Consumer oriented reform of the surplus lines insurance marketplace is a step closer to reality through the introduction of the “Nonadmitted and Reinsurance Reform Act of 2007” (H.R. 1065) by Rep. Dennis Moore (D-Kan.), according to NAPSLO officials.
“NAPSLO welcomes Rep. Moore’s introduction of the bill, which is a needed piece of insurance reform legislation that will improve efficiency of the surplus lines insurance market and make property/liability insurance more readily available to consumers,” said NAPSLO Executive Director Richard Bouhan.
NAPSLO President William Newton stated that “This legislation will simplify the regulation of the excess and surplus lines business without diminishing consumer protections and provide consumers with more opportunities to secure property/liability insurance in areas where natural disasters have made insurance availability scarce.”
Rep. Moore and Rep. Ginny Brown-Waite (R-Fla.) submitted H.R. 1065, which also had several co-sponsors including Financial Services Ranking Member Rep. Spencer Bachus (R-Ala.), and Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises Chairman Paul Kanjorski (D-Penn.). The bill is similar to the “Nonadmitted and Reinsurance Reform Act of 2006" (H.R. 5637) that Rep. Moore cosponsored with Rep. Brown-Waite in the last legislative session. H.R. 5637 was approved 417-0 by the House in September, but wasn’t taken up by the Senate.
The legislation, in part, is aimed at making access to the surplus lines market easier for consumers and the brokers and agents who assist them. The “Nonadmitted and Reinsurance Reform Act of 2007” would establish national standards for state regulation of the surplus lines and reinsurance markets including a uniform system of surplus lines premium taxation, elimination of duplicative compliance requirements for multi-state surplus lines transactions and direct access to the surplus lines market for large commercial insurance buyers.
Mr. Bouhan testified before the Financial Services Committee in June 2006 to offer NAPSLO's support for the bill and said that the market access, tax and compliance concepts contained in the 2006 bill (and also included in the 2007 bill), were ideas long endorsed by NAPSLO and were essential marketplace reforms.
With the bill not being adopted last year, over the past two months NAPSLO and representatives of B&D Consulting, (the Association’s Washington representative) had contacted members of House Financial Services Committee and Senate Committee on Banking, Housing and Urban Affairs to urge Congress to enact the surplus lines and reinsurance reform bill.
Mr. Bouhan said that NAPSLO’s “top legislative priority” in this Congress is the passage of the ‘Nonadmitted and Reinsurance Reform Act” and added, “we are pleased that the first step has been taken, in the 110th Congress, to enact this legislation. NAPSLO hopes the House, again, endorses the bill and the Senate takes it up, shortly.”
Thursday, February 15, 2007
Wednesday, February 07, 2007
Maryland to allow electronic filing
The Maryland Insurance Articles regarding the method by which certain documents can be filed regarding placement of surplus lines insurance by a surplus lines broker were recently amended to permit the filing of a report, affidavit or return electronically, effective for the month ending January 31, 2007, according to a recent bulletin issued by the state.
To assist with this change, the Surplus Lines Affidavits, the related Premium Reports and Semi-Annual Surplus Lines Broker Gross Premiums Receipt Tax Report may be downloaded from the Administration’s website, under "Download forms" in the “Producer Services” section.
Surplus lines brokers may also submit information in an alternative format, as long as the same information is provided. Reports can be emailed in either PDF, Word, or Excel format, to the Administration at www.surpluslinefiling@mdinsurance.state.md.us.
Additionally, the administration amended state codes on Surplus Lines Affidavits to eliminate the requirement that a copy of the policy, cover note, certificate of insurance, memorandum of coverage, endorsement, cancellation, binder, or other initial confirmation and documentation of the coverage be filed with the Affidavit.
The Affidavit has been revised and now will require surplus lines brokers to attest that the requirements contained in Section 3- 306 of the Insurance Article have been met for all coverages placed with surplus lines carriers during the monthly reporting period. Additionally, a summary report of the coverages placed and the related premiums must be filed with the Affidavit.
