California Governor Jerry Brown Signs Surplus Lines Association Backed Bill

October 9, 2017

Assembly Bill 1641, legislation offered and lobbied by the Surplus Line Association of California that is designed to give the California Department of Insurance more flexibility in deciding which coverages to add to the Export List, was signed into law by Gov. Jerry Brown.

The bill unanimously passed both chambers of the California legislature.

The new law will be crucial in ensuring coverage for commercial consumers and also for emerging new technologies, including high-speed rail and autonomous vehicles, as well as other large commercial projects, and new risks such as legal, recreational cannabis and cybersecurity risks, according to the SLA.

AB 1641 was introduced and sponsored by Assembly Insurance Chair Tom Daly, D-Anaheim.

Surplus Lines Association of California Executive Director Benjamin McKay

Surplus Lines Association of California Executive Director Benjamin McKay.

“We commend Governor Brown for signing this important bill,” Benjamin McKay, the SLA’s executive director, said in a statement. “The governor has demonstrated a forward-thinking vision and an embrace of innovation, and we are grateful to him for enacting this law.”

The Export List is a list of coverages, maintained by the CDI, which are eligible for placement in the surplus line market without the necessity of a broker obtaining three declinations from the admitted market. Coverages are placed on the Export List after the CDI holds a public hearing and determines that the coverages are not readily available in the admitted market.

The SLA operates as a self-governed private organization that serves as the statutory surplus line advisory organization to the CDI and facilitates the state’s capacity to monitor and direct surplus line brokers’ placements of insurance with eligible non-admitted insurers.

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