Pennsylvania Gov. Mark Schweiker has signed House Bill 599, enabling surplus lines insurers to change or adopt new commercial policy forms without first getting approval from the state insurance department.
“Surplus lines insurers now will be able to adapt their policies quickly to better serve the particular needs of their commercial customers,” Michael Koziol, National Association of Independent Insurers (NAII) senior director and counsel, commented.
With Schweiker’s signing of HB 599, New Jersey now is the only state that still makes surplus lines insurer forms subject to the prior approval of the insurance commissioner. Koziol said NAII is seeking to get the New Jersey law changed to eliminate the prior approval requirement.
“Surplus lines insurers’ role as a relief valve to meet specific coverage that is not available elsewhere is impaired significantly when they can’t move quickly to adapt to changing conditions,” Koziol said. “Businesses and consumers are best served when surplus lines insurers are free to offer coverages that meet current needs.”
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