NAPSLO Applauds House Passage of Surplus Lines Reforms; Anticipate Quick Senate Action and Bill to be Signed Into Law

July 1, 2010 - Representatives of the National Association of Professional Surplus Lines Offices applauded the inclusion of surplus lines regulatory reform language in the version of financial services reform legislation passed by the House on Wednesday.

 

"NAPSLO is pleased that the surplus lines regulatory reform language was included in the financial services reform legislation approved by the House and NAPSLO believes that the Senate will adopt these reforms, shortly,” said NAPSLO Executive Director Richard Bouhan. “We believe we are now close to meaningful surplus lines regulatory reform legislation becoming a reality and then the work of implementing this legislation in the states will begin.”

 

The financial services bill includes language from the Nonadmitted and Reinsurance Reform Act which modernization surplus lines regulation and will make access for insurance consumers to the surplus lines market quicker and more efficient and the payment of surplus lines taxes, particularly on multi-state risks, easier and less burdensome for the surplus lines broker.

 

In addition, multiple, duplicative and overlapping compliance requirements will be eliminated on surplus lines policies that insure risks across state lines. The bill reduces surplus line broker costs by clarifying that only one state, the home state of the insured, regulates a multistate surplus line transaction. Currently multiple states regulate the placement of surplus lines multi-state risks. This will also benefit the insurance consumer who ultimately pays the price of the current dysfunctional and overlapping regulatory system for surplus lines insurance.

 

BACKGROUND
NAPSLO is a national trade association representing the surplus lines insurance industry. Risks are placed with the surplus lines market when they cannot be placed in the admitted/licensed market. NAPSLO represents surplus lines insurance agents/brokers and surplus lines insurance companies and has more than 1,600 member offices in the United States, Canada, Germany, and England.