Florida Surplus Lines Service Office Issues Bulletin on Filing Multi-State Risk Policies Once Surplus Lines Clearinghouse is Operational
May 7, 2012
The Florida Surplus Lines Service Office (“FSLSO”) issued a Bulletin on May 4, 2012 to provide guidance on the filing of multi-state surplus lines policies issued or renewed on or after July 1, 2012, once the Nonadmitted Insurance Multi-State Agreement Clearinghouse becomes operational.
Specifically, this information pertains to policies in which Florida is deemed the “Home State” under provisions of the Nonadmitted and Reinsurance Reform Act and which include premium for an exposure in one or more states or territories.
The FSLSO Bulletin is reprinted below and attached in PDF format.
Should you have any questions or comments, please contact Colodny Fass.
TO: FLORIDA SURPLUS LINES AGENTS AND INDEPENDENTLY PROCURED COVERAGE (IPC) FILERS
FROM: GARY D. PULLEN, EXECUTIVE DIRECTOR, FLORIDA SURPLUS LINES SERVICE OFFICE
DATE: MAY 4, 2012
SUBJECT: FILING CHANGES ON MULTI-STATE RISK POLICIES FOR SURPLUS LINES CLEARINGHOUSE
The purpose of this bulletin is to provide guidance regarding the filing of multi-state surplus lines policies after the Surplus Lines Clearinghouse has become operational. This bulletin is specific to policies in which Florida is deemed the “Home State” under the provisions of the Nonadmitted and Reinsurance Reform Act (NRRA) and the policy includes premium for an exposure in one or more states/territories.
All multi-state policies issued or renewed on or after July 1, 2012, and any subsequent endorsements to those policies, in which Florida is deemed the “Home State” should be filed with the Surplus Lines Clearinghouse once it has become operational. Endorsements on multi-state policies with an effective date prior to July 1, 2012 should continue to be filed with FSLSO in accordance with the statutes in effect at the time the policy became effective.
As per the NIMA agreement, the Surplus Lines Clearinghouse will require brokers and IPC filers to provide the same data elements that are currently required by FSLSO for each policy filing. Furthermore, licensed brokers will be required to provide their National Producer Number (NPN) upon registration with the Surplus Lines Clearinghouse. This number is assigned by the National Association of Insurance Commissioner’s National Insurance Producer Registry and is unique to each producing entity. To find your NPN number, please visit: https://pdb.nipr.com/html/PacNpnSearch.html.
As of the date of this bulletin, the NIMA premium allocation formula has not been formally adopted by each of the participating states. Therefore, for multi-state policies issued or renewed with an effective date on or after July 1, 2012, agents and IPC filers should continue to use their current rating basis for allocation purposes until further guidance is provided.
Within the next week, the Surplus Lines Clearinghouse will provide further filing instructions for multi-state policies as well as information regarding batch filing via XML.
If you have any questions, please contact Clearinghouse staff at (877) 267-9855.
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