California Stamping Fee Increasing to 0.25%

The Executive Committee and the Stamping Committee approved an increase in the stamping fee from 0.225 percent to 0.250 percent, effective Feb. 1, 2010, the Surplus Line Association of California announced.

All new policies, renewal policies, and extension endorsements with an effective date on or after Feb. 1, 2010, will incur a stamping fee of 0.250 percent. The stamping fee for endorsements, audits, installments or cancellations will be the same percentage as the inception date of the policy/certificate being endorsed.

The fee is being raised because the processed premium filed by the surplus line broker community is expected to drop significantly, according to Ted Pierce, a spokesman for the group. This is based on 2009 trends and a 2010 projection that includes premium volume considerations and overall economic activity.

The SLA serves as the statutory surplus line advisory organization to the California Department of Insurance (CDI) and facilitates the state’s capacity to monitor and direct surplus line brokers’ placements of insurance with eligible nonadmitted insurers.

Topics California