New Jersey Delays Change in Fees

The New Jersey Insurance Department has notified surplus lines producers that it has not completed updating rules on fees and that they should continue to adhere to the $50 fee limitation until further notice.

The department said it is continuing to work on rules to change the limitation on fees surplus lines producers may charge an originating broker from $50 to an amount specified by the Commissioner of Banking and Insurance.

In July, New Jersey law was amended to be effective October 1, 2010, to change the limitation on fees surplus lines producers may charge an originating broker from $50 to an amount set forth by the Commissioner of Banking and Insurance pursuant to regulation.

Registration Deadline Extended for NAPSLO's Advanced School

The registration deadline for the NAPSLO Advanced School, November 13-16, in St. Louis at the Eric P. Newman Education Center has been extended as a limited number of spaces remain.

The brochure and registration materials for the school can be downloaded from the NAPSLO website.

NAPSLO’s Advanced School offers a comprehensive look at surplus lines and provides the opportunity to meet with others in the industry. Completion of the NAPSLO E&S School is not a prerequisite to attend the Advanced School. The Advanced School is approved for 12 hours of CE credit in selected states.

The curriculum focuses on seven segments: The Broker/Underwriter Relationship - A discussion of the relationship between underwriters and brokers; Avoiding the Sting - Recognizing scams in the non-admitted market; Changes Following the Adoption of the Non Admitted & Reinsurance Reform Act - A discussion of the NRRA and other federal initiatives; The Claims Experience - A look at the surplus lines claims process, coverage and liability issues; Conquering Financial Statements - Reviewing financial documents, accounting and reporting procedures; The Devil's in the Details - Standards and procedures to reduce errors and omissions exposures; and Reinsurance & the Specialty Marketplace - Current issues, trends and the impact on the marketplace.

In addition, Matt Nichols, Chair of NAPSLO’s International Committee, will lead executives from the London, Bermuda and U.S. markets to discuss international issues during the International Panel; and Nicholas Cortezi, Chief Executive Officer, All Risks, Ltd. will present the Perspectives from the Top presentation.

California Increases Capital & Surplus Requirements

California Governor Arnold Schwarzenegger signed into law on Sept. 27 a bill that will increase the capital and surplus requirements for nonadmitted insurers.

Assembly Bill 1708 goes into effect on January 1 and it increases minimum capital and surplus requirements for nonadmitted insurers and insurance exchanges from $15 million to $45 million, with the amount of cash surplus increased from $15 million to $25 million.

Nonadmitted insurers on the list of eligible surplus line insurers who do not meet the capital and surplus requirements as of January 1, must have at least $30 million of capital and surplus as of December 31, 2011, and at least $45 million as of December 31, 2013.