Monday, January 31, 2011
“While surplus lines brokers will benefit from the nationwide reforms that are intended to streamline excess and surplus lines insurance regulation, some states may not be in compliance with the NRRA when it takes effect, raising questions regarding a broker’s obligations under the new law,” said Richard Bouhan, NAPSLO Executive Director. “NAPSLO is issuing this general broker protocol to help brokers in all states understand what is required under the NRRA. While not a substitute for legal advice on specific situations, the guidelines will assist the broker in determining how to fulfill its obligations.”
The NRRA was part of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in 2010 and the provisions to make the insured’s home state the only regulator of a surplus lines transaction takes effect on July 21.
NAPSLO contracted with Dewey & LeBoeuf LLP to produce the NRRA Broker Protocol, which reviews the federal law’s impact on surplus lines brokers. These guidelines state, in general, that for nonadmitted business, surplus lines brokers must:
• Be licensed for surplus lines in the insured's Home State
• Comply with the placement requirements of the insured’s Home State
• Ensure that a diligent search has been conducted in compliance with the rules of the insured’s Home State
• Provide any disclosure/disclaimer required by the insured's Home State
• Place surplus lines insurance with insurers that are eligible in the insured's Home State
• Satisfy a broker's general liability standards for determining that insurers are financially sound
• Comply with all other placement requirements of the insured's Home State, such as any regulation of policy fees or surplus lines broker premium trust accounts
Regarding surplus lines premium taxes, the guidelines note that as of July 21 surplus lines brokers must pay premium tax only to the insured's Home State. Brokers will need to comply with the tax payment and premium reporting requirements of the insured's Home State, including determining if the Home State has enacted a new multi-state tax sharing system. In addition, brokers should consult with NAPSLO if the Home State requests that brokers pay tax directly to other states or are asked to provide a report on multi-state risks more frequently than on an annual basis because more frequent reporting of this information is not permitted by the NRRA.
“All states are working on bringing their laws into compliance by July 21 but with a limited amount of time left in many legislative sessions it is unclear whether all states will be in compliance on the effective date,” said Mr. Bouhan. “With this information, and a state by state list of state actions available on our website, we are working to make sure members have the information they need to deal with the new law.”
Thursday, January 27, 2011
The groups said that while major organizations comprising state legislators have coalesced around an interstate compact to address NRRA surplus lines insurance taxation and regulatory provisions some states may be hard-pressed to join the surplus lines compact in the first few months of the new year.
The letter said that the three groups plan to work towards enactment of the SLIMPACT tax allocation compact but urged Congress to extend the NRRA effective date for the its surplus lines/nonadmitted insurance provisions to at least July 2012.
Wednesday, January 26, 2011
Mr. Enright was a Director, President and Past-President Representative of the Florida Surplus Lines Association as well as serving as Director on the Board of Governors' for the Florida Surplus Lines Service Office. In addition, he was an active member of FAIA, NAPSLO and AAMGA. He graduated from Canisius College in New York, 1969 and began his insurance career as an underwriter trainee with USF&G in Buffalo and was later promoted to manager of USF&G's Fire, Marine and Multi-Line Department in Miami, FL.
Mr. Enright went on to become Vice President and Branch Manager of Dana Roehrig & Associates, a division of Swett & Crawford. In 1987, he established Enright & Bradley, Inc. and in May of 1992, formed Enright & Wilson, Inc.
Mr. Salladin took over a two person independent insurance agency in 1972, following the sudden death of his father. He had recently joined the firm and had little training or experience in insurance or running a business but managed to lay the foundation for what has become the largest privately-held independent wholesale broker in the country.
A memorial service for Mr. Salladin will be held at Five Farms of the Baltimore Country Club, 11500 Mays Chapel Road, Lutherville, MD at 1:00 PM EST on Friday January 28. The family will be available to receive visitors starting at Noon with a reception to follow. In lieu of flowers, donations may be made in his honor to Prostate Cancer Research at The Brady Urological Institute of Johns Hopkins School of Medicine or to The Humane Society of Baltimore County.
Monday, January 24, 2011
The event is presented by Philadelphia Insurance Companies and people interested can register online at no charge.
The panel will explore developments in and coverage considerations for cyber liability issues, including:
- Nonphysical business interruption;
- Network security and privacy;
- Electronic media;
- Cyber extortion;
- Customer notification requirements; and
- Public relations.
