E-News August 1, 2006

Approval of Surplus Lines Bill Viewed as Significant Step
The approval by the House Financial Services Committee of the Non-Admitted and Reinsurance Reform Act of 2006 (H.R. 5637) is being viewed as a significant step toward positive insurance regulatory reform by NAPSLO, which had notified the Committee of its strong support for the bill.

NAPSLO representatives testified in support of the bill before the House Financial Services Committee, Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises in June and following the approval by the subcommittee on July 19, sent a letter to the full committee expressing its strong support and offering to work to help get the bill approved.

“NAPSLO is pleased to offer our full support for this timely piece of legislation, and we look forward to working with the Committee as well as with the entire House of Representatives as this important initiative moves through the legislative process,” NAPSLO Executive Director Richard Bouhan said in a letter to the full committee.

The bill, introduced by Reps. Ginny Brown-Waite (FL) and Dennis Moore (KS) in June, would improve and streamline the regulation of non-admitted insurance and reinsurance. The approved amended version tightens the definition of a "qualified risk manager" that a commercial policyholder would have to employ in order to tap the nonadmitted market directly for coverage without having to first approach the admitted market.

Many of the bill's other provisions, including the creation of a uniform system of premium tax allocation and remittance, uniform standards for producer licenses, one-state compliance on multi-state surplus lines risks, and direct access to the surplus lines market for sophisticated purchasers are concepts long endorsed by NAPSLO and promoted with members of Congress during meetings over the past two years.

Legislative Tracking Service Offered
NAPSLO is now offering members access to a legislative bill tracking service so members can track current legislation at the state and federal level. 

Members can access the system from the Legislation/Regulatory section of the NAPSLO web site. To access, use the firm's Login and Password to login to the Netscan link page. Once there, follow the instructions to access the NetScan system where you will see the current legislative items NAPSLO is tracking.

On a daily basis NAPSLO monitors legislation in all 50 states and also at the federal level. After reviewing potential legislation that could impact the industry, NAPSLO will note bills that may be of interest to members.

The system allows members to read the bill, see the current status, the history and comments by NAPSLO staff. 

Broker's Lounge Meetings Made Easier with Zones
To help make setting meetings and finding other attendees easier in the Brokers' Lounge at the Annual Convention, NAPSLO will designate sections of the ballrooms at the Hilton Chicago by color and number color. 

For instance, the Grand Ballroom is the main area and is divided into Zones 1 (Green) and Zone 2 (Burgundy). The Grand Ballroom balcony is Zone 3 (Gray). Zone 4 (Gold), Zone 5 (Black) and Zone 6 (White) are in the international Ballroom.

Zones 1, 2 & 3 in Grand Ballroom areas will be open Wednesday through Saturday, Zones 4 & 5 will be open Thursday and Friday and Zone 6 will be open on Thursday.

For a diagram of the meeting areas, check the Meeting Zone page under Hotels in Annual Convention segment of Meeting section of the NAPSLO web site.

The NAPSLO Annual is scheduled for September 13-16 at the Hilton. More than 3,150 people have registered and it is expected to be the best attended NAPSLO convention in the Association's history.

Upcoming Events
Annual Convention * September 13-16 * Chicago
Advanced School * November 4-7 * Dallas
Committee Day * November 13-14 * Dallas
Mid-Year Educational Workshop * March 1-3 * Palm Springs, Calif.