Tuesday, May 14, 2013

Alabama releases revised bulletin clarifying intent regarding Written Statements by Insured’s

The Alabama Department of Insurance has released Revised Bulletin 2013-03.  The changes come after comments from the surplus lines industry, including NAPSLO, regarding the requirement that the surplus lines broker obtain a signed written statement indicating they understand their policy was issued by a nonadmitted carrier.  The bulletin was clarified regarding the surplus lines brokers responsibilities. The insured’s insurance producer will provide them with a copy of the acknowledgment. They have 30 days to return the acknowledgment to the broker, who must maintain it on file. If the broker does not receive the written statement, they must follow-up once with the producer, asking for the insured to sign the statement. Proof of the original written statement and one follow-up from the broker in their file will satisfy the broker’s responsibility. The statement should not be forwarded to the Department. This bulletin  applies only to personal lines, specifically private passenger automobile, homeowners (owner-occupied), renters/tenants, farm-owner policies, condominium (unit owner), dwelling fire, and mobile home/manufactured housing property.  This Department categorized this Bulletin as a re-issued bulletin since it was originally required since 1992. This version of the Bulletin became effective May 1.

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