Lunsford, Flowers Selected As London, Bermuda Scholarships Recipients

Allyson Lunsford of Appalachian State University was selected as the 2012 Joseph H. Blades Memorial Scholarship recipient. Andy Flowers of Troy University was selected as the 2012 Bermuda Internship recipient.  Ms. Lunsford will receive a 3-week internship in London with a NAPSLO member firm and Mr. Flowers will receive a 3-week internship in Bermuda with a NAPSLO member firm.

Emily Crow, Brandon Dennis, Benjamin Delinski, Amanda Woods, Ms. Lunsford and Mr. Flowers were the six interns selected to attend the convention and were interviewed by the Internship Committee to determine the Bermuda and London scholars.

Intern Resumes

Intern resumes are available on the NAPSLO Web site at www.napslo.org, under the Internship section. NAPSLO member firm login and password are required. Interns participate in a comprehensive nine week program to gain experience working in various departments of both company and broker areas of business.

2012 Internship

The application deadline for the 2012 program is December 1. For more details and to apply online, visit: http://www.napslonextgen.org/Internship.html

NAPSLO Introduces Online Surplus Lines Compliance Course

NAPSLO is introducing the first truly online learning experience offered by the Association, the NAPSLO Surplus Lines Compliance Course. This course, offered through NAPSLO and Success CE at http://napslo.successce.com is available in both CE credit and no CE credit versions.

"NAPSLO developed the online course to provide industry professionals the background to assist them in dealing with the complex surplus lines regulatory issues," said Randall Jones, NAPSLO's new Director of Education as of Nov. 15. "NAPSLO saw the need for the course because there was limited educational courses on surplus lines compliance and we believe this will greatly benefit the industry."

Benefits
The course offers substantial benefits to organizations and professionals who operate within and navigate through complex excess and surplus lines regulatory issues. The course is targeted to professionals with less than two years of surplus lines compliance experience, and other professionals who deal less frequently with compliance issues.

Examples of learners who will benefit from this course include regulatory staff, brokers and their support teams, and others who place business in the non-admitted market.

Course Sections
The course includes four sections, and eight lessons, with learning objectives within each lesson. The course provides an overview of the E&S Industry and Surplus Lines Brokers and Insurers and teaches students the basics of Surplus Lines Broker Licensing and Record Keeping, Insurer Eligibility, Non-Admitted Compliance: Process and Procedures, Diligent Search, Tax Remittance, Policy Disclosure and Delivery, and Independent Procurement/Industrial Insured Exemption.

The course also covers the Nonadmitted and Reinsurance Reform Act (NRRA) and discusses NRRA/Exempt Commercial Policyholder (ECP) Laws.

The course contains an interactive glossary, links to excellent outside resources, sample state requirements, key general information for filings and reports, and lesson specific self-mastery tools, all packaged in an easy and fun to read format. Learners can also send specific course questions to education@napslo.org.

Students taking the course also may take exams for CE Credits and the course has been approved for 3 hours credit in most states, except for 2 hours in the State of Washington. When registering for the course students should check on the availability of CE credits in their state.

Cost & Registration
The cost of the course is $14.95 for the course and CE exams and credits, or $7.00 for the course only, no CE exams and credits. For a limited time, NAPSLO is providing a subsidy for all course costs. Please check for availability of this limited subsidy when registering for the course at http://napslo.successce.com. For more information on the course, download a flyer.

NAPSLO Joins Nine Other Industry Groups Urging NIMA States to Adopt the Kentucky Compromise for Allocating Surplus Lines Taxes

NAPSLO joined nine other industry trade groups in writing representatives of states who are part of the Nonadmitted Insurance Multi-State Agreement (“NIMA States”) to recommend their adoption of the allocation methodology proposed by the Kentucky Department of Insurance (“Kentucky compromise”).

NAPSLO joined the American Association of Managing General Agents, the American Bankers Insurance Association, the American Insurance Association, the Council of Insurance Agents & Brokers, the Independent Insurance Agents & Brokers of America, the National Association of Mutual Insurance Companies, the National Association of Professional Insurance Agents, the Property Casualty Insurers Association of America and the Risk and Insurance Management Society, Inc. in writing the letter urging adoption of the Kentucky allocation proposal.

The industry letter noted the Kentucky proposal would continue to require the allocation of casualty premiums on a state-specific or location-specific basis when a multistate policy’s premiums are determined on a state-specific or location-specific basis, but it permits the allocation of premiums to the home state if a single premium charge is applied and no location-specific rating occurs in connection with the placement. Industry groups previously voiced support for the Kentucky compromise in August writing representatives of the Surplus Lines Multistate Compliance Compact Commission (“SLIMPACT”) to urge the adoption of the Kentucky proposal. SLIMPACT members have stated their support of the plan. Many states revised their insurance laws this year for the purpose of compliance with the Nonadmitted and Reinsurance Reform Act (“NRRA”).

“We believe the Kentucky compromise is the option best suited and most likely to bring the various parties and interests together and produce the much-needed uniformity intended by the NRRA,” said David Leonard, Co-Chair of NAPSLO’s Legislative Committee. “We are most interested in working with states as we seek to realize the promise of uniformity while resolving the threat of unworkable allocation methods and competing tax sharing approaches.”

The Kentucky compromise includes refinements to the existing NIMA allocation method possessing considerable merit and meeting the needs of state officials without burdening companies, brokers and insureds with unnecessary and new data reporting requirements for the sole purpose of collecting taxes.

In contrast, the letter said that the NIMA allocation methodology would unavoidably result in new costs and fees, and would complicate, rather than simplify, surplus lines premium tax reporting and allocation procedures.

“The industry is concerned the NIMA allocation system would significantly expand the collection and reporting of information solely for tax allocation purposes,” said James Drinkwater, Co-Chair of NAPSLO’s Legislative Committee. “This represents new challenges, adds further complexity to the surplus lines marketplace, and exacerbates the burdens the NRRA was designed to relieve.”

To download a copy of the letter, CLICK HERE.