Thursday, November 12, 2009

Arkansas Proposes Changes to Surplus Lines Rule

The Arkansas Insurance Department has proposed changes to Rule 24 to clarify existing legislation regarding surplus lines insurance "in order to provide clear guidance to originating producers and brokers and surplus line brokers in Arkansas licensed."

A hearing has been set for December 16 at 10:00 a.m. at the department's office in Little Rock and the proposed revised regulation can be downloaded from the insurance department's website.

According to the department, Rule 24 provides direction regarding forms and documents necessary for proper reporting and accounting on property, casualty, surety and marine insurance issued by surplus line insurers through surplus line brokers.

Tuesday, November 10, 2009

NAPSLO Applauds Senate Banking Committee Action on Surplus Lines Reform

The National Association of Professional Surplus Lines Offices (NAPSLO) applauds the inclusion of the surplus lines reform language in the Senate Banking Committee’s Financial Services Reform legislation, entitled "American Financial Stability Act of 2009", which was released, today. NAPSLO thanks Banking Committee Chair Christopher Dodd (D-CT) and Ranking Member Richard Shelby (R-AL) and all of the members of the Committee for their work in incorporating the surplus lines reform language in this important financial services modernization legislation. NAPSLO also recognizes Senator Evan Bayh (D-IN) and Senator Mike Crapo (R-ID) as well as Senators Bill Nelson (D-FL) and former Senator Mel Martinez (R-FL) for their leadership and support in sponsoring this surplus lines reform legislation in the Senate.

The surplus lines reform language has already passed the House three times, most recently on September 9, 2009, without a single negative vote. NAPSLO expects these provisions to become law, shortly.When enacted the surplus lines modernization language will make the payment of surplus lines taxes, particularly on multi-state risks, more efficient and less burdensome to the surplus lines broker and will benefit the insurance consumer who ultimately pays the price of the current dysfunctional and costly tax remittance system. In addition, multiple, duplicative and overlapping compliance requirements will be eliminated on surplus lines policies that insure risks across state lines. The legislation also allows many commercial buyers easier access to the surplus lines market where coverage for difficult and hard to insure risks can be found.

“The Senate Banking Committee’s action is a giant step toward realizing the goal of a more efficient process for transacting surplus lines business for both consumers and insurance professionals,” NAPSLO President Marshall Kath stated.

Richard Bouhan, NAPSLO Executive Director said, “NAPSLO has been in the forefront of the effort to streamline the surplus lines marketplace for a number of years and we are beginning to see the ‘light at the end of the tunnel’ from this effort with today’s Banking Committee action.”

“We still have some distance to go, legislatively, before surplus lines regulatory reform is a reality, but we are well on the way to enacting this important insurance modernization legislation,” said Maria Berthoud of B&D Consulting who represents NAPSLO in Washington, D.C.

The bill contains a whole host of changes regarding the regulation of insurance and other financial services and NAPSLO will be reviewing those from the surplus lines perspective and commenting on them shortly.

Tuesday, November 03, 2009

California Stamping Fee to Increase in 2010

The Surplus Lines Association of California announced that the Executive Committee and Stamping Committee approved an increase in the stamping fee from .225% to .250% effective February 1, 2010.

All new policies, renewal policies, and extension endorsements with an effective date on or after February 1, 2010 will incur a stamping fee of .250%

The stamping fee for endorsements, audits, installments or cancellations (excluding extension endorsements) will be the same percentage as the inception date of the policy/certificate being endorsed.

If you have any questions please call Joy Erven, Director Stamping Office, at 415-434-4900 Ext. 105. You can also contact Pat McAuley, Data Processing Manager or Vienna Murray, Education Manager.