NAPSLO Convention registration tentatively to start June 9

Online registration for the 2008 NAPSLO Annual Convention is tentatively set to begin June 9. Members will receive information via e-mail and postal mail regarding how to access the registration system.

Members will be able to register for the convention through NAPSLO's online registration system and also reserve a hotel room.

The convention is set for September 10-13 in San Diego at the Manchester Grand Hyatt and hotel rooms will also be available at the San Diego Marriott Hotel & Marina. Convention programs begin on Wednesday, September 10 with the Opening Reception and the Brokers' Lounge opens at Noon on Wednesday.

There are a limited number of rooms available on Tuesday night for people wishing to arrive prior to the start of the convention.

California Suit Questions Tax Payments

A lawsuit has been filed in the Superior Court of California in Los Angeles against the state Board of Equalization, Lexington Insurance Company and 500 unnamed firms regarding the nonpayment an annual tax traditionally imposed on admitted insurers.

In the case, Stephen F. Silvers and Steven J. Gold vs. State Board of Equalization, Ramon J. Hirsig, Lexington Insurance Company, and Does 1 through 500, the plaintiffs seek a judgment that Lexington and the other nonadmitted insurers included on California's List of Eligible Surplus Line Insurers are obligated to pay an annual tax that is imposed upon insurers doing business in the state.

The State Board of Equalization in California is responsible for assessing certain taxes against insurers doing business in California. In the court filing the plaintiffs allege that Lexington has owes more than $88 million in Section 28 taxes for the period 2003-2007.

A surplus lines tax applies to all surplus lines transactions and as a result surplus lines insurers have not had to pay the annual tax in question. The suit would require nonadmitted insurers to also pay the Section 28 tax, notwithstanding the fact that a surplus lines tax has already been paid.

NAPSLO visits Capitol Hill to promote S. 929

More than 20 NAPSLO representatives visited with members of the Senate Committee on Banking, Housing and Urban Affairs Tuesday regarding surplus lines issues and urged members to approve S. 929 (the Nonadmitted and Reinsurance Reform Act of 2007) and forward it to the full Senate.

The visits were part of NAPSLO’s annual “Day on the Hill” and members representing NAPSLO brokers and insurers met with Senators or staff from virtually all members of the Senate Banking Committee regarding surplus lines issues.

“Our meetings were very beneficial to NAPSLO and the Senators in reviewing current issues and we are hopeful that the discussions will lead to the approval of S. 929,” said NAPSLO Executive Director Richard Bouhan. “Passage of the bill would lead to improving the operation, efficiency, and regulation of the surplus lines market and also benefit consumers by making property/liability insurance more readily available and reduce the cost of compliance.”

Senators Mel Martinez (R-FL) and Bill Nelson (D-FL) introduced S. 929, the Nonadmitted and Reinsurance Act of 2007 in March 2007 and the bill was assigned to the Banking Committee. S. 929 is cosponsored by Sen. Mike Crapo (R-ID) of the Banking Committee and Sen. David Vitter (R-LA). The House of Representatives passed a similar bill (H.R. 1065) in 2007.

“Based on our discussions, we are hopeful that the Senate will hold hearings on surplus lines regulatory reform in the very near future,” said Mr. Bouhan.

The Nonadmitted and Reinsurance Act measure is aimed specifically at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform system, while preserving the role of the state regulator.