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.
Friday, June 04, 2010
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
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
Tuesday, June 01, 2010
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.
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.
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