Florida Surplus Lines Service Office Board of Governors to Meet April 18; Discussion Continues on Nonadmitted and Reinsurance Reform Act Implementation

The Florida Surplus Lines Service Office (“FSLSO”) Board of Governors (“Board”) is scheduled to meet on Monday, April 18, 2011 at 1:00 p.m.  The agenda includes a discussion on the 2010 Audit Report and a legislative update.  Meeting materials are attached for review.

As discussed during the January 2011 Board meeting, the FSLSO is focusing on its business processes and technology that would be needed to implement the provisions of the Nonadmitted and Reinsurance Reform Act of 2010 (“NRRA”) and enable participation in a multi-state tax sharing arrangement through utilization of a national surplus lines tax clearinghouse.

The FSLSO is also contemplating the development of a response to a Request for Proposal issued by the National Association of Insurance Commissioners (“NAIC”) for a clearinghouse vendor to provide services pursuant to the Non-Admitted Insurance Multi-State Agreement, which would implement the NRRA.  Such services would include the provision of a filing platform and management system to collect and allocate multi-state policy premium tax payments.

Other FSLSO projects under consideration include:

• Development of capability for insurers and Independently Procured Coverage (“IPC”) customers to make batch filings via the Surplus Lines Information Portal.  This would make the FSLSO’s agent filing system available to insurer and IPC filers.
• Creation of functionalities or enhancements to facilitate the reconciliation of Lloyd’s binding authority contract business in the Variance application
• Development of a “tax status” and filing process for entities or coverage exempt from taxes, fees and assessments
• Development of capability to collect data on filings with no financial implication

At the January 2011 Board meeting, FSLSO Executive Director Gary Pullen also advised that work has begun on implementing the Surplus Lines Automation Suite implementation in California.  South Carolina also has contacted the FSLSO to express interest in its platform.

2011 FSLSO Committee Assignments

Chairman – David Holcombe
Audit Committee – Roy Fabry, Chair; Bruce Bowers, Terry Butler
Budget Committee – David Holcombe, Chair; R.C. Chaffin, Lorna Palmer
Compensation Committee – Daniel O’Leary, Chair; Lorna Palmer, Steve Finver
Investment Committee – R.C. Chaffin, Chair; David Holcombe, Keith Driggers

The FSLSO Audit and Compensation Committees will meet prior to the Board on April 18.  The Florida Surplus Lines Association will meet on April 19 at 9:00 a.m.

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