The Massachusetts Division of Insurance announced they will
begin accepting the Form BR-7 Affidavits for Insured electronically effective
January 1, 2014. The Division posted information onthis change to the new “2013 Surplus Lines Brokers Filing and
Instructions” page of theirwebsite. The Division does not intend to
issue a Bulletin regarding the electronic filling. Brokers will now be
allowed to retain the original “wet signature” Form BR-7 in their files and
deliver an electronic copy to the Division as outlined here.
additional information or questions, contact the Surplus Lines Auditor at the
Division of Insurance directly at 617.521.7415.
The Pennsylvania Department of Insurance issued notice
on October 26 that it has updated 31 PA. Code Ch. 124, their Surplus Insurance
Lines regulation. In general, these
changes are non-substantive and serve to update the regulation to reflect
current practice and procedures as well as some editorial changes. Some changes
reflect further implementation of the NRRA.
Of particular interest is the change to reduce required
documentation for foreign insurers to demonstrate eligibility. The Pennsylvania
Department will rely more on information available through the NAIC ISITE
system. In addition to their Certificate of Authority, foreign insurers only
need to submit their jurat page to the Department, rather than the entire
financial statement and supporting documentation. The Department continues to
be able to ask for additional information from the insurer if the Department
cannot determine if the eligibility criteria has been established from the
jurat page. The jurat page will also be sufficient for foreign insurers already
on the Department’s eligibility list, unless the Department determines from the
jurat that additional information is needed. Alien insurers should provide
written request along with evidence demonstrating they are listed on the NAIC’s
Quarterly Listing of Alien Insurers.
Additionally of note are changes related to diligent search
efforts. The updated code clarifies how a writing producer should document the
diligent search effort in the placement of a policy. At the beginning of the
year, the PASLA issued a Bulletin stating
the three required declinations do not need to be recorded on the required 1609-PR
form. On July 23, 2013 the Pennsylvania Surplus Lines Association issued a Bulletin
announcing that the required diligent search effort form 1609-PRnow may be electronically signed.
The changes also codify the prior elimination of the bond
A final revision of note is the change in procedures for
filing notice of placement of an exported coverage using form 1604-E in
lieu of providing specific documentation.
It is important to
note these changes do not go into effect for 30 days from the publication of
the notice and the PASLA and Department request you continue under current
requirements until then.
The Surplus Line Association of Illinois issued General Bulletin #40
stating proposals, endorsements, and other documents which are incidental to
the insurance but which do not affect the premium charged are exempted from
filing and countersignature and brokers do not need to file zero premium
endorsements. The elimination of this requirement is appreciated and will ease
some regulatory burdens of the broker. However, it is important to note brokers
continue to be required to file zero premium semi-annual tax statements in Illinois at this time. As
previously outlined, NAPSLO strongly advocates for all states requiring
zero premium reports to eliminate that requirement.