- Thomas Herendeen, Vice President, Management & Professional Liability, Philadelphia Insurance Companies;
- Mark Greisiger, President, NetDiligence;
- John F. Mullen Sr., Partner; Chair of Complex Litigation Practice Group, Nelson, Levine, de Luca & Horst; and
- Robert Parisi, Senior Vice President, National Practice Leader - Privacy & Network Risks, Marsh, Inc.
For more information about the webinar, please call (908) 439-2200, ext. 5561, or e-mail email@example.com
Tuesday, January 18, 2011
Currently NAPSLO have determined 13 states have made, or are in the process of introducing legislation. More information is available on the NAPSLO website under the New Statutes page of the New Surplus Lines Law section.
Tuesday, January 11, 2011
Taylor is the former Auditor of State where she served for four years. Prior to being elected Auditor of State, Taylor served two terms in the Ohio House of Representatives and was a member of the House Finance; Ways and Means; and Education committees. She began her career in 1990 with the accounting firm Deloitte and Touche before joining the regional firm of Bober Markey Fedorovich & Company in 1994, where she served as director of the firm's tax department.
Monday, January 10, 2011
The Dodd-Frank bill includes the NonAdmitted and Reinsurance Reform Act (NRRA), which was viewed as a non-controversial portion of the overall financial reform legislation. As a House bill Rep. Bachmann was a co-sponsor of the NRRA.
While Republicans are the majority party in the House of Representatives, Democrats retained control of the Senate and are not viewed as supporting repeal.
Friday, January 07, 2011
Texas Insurance Commissioner Mike Geeslin, who has overseen regulation of the insurance industry for more than five years, announced he was stepping down. In Wisconsin, Gov. Scott Walker appointed Ted Nickel as commissioner of insurance.
In a letter to the Texas Governor, Geeslin asked that he was stepping down when his term ends Feb. 1.
In Wisconsin, prior to being named Commissioner, Mr. Nickel formally worked as director of governmental and regulatory affairs for Merrill, Wisc.-based Church Mutual. Prior to Church Mutual, Mr. Nickel worked in former Gov. Tommy Thompson's administration.
With the NonAdmitted and Reinsurance Reform Act (NRRA) set to go into effect in July 2011, NAPSLO has been monitoring state legislators and regulators on changes to laws and codes as part of implementation of the new federal law.
NAPSLO has joined other industry trade groups to help educate legislators and regulators about the issues; is securing additional resources to monitor potential changes to laws on a state-by-state basis; and working with legal experts to obtain opinions on states’ ability to take action against members if laws are non-compliant.
In addition, NAPSLO is working to keep members informed of changes and they can follow changes through a new section added to the NAPSLO website, which reviews the NRRA and also legislative activity.
Members are encouraged to regulary review the section for information on changes in their states and efforts by industry regulatory groups to develop tax allocation systems.
Thursday, January 06, 2011
The first webinar, Save Time & Increase Profits with Real Time (sponsored by the Real Time/Download Campaign) is set for Jan. 12, from 2:00-3:00 p.m. EST
Demos, benefits & tips for successful Real Time implementation for new users, as well as agencies that want to increase utilization. Several different agency management systems and a comparative rater are demoed to show the industry wide movement to this more efficient workflow. Agent presenters will be: Cyndy Smith, Karen Youngman and John Heinsz.
To register, go to https://www1.gotomeeting.com/register/512031761
The second webinar, Implementing an Effective Information Security Program in your Agency, (sponsored by the Agents Council for Technology) will be Thursday, Jan. 13 from 2:00-3:00 p.m. EST.
The session outlines how federal and state law, as well as good risk management practice, have made it mandatory for agencies to implement an information security program that is anchored by a written security plan. The program covers the security risks agencies face, practical steps to take to manage these risks, and the free tools and articles that ACT has produced to assist agencies with their security program-- including a prototype agency information security plan. Agent and association presenters will be Steve Aronson, Ted Joyce and Jeff Yates.
To register, go to https://www1.gotomeeting.com/register/207427048
Tuesday, January 04, 2011
The regulation was originally amended in 2008. and a copy of the newest amended regulation and Concise Explanatory Statement may be downloaded or may be accessed on the Departments’ website at www.dbr.ri.us.