Florida Surplus Lines Service Office Board of Governors’ Meeting Report: January 23, 2012

 

Discussion on 2012 organizational objectives was the main focus of the Florida Surplus Lines Service Office (“FSLSO”) Board of Governors’ (“Board”) meeting yesterday, January 23. 

FSLSO Executive Director Gary Pullen advised the Board that the Non-Admitted Insurance Multi-State Agreement (“NIMA”) Clearinghouse effective date has been postponed to July 1st, 2012, inasmuch as a consensus on a Clearinghouse agreement has not yet been accomplished.

Although the State of Nebraska has indicated it will no longer participate in NIMA, its withdrawal is not expected to have a significant impact.  Representatives from Alaska, Connecticut and Hawaii have advised that their states will continue to participate.

Mr. Pullen also explained that the FSLSO would like to update its technology to the new “XML” system, which has been adopted by Mississippi, Nevada and Washington.  Expected to become the new standard, XML also will be used by the NIMA Clearinghouse.   Considered to be more efficient and appropriate, XML is designed to provide more secure data access for the broker community.  Anticipated transition costs include changes necessary to convert to the new format.  Activities such as training on the new system will be facilitated through webinars.

To establish beneficial relationships on behalf of the NIMA Clearinghouse operation, the FSLSO intends to stay involved in communications with state and federal regulatory offices.

In regard to the 2012 Legislative Session, HB 725 (and its companion, SB 938) and HB 245 (SB 578) are the only two pending bills that relate to the FSLSO. 

HB 725 includes language that would eliminate the statutory requirement that licensed surplus lines agents maintain a bond.  HB 245 would allow surplus lines insurers to participate in the depopulation of Citizens Property Insurance Corporation.

The next Board meeting is scheduled for April, although no specific date has yet been set.

Another Board meeting has been scheduled for July 25 in St. Petersburg.

In closing, R.C. Chaffin announced his resignation from the Board, but advised that he will continue to participate until his replacement has been selected.

The meeting materials are attached for review.

 

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

 

 

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