A.M. Best Webcast on Friday

Registration is still open for the A .M. Best Co. and NAPSLO Webcast entitled, "State of the Excess and Surplus Market" on Friday, September 25, from 11 a.m. to Noon (Eastern).

Registration is free and can be done online at Best's Conference Center.

Company leaders and experts in the specialty insurance market will discuss the findings of the annual report from A.M. Best and the Derek Hughes/NAPSLO Educational Foundation on the issues shaping the excess and surplus market and how companies are faring within it.

Speakers scheduled include:

• Steve DeCarlo, CEO, AmWins
• Neil Abernathy, CEO & President, Swett & Crawford
• Matt Power, EVP, Lexington Insurance Co.
• Joseph Roethel, Assistant Vice President, A.M. Best Co.
  

Topics will include:

• An analysis of the performance of the leading excess and surplus insurance coverage writers.
• An exploration of changes in the distribution environment and the roles of agents and brokers.
  

Attendees can submit questions or comments for the discussion by e-mailing news@ambest.com. Questions and comments will be discussed before and during the live event. Coverage of the Webcast will be featured in an upcoming issue of Best's Review.

Online Registration for Convention Ends on Friday

Online registration for the 2009 NAPSLO Annual Convention ends on Friday and members interested in attending the meeting, Oct. 7-10 in Orlando, will have to register on site after Sept. 18.

Nearly 2,700 people have registered for the meeting, which will take place at the Orlando World Center Marriott. Hotel rooms at the Marriott are sold out but rooms are still available at the Caribe Resort, located nearby. NAPSLO will operate a shuttle between the two hotels during the convention.

The convention's Opening Reception will take place on Wednesday, Oct. 7 and programs are scheduled for Friday and Saturday morning. Among the programs will be a speech Dr. Robert Hartwig of the Insurance Information Institute, a industry panel and a game show type of program featuring representatives of Baby Boomers and members of NAPSLO's Next Generation discussing workplace issues.

NAPSLO Encouraged About NRRA Prospects following House Passage

NAPSLO officials are encouraged about Senate prospects for the NonAdmitted and Reinsurance Reform Act of 2009 following unanimous approval by the U.S. House of Representatives on Wednesday.

"We are very pleased to see the strong support the House members gave the bill and we hope the Senate will follow suit," said NAPSLO President John Wood. "This is an important piece of regulatory reform that will help both consumers and the industry."

The NRRA (HR 2571, S 1363) is aimed at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform regulatory system, while preserving the role of the state regulator. The House overwhelmingly passed similar versions of the bill in the last two sessions of Congress. The Senate considered a similar bill in 2007 but it took no action prior to the end of the 110th Congress, requiring that the bill be reintroduced in the 111th Congress.

"This is the third time the House has passed this legislation. We are hoping the third time is the charm and the bill will be signed into law," said NAPSLO Executive Director Richard Bouhan. "These reforms and efficiencies are needed now."

Senators Evan Bayh (D-IN) and Mel Martinez (R-FL) introduced the Senate companion to the House-approved NRRA in early June. NAPSLO representatives have working closely with these leaders and other members of the Senate Banking, Housing and Urban Affairs Committee to encourage Senate action on the bill.

"We are encouraged by our discussions and look forward to the Senate passing the bill soon, whether as a stand-alone bill or in connection with other financial services & insurance reform proposals," said Maria Berthoud, Partner, B&D Consulting. "A number of proposals are being considered by the Senate and we believe the NRRA will be included as part of these reforms. Senator leaders know how important this bill is and recognize that it has broad industry support and the unanimous endorsement of the House."

House Expected to Approve NRRA on Wednesday

The House of Representatives is scheduled to vote on the NonAdmitted and Reinsurance Reform Act of 2009 on Wednesday and NAPSLO officials are hopeful the Senate will take positive action following the House's expected approval.

The House version of the NRRA (HR 2571) is one of 15 bills listed on the House of Representatives Suspension Calendar, which is generally used to quickly pass non-controversial bills. The vote is expected to be carried live on C-Span on cable and on its website at http://www.c-span.org/.

The NRRA (S 1363 in the Senate) is aimed at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform regulatory system, while preserving the role of the state regulator. In May, Reps. Dennis Moore (D-KS) and Scott Garrett (R-NJ), members of the House Financial Services Committee, introduced the bill, which has more than 20 cosponsors.

The House overwhelmingly passed similar versions of the NRRA in the last two sessions of Congress. The Senate considered a similar bill in 2008 but it took no action prior to the end of the 110th Congress, requiring that the bill be reintroduced in the 111th Congress.

Senator Evan Bayh (D-IN) and Senator Mel Martinez (R-FL) introduced the Senate companion to the House bill in June. NAPSLO representatives have been working closely with Senate leaders and other members of the Senate Banking, Housing and Urban Affairs Committee to encourage Senate action on the bill.

California court rejects submitting E&S carriers to double taxation

A California court released its ruling on Wednesday in Silvers v. State Board of Equalization that surplus lines insurers should not be subject to both surplus lines taxes and gross premium taxes. In the decision, Judge Holly Kendig rejected arguments to require surplus lines insurers with California insureds to pay both the 2.35% tax on gross premiums written and the 3.0% surplus lines premium.

The case involved a claim that, based upon a constitutional provision that imposed a tax on companies "doing business" in California, the State Board of Equalization should have been collecting from Lexington Insurance Co. and numerous other unnamed surplus lines carriers both the gross premium and surplus lines premium taxes as they were doing business in California.

Lexington argued that the legislative history and case law showed that the surplus lines premium tax was in lieu of gross premium tax. NAPSLO, the Surplus Lines Association of California, and others submitted amicus briefs supporting Lexington's position.

In a decision reached on Aug. 28, the Court rejected the plaintiffs' argument and held that the 2.35% tax only applies to admitted insurers doing business in the state and does not apply to surplus lines insurers such as Lexington.