Tuesday, May 12, 2009

Rhode Island Eliminates Surplus Lines Broker Affidavit Filings

The Rhode Island Department of Business Regulation, Insurance Division, is reminding surplus lines brokers that Insurance Bulletin Number 2008-8 states that as of July 1, 2008, Rhode Island laws were amended to eliminate the filing of surplus lines affidavits.

The affidavits are still required to be executed by the insured and surplus lines broker – the change is only with regard to the filing of those affidavits with the Department. As a result the Department no longer accepts broker affidavits.

In lieu of the filing of affidavits, all surplus lines licensees must file a yearly report with the Department showing the business procured under the surplus lines license for the preceding calendar year.

Surplus Lines Brokers should use the form under Insurance Regulation 11, Exhibit C as a guide and add information such as the company name and contact information where appropriate. The first Surplus Lines Broker Annual Report filing is due April 1, 2010. There is no annual filing for 2009.

Surplus Lines Brokers who do not write any Rhode Island business in a calendar year are required to either complete the form included in Insurance Regulation 11, Exhibit C indicating that they are reporting zero premium or file a letter to that effect on letterhead.

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