House Passes Uniform Surplus Lines Insurance Reform

June 26, 2007

  • June 27, 2007 at 8:42 am
    wondering says:
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    commercial purchasers…
    So the insured will go straight to Lexington etc. that sounds a bit unwieldy.
    And the insured will file the surplus lines taxes? And be an approved producer to the carrier?…questions…questions….

  • June 27, 2007 at 2:18 am
    KLS says:
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    That’s not the way I understand it.

    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.

  • July 3, 2007 at 1:27 am
    L J Battaglia says:
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    What?



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