The Pennsylvania Department of Insurance issued notice
on October 26 that it has updated 31 PA. Code Ch. 124, their Surplus Insurance
Lines regulation. In general, these
changes are non-substantive and serve to update the regulation to reflect
current practice and procedures as well as some editorial changes. Some changes
reflect further implementation of the NRRA.
Of particular interest is the change to reduce required
documentation for foreign insurers to demonstrate eligibility. The Pennsylvania
Department will rely more on information available through the NAIC ISITE
system. In addition to their Certificate of Authority, foreign insurers only
need to submit their jurat page to the Department, rather than the entire
financial statement and supporting documentation. The Department continues to
be able to ask for additional information from the insurer if the Department
cannot determine if the eligibility criteria has been established from the
jurat page. The jurat page will also be sufficient for foreign insurers already
on the Department’s eligibility list, unless the Department determines from the
jurat that additional information is needed. Alien insurers should provide
written request along with evidence demonstrating they are listed on the NAIC’s
Quarterly Listing of Alien Insurers.
Additionally of note are changes related to diligent search
efforts. The updated code clarifies how a writing producer should document the
diligent search effort in the placement of a policy. At the beginning of the
year, the PASLA issued a Bulletin stating
the three required declinations do not need to be recorded on the required 1609-PR
form. On July 23, 2013 the Pennsylvania Surplus Lines Association issued a Bulletin
announcing that the required diligent search effort form 1609-PR now may be electronically signed.
The changes also codify the prior elimination of the bond
requirement.
A final revision of note is the change in procedures for
filing notice of placement of an exported coverage using form 1604-E in
lieu of providing specific documentation.
It is important to
note these changes do not go into effect for 30 days from the publication of
the notice and the PASLA and Department request you continue under current
requirements until then.
For current versions of the required forms, additional
information and questions, contact or visit the PASLA or the Pennsylvania
Insurance Department.
