Rhode Island Amends Surplus Lines Gross Premium Tax to 4%

The Rhode Island General Assembly enacted into law Article 15 of House Bill 7397 Substitute A as Amended, which amends the Surplus Line Gross Premiums Tax to 4% on the gross premiums charged the insured by the insurers, less the amount of premiums returned to the insured, effective July 1, 2010.

The Rhode Island Division of Taxation issued a notice noting that for the period of January 1, 2010 through June 30, 2010 the Surplus Line Gross Premium Tax Rate was 3%. For the period of July 1, 2010 and thereafter the Surplus Line Gross Premium Tax
Rate is 4%.

The legislation requires that the Surplus Line Broker Estimated Tax Payments due October 30, 2010, December 31, 2010, and thereafter, reflect the 4% tax rate.

CY 2009 Form T-71A Surplus Line Broker Return of Gross Premiums and CY 2010 Form T-69ESSLBDEC Surplus Line Broker Estimated Tax Coupons are available on its website www.tax.ri.gov on the left click FORMS, then Business: Corporate Tax Forms. The CY 2010 Tax Return and CY 2011 Estimated Tax Forms will be available about January 1, 2011. The Rhode Island Division of Taxation does not print and mail forms.

Payment of the Surplus Line Gross Premiums Tax may be made by Electronic Funds Transfer. Questions regarding Electronic Funds Transfer (EFT) should be directed to (401) 574-8732.

More Than 1,000 Registered for NAPSLO Convention

More than 1,000 people registered for the NAPSLO Annual Convention, set for October 11-14 in Atlanta, during the first week of registration.

Registration for the convention opened June 15 and members can register online for the meeting, which will take place at the Atlanta Marriott Marquis and the Hyatt Regency Atlanta, by using the Registration link on the Convention webpage at http://annual.napslo.org.

Registration fees are $795 for Delegates and $395 for Spouses until September 1 and $895 and $425 after that date. Hotel rooms are available at the Atlanta Marriott Marquis ($219) and the Hyatt Regency Atlanta ($199). The two hotels are connected by a walkway.

NAPSLO Convention Registration Open!

Registration for the NAPSLO Annual Convention is now open and NAPSLO members can register online for the meeting, set for October 11-14 at the Atlanta Marriott Marquis and the Hyatt Regency Atlanta, by using the Registration link on the Convention webpage at http://annual.napslo.org.

Please note the following items regarding the convention:

• Registration fees are $795 for Delegates and $395 for Spouses until September 1 and $895 and $425 after that date.
• Hotel rooms are available at the Atlanta Marriott Marquis ($219) and the Hyatt Regency Atlanta ($199). The two hotels are connected by a walkway.
• NAPSLO will again offer Brokers' Club Tables in the Brokers' Lounge, located at the Atlanta Marriott Marquis. There are 40 private club tables and the cost is $1,750.
• William R. Berkley, Chairman & CEO of the W.R. Berkley Corporation presenting the Derek Hughes/NAPSLO Educational Foundation Lecture Series.
• The meeting will open on Monday, October 11 and the Opening Reception will take place that night at the Hyatt Regency Atlanta.
• The Next Generation group has set up a panel discussion in the afternoon, followed by a reception for Next Generation members.
• In addition to the presentation annual member awards and intern and ASLI graduate recognition programs will take place on Wednesday.
• A Happy Hour reception is set for Wednesday afternoon, prior to member private functions that night.
  

Lloyd's Joins Retail Agent - E&S Initiative; Webinar Set to Present Data Exchange Initiatives

The Retail Agent E&S Initiative (a collaboration of the IIABA's Agents Council for Technology, AAMGA, NAPSLO and ACORD) announced that Lloyd’s of London has joined the group and that a free webinar has been set for July 13 to review its proposals to standardize data collection from MGAs.

“We are pleased to add Lloyd’s to the list of U.S. retail agents, brokers, MGAs, carriers and vendors currently involved in the process,” says Angelyn Treutel, Retail Agent E&S Initiative co-chair and vice president of the Treutel Insurance Agency in Bay Saint Louis, Miss. “Our goal has been to ensure that all components of the transaction are involved in our discussions and Lloyd’s joining the process helps us meet that goal.”

Lloyd’s will be coordinating efforts to improve the efficiency of electronically transferring data from MGAs in the U.S. to the London market.

“North America is an important component of business for the London market and Lloyd’s is working on improving the electronic transaction of data on both binding and open market business, and thus believes it is important to be part of this joint industry group,” says Adam Stafford, senior project manager of Lloyd’s market operations.

