State of Washington Insurance Commissioner Mike Kreidler Issues Emergency Rules On Surplus Lines Brokers Due Diligence Certification Pursuant to Nonadmitted and Reinsurance Reform Act
Jul 21, 2011
Pursuant to the amendment of regulations RCW 48.15.040 and RCW 48.15.090 by the passage of HB 1694 (Chapter 31, Laws of 2011) State of Washington Insurance Commissioner Mike Kreidler has issued Emergency Rules stating that, instead of surplus lines brokers being required to file an affidavit of due diligence, they can now submit a certification as outlined in the Rules, effective July 21, 2011.
Unauthorized insurers must meet the minimum financial requirements before business can be placed with an insurer. These Emergency Rules will amend the existing Rules to conform to HB 1694’s statutory changes.
The permanent Rule is scheduled for completion by: October 31, 2011.
The Nonadmitted and Reinsurance Reform Act (“NRRA”) was enacted by Congress as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. The NRRA included sections on Surplus Lines insurance that pre-empt state laws. These provisions become effective July 21, 2011.
Chapter 31, 2011 (HB 1694) was enacted to conform Washington state law to the NRRA and made certain provisions effective on July 21, 2011 to coincide with the effective date of the NRRA.
The Emergency Rule is attached below.