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Newsletter

The Surplus Line Association of California
April 1998
388 Market Street . San Francisco, CA 94111 . Phone (415) 434-4900 . Fax: (415) 434-3716 visit our website @ www.sla-cal.org

Chairmanís Report

by William H. Newton

SLA is off to a great start. The first quarter 1998 was distinguished by several new developments. Our new executive director, Ted Pierce, assumed his position on January 26th. Ted has done an excellent job of keeping the executive committee up-to-speed on the weekly operations of SLA. Iím confident that the Associationís governance and structure are in good hands

On March 10, the Department of Insurance (DOI) held a hearing on proposed revisions of Regulation 2174, which would increase the initial filing fee for surplus line carriers from $1,500 to $4,500 and increase annual renewal filing fees from $1,500 to $2,250. No objection was raised to the increased fees but SLA did submit written comments relating to two items in the DOIís proposed revisions. The first being the need for a better definition and explanation of the relationship between document "submissions" and "filings" when non-admitted carriers submit documents to satisfy eligibility requirements. Our second comment suggested more specifics as to what documents should be filed in an annual renewal package and what documents should be filed as updates.

On the legislative front, the

SLA is currently tracking three bills in the Legislature relevant to surplus lines. These bills include S.B. 678 which would, among other things, delete the exemption from misdemeanors for advertising performed by surplus line brokers. Another bill, S.B. 237 would update the prior approval requirements for special lines surplus lines and yet another bill A.B. 1975 would clarify the definition of "surplus line broker."

Late Filings

by Judith Flowers
Manager, Data Processing

Late filings continue to be the number one reason for tag violations. A filing is considered late if a policy is not accompanied by the SL-1 and SL-2 forms and submitted to the Surplus Line Association (SLA) within 60 days of placing the insurance with a non-admitted carrier.

The tag violation reports that are generated by the SLA do not accurately reflect the number of late filings. In an effort to reduce the number of tags issued, the SLA created the repetitive error tag. When a broker has the same SL form errors that involve at least one third of the batch, we only tag five documents with the same error. The broker is advised that this is a repetitive error, and not every item in the batch with that error is tagged. (There are actually more late tag

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ProfilesÖ

By William Kelly
Human Resources Manager

Catalina (Lina) Aguila

DP Clerk, Data Processing Department

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In 1979, when Lina first came to the SLA, there were only 12 employees. The office was located at 50 California, just down the street and many moves back. There were no computers, voice-mail, or many of the things we take for granted today. Lina started as a file clerk but was promoted to a Coder/Key Punch Operator within a year. She has always been a part of the Data Processing Department.

Born in the Philippines, Lina came to the United States and directly went to work at the SLA in 1979.

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