Webinar
The Retail Agent E&S Initiative also announced that it will sponsor the following free webinar in which Lloyd's would present its current proposals to standardize data collection from its MGAs in the U.S.

TITLE: “Lloyd’s of London US Distribution Initiatives – Standards and Technology”
AUDIENCE: MGAs, wholesalers, retail agents, carriers & vendors participating in the E&S program and broker markets
PARTICIPANTS: Adam Stafford and Sarah Thacker, Lloyd’s of London; Mike Roy, CRC Insurance—Alabama; Angelyn Treutel, Treutel Insurance Agency; John Deibler, JBD Consulting; Jeff Yates, ACT
DATE: July 13, 2010
TIME:11:00 a.m. – 12:00 p.m. EDT
REGISTRATION: Go to https://www1.gotomeeting.com/register/234333792

Nevada Issues Bulletin on Annual Tax Statements

To clarify which brokers must file annual tax statements, the Nevada Division of Insurance has issued a bulletin stating that under NRS 685A.170 each Nevada licensed surplus lines broker must file with the Commissioner, on or before March 1st of each year, a statement of all surplus lines insurance transacted by the broker during the preceding calendar year.

The Department said this requirement applies to every surplus lines broker and that every surplus lines broker must file an annual tax statement, whether individual or firm, regardless of whether an individual licensee is affiliated with a firm or whether any business was actually transacted by the individual licensee or firm.

If an individual licensee is affiliated with a firm, the individual licensee only reports on his/her annual tax statement the policies written under the individual's license number. If the individual licensee only wrote policies under the firm's number, the individual reports $0 on their tax statement while the firm reports the entire number of policies written. Even if the individual or firm did not write any business under the respective broker's license number, an annual tax statement reporting $0 must be filed.

Pursuant to Bulletin No. 09-009, all annual tax statements must be filed using the Nevada Surplus Lines Association's ('NSLA') electronic system for filing annual tax statements. Please do not mail hard copies to the Division or the NSLA.

Questions should be referred to the Nevada Surplus Lines Association at www.nsla.org or (775) 826-7898.

Western States Surplus Lines Conference set for July 20-24 in Whistler

The Surplus Line Association of Washington will be hosting this year’s Western States Surplus Line Conference 2010. The conference takes place July 20-24 in Whistler, British Columbia.

The Western States Surplus Line Conference is an annual summer event with networking opportunities and professional presentations on current events in the surplus lines market.

Visit the Surplus Line Association of Washington’s website at www.surpluslines.org and click the link to the Western States Surplus Line Conference 2010 for more information, including the conference schedule, speakers, accommodations and optional activities.

Connecticut Issues Reminder Notice on Placing Business in the Surplus Lines Market

The Connecticut Insurance Department has issued a notice to surplus lines brokers concerning the placement of business, particularly along the Connecticut coastline, in the surplus lines market.

The Department said it had been apprised of situations where a surplus lines broker is placing a coastal risk in the surplus lines market despite the fact that the insured received a renewal offer from their existing Connecticut authorized insurer.

The Department notice was a reminder that all Connecticut licensed producers as well as Connecticut surplus lines brokers, that when an insured has been offered a renewal from their existing admitted insurers; any other Connecticut admitted insurer; or any residual market mechanism, it would be a violation of Connecticut statutes for the risk to be placed in the surplus lines market.

The department said that surplus lines brokers and producers should review Bulletin SL-1 dated November 17, 2009 at the following link: http://www.ct.gov/cid/lib/cid/BullSL1.pdf for Connecticut requirements for the placement of surplus lines business.

If the Department determines that a producer/broker is employing this practice it said it would undertake appropriate action against the Connecticut licensed producer or surplus lines broker as authorized under the provisions of Title 38a of the Connecticut General Statutes.

Additionally, the Department said that once a risk has been placed in the excess and surplus lines market, that the surplus lines broker is required to seek placement in the admitted market at each renewal and must fully complete a new affidavit verifying their attempt to place the account in the admitted market.

A copy of the form of Affidavit can be found at: http://www.ct.gov/cid/lib/cid/surlnsaff.pdf. Surplus lines brokers are also reminded that surplus lines brokers are required to keep a complete and separate record of all policies procured from unauthorized insurers that all such records shall be subject to examination by the Insurance Commissioner.

Questions concerning this Notice should be made to the Connecticut Insurance Department’s Property and Casualty division at: (860) 297-3941 or at: cid.pc@ct.gov.