To assist with this change, the Surplus Lines Affidavits, the related Premium Reports and Semi-Annual Surplus Lines Broker Gross Premiums Receipt Tax Report may be downloaded from the Administration’s website, under "Download forms" in the “Producer Services” section.
Surplus lines brokers may also submit information in an alternative format, as long as the same information is provided. Reports can be emailed in either PDF, Word, or Excel format, to the Administration at www.surpluslinefiling@mdinsurance.state.md.us.
Additionally, the administration amended state codes on Surplus Lines Affidavits to eliminate the requirement that a copy of the policy, cover note, certificate of insurance, memorandum of coverage, endorsement, cancellation, binder, or other initial confirmation and documentation of the coverage be filed with the Affidavit.
The Affidavit has been revised and now will require surplus lines brokers to attest that the requirements contained in Section 3- 306 of the Insurance Article have been met for all coverages placed with surplus lines carriers during the monthly reporting period. Additionally, a summary report of the coverages placed and the related premiums must be filed with the Affidavit.
Thursday, February 01, 2007
NAPSLO urges reintroduction of surplus lines bill
NAPSLO is contacting members of House Financial Services Committee and Senate Committee on Banking, Housing and Urban Affairs to urge Congress to enact the surplus lines and reinsurance reform bill introduced in the last Congress. The bill was passed 417-0 last September by the House, but died in the Senate.
In an open letter to members of both Committees, NAPSLO Executive Director Richard Bouhan said NAPSLO’s “top legislative priority in this Congress is the enactment of the ‘Nonadmitted and Reinsurance Reform Act of 2006’" (H.R. 5637 in the last session) and that “NAPSLO stands ready to do whatever is necessary to pass that legislation, again, in the House and, hopefully, in the Senate as well.”
Over the past two months, NAPSLO representatives, including Maria Berthoud of B&D Consulting, have met with top staff for House Financial Services Committee Chairman Barney Frank (D-Mass.), Ranking Member Rep. Spencer Bachus (R-Ala.), Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises Chairman Paul Kanjorski (D-Penn.), and most Democratic and Republican members of the Subcommittee to urge the bill’s reintroduction and passage.
Last year H.R. 5637 was introduced by Rep. Dennis Moore (D-Kan.) and Rep. Ginny Brown-Waite (R-Fla.) and, if approved, would have improved and streamlined the regulation of surplus lines insurance and reinsurance. NAPSLO believes such legislation would simplify the regulation of the excess and surplus lines industry and assist consumers, particularly in the storm ravaged sections of the nation, by making property/casualty insurance coverage more plentiful, Ms. Berthoud said.
The complete press release is available on the NAPSLO website.
In an open letter to members of both Committees, NAPSLO Executive Director Richard Bouhan said NAPSLO’s “top legislative priority in this Congress is the enactment of the ‘Nonadmitted and Reinsurance Reform Act of 2006’" (H.R. 5637 in the last session) and that “NAPSLO stands ready to do whatever is necessary to pass that legislation, again, in the House and, hopefully, in the Senate as well.”
Over the past two months, NAPSLO representatives, including Maria Berthoud of B&D Consulting, have met with top staff for House Financial Services Committee Chairman Barney Frank (D-Mass.), Ranking Member Rep. Spencer Bachus (R-Ala.), Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises Chairman Paul Kanjorski (D-Penn.), and most Democratic and Republican members of the Subcommittee to urge the bill’s reintroduction and passage.
Last year H.R. 5637 was introduced by Rep. Dennis Moore (D-Kan.) and Rep. Ginny Brown-Waite (R-Fla.) and, if approved, would have improved and streamlined the regulation of surplus lines insurance and reinsurance. NAPSLO believes such legislation would simplify the regulation of the excess and surplus lines industry and assist consumers, particularly in the storm ravaged sections of the nation, by making property/casualty insurance coverage more plentiful, Ms. Berthoud said.
The complete press release is available on the NAPSLO website.
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