Thursday, April 29, 2010

Registration Deadline for E&S School is May 14

Registration for the 2010 NAPSLO E&S School, June 22-25 at the Eric P. Newman Education Center in St. Louis, is underway and there is still space remaining available in the school.

The cost of the school is $1,200 and the registration deadline is May 14. Brochures and registration forms are available to download from the NAPSLO website.

The curriculum focuses on seven segments: Risk Takers - and various markets; Distribution System - purpose & variations; MGA's and Brokers - managing the business; Market Dynamics - changing environments; Cops - regulatory agencies, Where's The Money? - financial statements and accounting procedures; and a new topic this year, Marketing.

This year’s Executive Panel will feature David Norris, Senior VP and Property Department Manager, RSUI Group, Inc.; James Drinkwater, President-Brokerage Division, AmWins Group, Inc., Glen Curley, CPCU, ARe, President, Markel, Northeast Region and Loti C. Woods, CPCU, Co-CEO, McAuley Woods & Associates.

 The school will open with the Perspectives From the Top presentation, given by Matt Nichols, President, All Risks, Ltd.

The NAPSLO E&S School is designed for insurance professionals with less than five years experience in the surplus lines industry. Persons with more than five years surplus lines experience are encouraged to attend the NAPSLO Advanced School, offered each Fall.

Thursday, April 22, 2010

Louisiana House passes bill exempting surpus lines from rates and forms

Louisiana House Bill 285 by Rep. J. Kevin Pearson, which exempts surplus lines from filing rates and forms, has passed the state's House of Representatives.

The bill passed the House 83-0 and was forwarded to the Senate. The bill would exempt surplus lines insurance delivered by approved unauthorized insurers from laws regarding form and rate filing and approval.

HB 285 attempts to clarify the role of surplus lines insurance as complimentary to the "admitted market," while at the same time conserving the full regulatory authority of the Commissioner of Insurance over the surplus lines industry as granted by the Louisiana Insurance Code.

Surplus lines companies must meet strict eligibility and financial requirements of the insurance department before they can be approved to write in Louisiana. Once approved, they are placed on a list known as the "white list." Companies may be removed from the white list at any time, if they fail to meet the eligibility requirements, or the department feels they are not acting in the best interest of the insured, according to the LSLA.

David Tatman, a representative for the Louisiana Surplus Lines Association that between 2004 and 2006, in response to withdrawal from the market by admitted insurers, the surplus lines industry increased writings in Louisiana by 40 percent, according to tax figures provided by the insurance department.

Thursday, April 15, 2010

Pennsylvania issues bulletin on surplus lines filing responsibility

Because of confusion over some new developments, the Pennsylvania Surplus Lines Association has issued a bulletin regarding who is responsible for surplus lines filings to repeat that the party who represents the insured is still responsible for the Producer Affidavit, and the party who negotiated and bound the placement in the surplus lines market is still responsible for the Surplus Lines Affidavit.

A copy of the bulletin is available to download and anyone with questions is encouraged to review it.

The bulletin notes that surplus lines filings require 1) a producer who represents the insured AND 2) a surplus lines licensee who is empowered to enter the non-admitted, surplus lines market. This can be two different parties or one party functioning as both licensees.

Operating in the surplus lines market differs from the standard or admitted market where the producer represents both the insured and is also empowered to enter the ADMITTED or LICENSED marketplace. The difference is the Surplus Lines Law and its Regulations shifts responsibility from that of the carrier (which is non-admitted) to the licensee.

What is required is an electronic filing for each placement made, a monthly report stating all surplus lines transactions during the month, and an annual surplus lines premium tax report to the Department of Revenue at the end of each calendar year with a copy submitted electronically to PSLA.

Tuesday, April 13, 2010

Status of NAPSLO President Marshall Kath

NAPSLO members Colemont Insurance Brokers and AmWINS Group, Inc. have announced that they are combining their operations. NAPSLO President Marshall Kath, who served as CEO of Colemont, has resigned his position with that firm.

Mr. Kath will remain in the industry as an employee of another member NAPSLO firm and will continue his duties as a Director and also President of NAPSLO.

Friday, April 09, 2010

Webinar on April 19 to review joint E&S technology initiative

Agents, brokers, MGAs, E&S carriers, and program managers are encouraged to sign-up for a free webinar on April 19 from 2:00 - 3:00 p.m. (Eastern) to learn about the latest developments regarding the Joint Industry Initiative on connecting the various partners in the E&S industry via technology.

To register for the free webinar go to

The webinar will feature the leaders of the Retail Agent-E&S Initiative and will focus on the latest industry developments (both accomplishments and next steps) in improving the efficiency of the E&S market The session also will encourage more retail agents and E&S market players to get involved and help shape the changes.

The session builds upon the recent session at the AAMGA Technology Conference and is the first step in the group's increased marketing effort. Please promote the event to colleagues and business partners who need to know more about the progress being made, so that they can be involved in making these "ease of doing business" enhancements.

After registering you will receive a confirmation email containing information about joining the Webinar. After you logon to the Internet session, you will be able to listen to the audio through your computer headset or speakers. If you would prefer, you will also be provided with a toll number you can call to listen to the audio.

The system requirements for PC-based attendees are Windows® 7, Vista, XP, 2003 Server or 2000. For Macintosh systems requirements are Mac OS® X 10.4.11 or newer.

Tuesday, April 06, 2010

Illinois SLA Launches New Video Series

The Surplus Line Association of Illinois has launched a new series of training videos. The videos were developed for training licensees and clerical staff.

The series of 16 different videos covers various topics from membership forms, to SLA's electronic filing system, to filing of tax statements. They range in length from about three to 10 minutes and can be accessed online from the SLA Web site.

The videos can be viewed as a refresher on a particular topic, or new staff members can watch the complete series as a part of their training.

The Surplus Line Association of Illinois welcomes feedback on the videos.

Thursday, April 01, 2010

Alabama issues bulletin removing diligent effort requirement for some policies in coastal areas

Because of difficulty in finding property coverage against damage from wind or hail in some coastal parts of the state, the Alabama Insurance Commissioner issued a bulletin in late March saying that the “diligent effort” requirements can be met without obtaining declinations in certain parts of the state.

The bulletin (No. 2010-01), from Commissioner Jim Ridling, outlines that declinations are not needed if the insured is seeking personal or commercial property insurance coverage against destruction of, or damage to, property caused by wind or wind events and hail, and if the property to be insured is located within an area in Baldwin or Mobile County, south of the southern right-of-way line of Interstate 10.

The department said the bulletin is intended to be temporary and the producer or surplus lines broker is expected to verify and document that a proposed risk satisfies both criteria.