Topic: Excess and Surplus Lines

LL Surplus Lines Series (Entry 21): Excess Line Association of New York Publishes “Compliance Advisor” Detailing Applicability of Various Laws to Excess (Surplus) Lines Market

One substantial area of ambiguity that permeates the surplus lines industry throughout the United States relates to the applicability of state law to surplus lines insurance carriers and brokers. This week, the Excess Line Association of New York (“ELANY”) published its “Compliance Advisor” intending, in part, to shed light on applicability of various New York statutes and regulations to the excess (surplus) lines market.

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LL Surplus Lines Series (Entry 20): UPDATE: NAIC Surplus Lines Task Force Tables Blanks Proposal for Home State Direct Premiums Written

Following comments by interested parties, including the American Property Casualty Insurance Association (APCIA) and the Excess Line Association of New York (ELANY), at the National Association of Insurance Commissioners (NAIC) Fall National Meeting in Austin, Texas, the Surplus Lines Task Force tabled its new Blanks proposal regarding home state direct premium written.

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LL Surplus Lines Series (Entry 19): Bulletin Issued Detailing Robust Surplus Lines Standards in Maine

On November 26th, Maine issued Bulletin 439 (the “Bulletin”) which provides, in granular detail, the criteria for placing insurance through the surplus lines market in the state. The Bulletin has received immediate and substantial attention within the surplus lines industry both for its thoroughness as well as its deviation, in some respects, from the expectations of other states.

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LL Surplus Lines Series (Entry 18): Surplus Lines Compliance – Does it Apply or Not?

The American Property Casualty Insurance Association (APCIA) published a bulletin on November 8 ‎regarding the California Department of Insurance (“CID”) issued legal opinion, which concluded that ‎the cancellation and non-renewal provisions under California Insurance Code (“CIC”) sections 677 and ‎‎678 apply to insurance policies written on risks located or resident in California by non-admitted ‎‎(surplus line) insurers that insure any of the contingencies specific in CIC section 675 (the “Opinion”).‎

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LL Surplus Lines Series (Entry 17): Idaho Proposes Updating Surplus Lines Laws to Alleviate Diligent Search Requirement

Idaho has seen an impressive surge of surplus lines business over the last year, reporting a 15.7% increase from mid-year 2018 to mid-year 2019, and is now proposing new laws to further drive the growth of its surplus lines market.[1] Pursuant to the Governor’s Executive Order 19-02, (the “Red Tape Reduction Act”), Idaho is rolling out revised regulations for public hearing on October 16, 2019, that provide updated procedures for the placement of surplus lines insurance in the state of Idaho.

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LL Surplus Lines Series (Entry 16): Expert Analysis – Disability Insurance in the Surplus Lines Market and Recent Legislative Updates

The Surplus lines market has traditionally been a method for insurance placement available to property and casualty products only, although states are increasingly opening up other lines of insurance to the nonadmitted market. For example, a growing number of states have either expressly or indirectly allowed for accident and health coverage to be written through the surplus lines market, and the National Association of Insurance Commissioners released guidance earlier this year advising the states on how to effectively legislate for the expansion of insurance lines that may be written on a surplus lines basis.

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LL Surplus Lines Series (Entry 15): Mid-Year 2019 Report Shows Impressive Surplus Lines Growth

As reported in the Insurance Journal, the surplus lines industry is expanding at an approximately 13% faster rate than it was during this time in 2018.  Stamping offices are indicating that premium has already hit $18 billion, a 12.7% growth over mid-year 2018 reports.  All surplus lines service office states except for Nevada have reported a growth in premiums generated by the surplus lines market.  Some of the major coverages that are being increasingly written in the surplus lines space and are contributing to this growth are construction, professional and general liability coverages.

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LL Surplus Lines Series (Entry 14): NAIC Surplus Lines Task Force Considers Blanks Proposal for Home State Direct Premiums Written

At the National Association of Insurance Commissioners Summer National Meeting in New York, the Surplus Lines Task Force discussed a new Blanks proposal regarding home state direct premium written.  The Task Force notes that the intent of the new Blank is to provide “a basis for state regulators to reconcile broker reported surplus lines premium with company provided information to better ensure that states are receiving the proper amount of surplus lines premium taxes.  Premium taxes on surplus lines premiums are based on the total policy premium and paid by surplus lines brokers solely to the “Home State” of the insured as defined in Section 527 of the Non-Admitted and Reinsurance Reform Act of 2010 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.” 

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