Year of Changes for SLA
What an exciting year of changes for the Surplus Line Association of California, At the beginning of the year we were faced with new disclosure statements and diligent search forms. In the spring we had the new financial requirements and filing procedures of Regulation 2174. This summer was a buildup of activity on the Codification Bill (AB 865) which Jerry Sullivan's Legislative Column describes.
An observation from my perspective about some of the doom and gloom talk of earlier this year. Many brokers voiced their concerns that the marketplace would contract and the volume would significantly decrease. Also, that the new disclosure land diligent search forms would drive large volumes to the admitted markets. Initially, I was feeling much-the same, but now see that our volume is actually up 12%. Many of the wholesale brokers report there are retailers that have adapted and will indeed do the additional paperwork. The new financial regulations (2174) did reduce the number of companies which for the most part was good for the consumers and brokers alike.
One last point on the diligent search forms. The California Department of Insurance (DOI) requires original signatures on the SL-1 and SL-2 that accompanies the declaration page going to the SLA office. This requires using the U.S. mail and precludes electronic facsimile transmission. We are currently discussing this issue with the DOI in hopes of allowing faxed forms and signatures. I will let you know how we do.
Our last issue of SLA Quarterly included a readership survey (Please see story in this issue) and I'm appreciative of those individuals that took the time to respond. Keep letting us know how we are doing and what we can improve on.
A couple of dosing comments on the Codification Bill. First, the SLA gives special thanks to the California Insurance Wholesalers Association (CIWA). CIWA was both supportive and active on our behalf. Their involvement was unquestionably helpful. Secondly, the SLA extends its congratulations to the entire membership of the Surplus Line Coalition for its work related to the passage of AB 865. The work to get this bill through was hard and, unfortunately, costly. We understand that the Coalition is seeking additional contributions from the brokerage community. If you have not done so, we urge you to financially assist the Coalition.
Any contribution should be sent to the following address:
Attn: Jorge Wong
P.O. Box 55012
Los Angeles, CA 90055