N.Y. Comp. Codes R. & Regs. tit. 11, § 301.5 – Location of a purchasing group.

(a) For the purposes of section 5909(a) of the Insurance Law, to determine when liability insurance from an unauthorized insurer for a purchasing group or its member must be obtained through an excess line broker, a purchasing group is located in this State:
1. (1) with respect to the purchasing group, when there is any solicitation, negotiation, issuance or delivery in this State of such group policy by, to, or on behalf of such group; or
2. (2) with respect to a member, when there is any solicitation, negotiation, issuance or delivery in this State of such member's policy.
(b) Notwithstanding the above, a purchasing group is not located in this State if, under the provisions of section 2117 of the Insurance Law, the use of an excess line broker is not required.