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House Passes Uniform Surplus Lines Insurance Reform
National News • June 26, 2007
The U.S. House of Representatives passed H.R. 1065, the Nonadmitted and Reinsurance Reform Act of 2007, legislation that if enacted, will help increase the efficiency of the existing state-based ...
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| Subject | Posted By | Posted On |
|---|---|---|
| Uniform Surplus Lines Insurance Reform | L J Battaglia | Jul 3, 2007, 1:27 pm |
| RE: direct access to the surplus lines market for sophistica | KLS | Jun 27, 2007, 2:18 pm |
| direct access to the surplus lines market for sophisticated | wondering | Jun 27, 2007, 8:42 am |
| Back to article | ||
Subject: RE: direct access to the surplus lines market for sophistica
An exempt commercial purchaser still has to go to the broker, however the broker doesn't have to satisfy the due diligence requirement. Thus the broker (not necessarily the insured) can go directly to the nonadmitted carrier to place the coverage as opposed to waiting for admitted carriers to decline to quote or write it.
A few states have always allowed independently procured insurance; and in some of those instances the insured has the option of paying the surplus lines tax directly to the state or having a broker do it for them.
Hope that clears things up for you. I'm very much in favor of this bill and I hope it passes the Senate. I also hope it opens the door for additional uniformity in Surplus Lines regs, or at least an Interstate Compact. Between the licensing, compliance details and tax reporting, it's a nightmare for brokers.