ATTACHMENT INCLUDED: NAIC Accepting Comments on Uniform Surplus Lines Reporting Form Until September 9, 2010

After undergoing development for the past two years, a Uniform Surplus Lines Reporting Form (“Form”) was presented at the National Association of Insurance Commissioners (“NAIC”) Surplus Lines Task Force (“Task Force”) meeting during the Summer National Meeting yesterday, August 18, 2010.   A completed copy of the Form is attached for review.

Interested party comment on the Form will be accepted by the NAIC until September 9, 2010.   All comments and/or suggested revisions should be returned via e-mail to either Bob Schump or David Vacca at their respective contact information below.

The Surplus Lines Task Force will review these comments and provide direction to the NAIC’s Multi-State Surplus Lines Premium Tax Working Group (“Working Group”), as well as consult with the new Executive Task Force on the reporting considerations.  The Working Group is partially charged with making a recommendation on the feasibility of creating a clearinghouse for multiple state surplus lines premium taxes.

Indiana Department of Insurance Deputy Commissioner Cindy Donovan, who chairs the Working Group, made the presentation, during which was reminded that, within one year, the surplus lines market will operate in a significantly different manner pursuant to the recently passed Dodd-Frank Wall Street Reform and Consumer Protection Act.

Jurisdictional procurement control, the reporting of policy information and premiums and the collection and allocation of premium taxes will be among the anticipated changes.  Possible solutions, such as the Uniform Surplus Lines Reporting Form, will affect brokers, stamping offices, state insurance departments and other state agencies that may need to alter their current processes.  It also was noted that, if used, the Form reporting system is likely to be electronic or Web-based.

Interested party comment on the attached Form must be e-mailed to either of the following NAIC staff members no later than September 9, 2010:

David A. Vacca, CPA
Assistant Director, Insurance Analysis and Information Services Department
NAIC Regulatory Services Division
Direct:  816-783-8134      Fax:  816-460-7809
E-mail:  dvacca@naic.org

Bob Schump, IID Manager
NAIC Insurance Analysis & Information Services Department
Direct:  816-783-8437      FAX:  816-460-0101
E-mail:  rschump@naic.org

Should you have any questions or comments, please contact Colodny Fass.