
- Certificates evidencing coverage for each member of a purchasing group are deemed to be cover notes and shall be filed and processed in the same manner as cover notes as outlined in this manual. The required notice of the nature of an excess line placement to the insured shall be filed for each insured member of the purchasing group.
- A single affidavit by an excess line broker, evidencing the requisite number of declinations, may be executed and filed by the licensee on behalf of more than one member of a purchasing group where liability insurance for such members was procured during the thirty days prior to the filing of the affidavit provided that such affidavit specifies all applicable information required in the affidavit for each such included member. An additional affidavit by an excess line broker, evidencing the requisite number of declinations must then be executed and filed by the licensee on behalf of those members of the purchasing group where liability insurance for such members was procured during each subsequent thirty-day period.
- The licensee, however, shall be excused from affirming that a diligent effort was made to procure the coverage from authorized insurers if the licensee’s affidavits are accompanied by the affidavit of another broker involved in the placement affirming as true, under the penalties of perjury, that after diligent effort by the affirming broker, the required insurance could not be procured from an authorized insurer.
- The affidavit filed by the excess line broker should have a distinctive numerical sequence apart from the non-purchasing group affidavit numbering sequence used by the excess line broker.
- For example, the initial purchasing group affidavit by an excess line broker should be numbered PG 1. Subsequent monthly affidavits by an excess line broker for the same purchasing group should be numbered PG 1A, PG 1B, PG 1C, etc.
For additional purchasing groups placed by the same excess line broker, the affidavit filed by an excess line broker should be numbered PG 2, PG 2A, PG 2B, etc.; PG 3, PG 3A, PG 3B, etc.
Last Reviewed/Revised: June 23, 2021