Senate Committee OKs Financial Reform Bill

The Senate Banking Committee approved legislation on Monday to overhaul the nation's financial regulatory system by a 13-10 vote along party lines.

When the bill was introduced last week by committee Chairman Christopher J. Dodd (D-Conn.), surplus lines reform language was included in the legislation, entitled "Restoring American Financial Stability Act of 2010."

According to the Washington Post, the banking committee's 23 members -- 13 Democrats and 10 Republicans -- did not consider any of the major changes that had been proposed in recent days by lawmakers from both parties.

The Post said lawmakers had filed more than 400 potential amendments to the 1,336-page legislation. Ranking Republican Sen. Richard C. Shelby (R-Ala.) and Sen. Bob Corker (R-Tenn.), who recently failed to reach a bipartisan agreement in negotiations with Dodd, were responsible for roughly 200 of the proposed changes.

Arkansas DOI Adopts Amendments to Surplus Lines Rule

The Arkansas Insurance Department has adopted amendments to Rule 24. The amended rule provides direction on forms and documents necessary for the proper reporting and accounting on property, casualty, surety, and marine insurance policies issued by surplus lines insurers through surplus lines brokers.

The rule became effective upon approval by the Insurance Commissioner on March 10, 2010.

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 "Restoring American Financial Stability Act of 2010."

Banking Committee Chair Christopher Dodd (D-CT) and committee members worked to put together the financial regulation bill, released on Monday. The bill included surplus lines reform language from the Nonadmitted and Reinsurance Reform Act SB 1363 / HR 2571 which has already passed the House three times, most recently on September 9, 2009, without a single vote against it.

When enacted, the surplus lines modernization provisions 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.

“We are pleased to see the NRRA provisions included in the regulatory reform legislation on which Sen. Dodd and other Senate Banking Committee Members so diligently worked,” NAPSLO President Marshall Kath stated. “The NRRA provisions will enable the surplus lines industry to operate more efficiently and effectively.”

Richard Bouhan, NAPSLO Executive Director said, “With the inclusion of the surplus lines provisions in the financial reform bill we believe there is a great opportunity to see the NRRA enacted and then see the benefits in the industry.”

“We are eager to see Senate action on the NRRA as included in the regulatory reform legislation,” said Maria Berthoud of B&D Consulting who represents NAPSLO in Washington, D.C. “The NRRA language was included in the regulatory reform bill passed by the House in 2009. The surplus lines provisions have broad support in both Chambers and we expect that it will be in any final version of regulatory reform legislation.”

More than 550 Attend NAPSLO Mid-Year

More than 550 people attended the reformatted NAPSLO Mid-Year Leadership Forum in Scottsdale, Arizona March 3-6.

The meeting was reformatted this year to provide attendees additional time to meet with other members and programs were designed to focus on leadership issues. Nearly 200 people attended the main session, an Executive Session panel discussion on Friday morning with Neal Abernathy of Swett & Crawford, E.G. Lassiter of RSUI Group, John Latham of Markel Corporation, and Matt Power of Lexington Insurance.

Thursday's program was a Town Hall meeting with the NAPSLO Board of Directors and the operations and activities of the Association were reviewed.

Registration Deadline Extended until March 15 for Executive Leadership School

The registration deadline has been extended for two weeks to March 15 to fill the limited number of spots at the second NAPSLO Executive Leadership School, set for April 7-10 at the University of Virginia's Darden School of Business in Charlottesville.

Approximately 25 people have signed up for the intense three-day MBA Executive Level program at one of America’s leading universities. The school tuition is $2,995 and the brochure and registration materials for the school are available to download from the NAPSLO website.

This program, first held in 2009, was designed for senior-level members who wish to broaden their perspectives on important social, political, and economic issues influencing the insurance industry. Participants will enhance their leadership skills and become more able to effectively manage change at the personal, team, and organizational levels, and will return to their organizations with the tools and mindsets to think and act more strategically. Those who attend will develop the enterprise perspective required to make winning choices about running their businesses in today’s complex environment.