California Increases Capital & Surplus Requirements

California Governor Arnold Schwarzenegger signed into law on Sept. 27 a bill that will increase the capital and surplus requirements for nonadmitted insurers.

Assembly Bill 1708 goes into effect on January 1 and it increases minimum capital and surplus requirements for nonadmitted insurers and insurance exchanges from $15 million to $45 million, with the amount of cash surplus increased from $15 million to $25 million.

Nonadmitted insurers on the list of eligible surplus line insurers who do not meet the capital and surplus requirements as of January 1, must have at least $30 million of capital and surplus as of December 31, 2011, and at least $45 million as of December 31, 2013.

Technology Program on Data Transfer Added to Convention

An update on current efforts to standardize data transfer between U.S. and London firms will be the subject of a special presentation added to the programming at the 2010 NAPSLO Annual Convention in Atlanta.

The program, London Technology Update – Standardizing Data Transfer Across the Pond, is set for Monday, October 11 from 1:00-2:00 p.m. (Convention registration opens that Monday at 9:00 a.m. and the Opening Reception is in the evening.)

The technology program will provide attendees a review of proposals by Lloyd’s of London to standardize data collection between U.S. and London firms; recent efforts by the Retail Agent E&S Working Group to involve London firms; and the Working Group's efforts to improve data transfer between firms in the U.S.

Adam Stafford of Lloyd’s will review current data standardization efforts in London and John Diebler & Angelyn Treutel, co-chairs of the Retail Agent E&S Initiative (a collaboration of NAPSLO, AAMGA, ACT and ACORD) will review the Joint Working Group's recent activities, including Lloyd’s joining the Joint Working Group, the establishment of a new Lloyd’s subgroup, accomplishments and goals.

A.M. Best to Review State of Industry During Sept. 20 Webinar

Availability, pricing and coverage trends will be discussed as Best's Review magazine hosts a webinar examining the current state of the excess and surplus markets on Sept. 20 from 2 p.m. to 3 p.m. EDT. Register at no charge by clicking the State of the Surplus Lines Market Link at http://www.ambest.com/conferences/webinars.html

Panelists from the specialty markets will discuss the impact of mergers and acquisitions and other developments affecting this fast-moving and important sector of the property/casualty insurance industry. The highlights of a new special report from A.M. Best Co. and the Derek Hughes/NAPSLO Educational Foundation on the state of the excess and surplus markets will also be reviewed.

The webinar will be presented in live video streaming and audio-only formats. The webinar panelists include:

• Matthew F. Power, Executive Vice President, Lexington Insurance Company
• Steven DeCarlo, Chief Executive Officer, Amwins
• J. Neal Abernathy, President & Chief Executive Officer, Swett & Crawford
• Joseph Roethel, Assistant Vice President, Property/Casualty, A.M. Best Co.
  

Topics will include:

• How companies in the excess and surplus sectors fared in the past year;
• How new federal legislation is poised to shape the sector;
• How the distribution environment is changing; and
• Emerging opportunities for agents, brokers and other insurance professionals.
  

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 webinar will be featured in an upcoming issue of Best's Review.

For more information about the webinar, please call (908) 439-2200, ext. 5561, or e-mail lee.mcdonald@ambest.com.

New Jersey Changes Limits on Fees

Effective October 1, 2010, New Jersey law was amended to change the limitation on fees surplus lines producers may charge an originating broker from $50 to an amount set forth by the Commissioner of Banking and Insurance pursuant to regulation.

The New Jersey Department recently issued a bulletin is to remind surplus lines producers that the $50 fee limitation remains in effect until October 1, 2010. The Department of Banking and Insurance said it anticipates proposing rules to implement the statute as amended later this year. The Department will issue further guidance on the implementation of the statute prior to October 1, 2010 based on the content of the rulemaking to be proposed.