Posted December 19, 2025, The Excess Line Association of New York (ELANY) posted an update from a previously posted bulletin (2025-08) on February 24, 2025.

This bulletin advised all excess line brokers that the position of the New York Department of Financial Services (DFS) holds that “Policy” fees payable to an excess line insurer are consideration for the policy and therefore subject to excess line tax. ELANY’s bulletin had provided a grace period for producers to work with insurers to amend standard documentation to clarify the tax status of the fee and had provided a deadline for correction of January 1, 2026.

ELANY often receives policy documents that incorrectly label fees intended for:

• MGAs
• MGUs
• Or other licensed intermediaries

as “Policy” fees rather than producer or broker fees which are not subject to excess line tax.

Please see the attachment for more information.

Our compliance experts are constantly searching for and analyzing industry updates. Their findings are then recorded in the Regulatory Updates section of the Compliance Library to explain how the update impacts the insurance industry. If a change impacts an AgentSync product, this will be highlighted to inform you that the product is being updated to ensure you remain in compliance.