Michael G. Koziol, senior counsel and a director of the National Association of Independent Insurers (NAII), recently addressed a letter to the Pennsylvania Senate’s Banking and Insurance Committee, urging members to take action to remove “restrictive provisions” on surplus lines insurers.
Koziol indicated that the current regulations are at odds with most other states, and are adversely affecting the growth of an important sector of the insurance market. He cited the current crisis over terrorist coverage and the expansion of mold claims as examples of the need for surplus lines coverage. Claims involving terrorism, mold, asbestos, etc. are increasingly excluded from the standard insurance market.
He urged passage of Senate Bill 1424 which would modernize the regulations on surplus lines. He noted that, “currently, Pennsylvania is one of only two states still requiring that a surplus lines form be filed with the state. This places potential customers at a disadvantage those in other states are not under. Surplus lines uses the flexibility of form recognized in virtually all other states to tailor insurance contracts to the unique needs of each risk. This flexibility currently does not exist in Pennsylvania, since surplus lines companies are prohibited from deviating from forms used in the admitted market without prior approval.”|”pa, legislators, urged, ease, surplus, lines
Topics Excess Surplus Pennsylvania
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