Rescission of Obsolete Excess and Surplus Lines Bulletins - Updated Surplus Lines Information For Brokers and Insurers

www.ct.gov/cid P.O. Box 816 Hartford, CT 06142-0816 An Equal Opportunity Employer STATE OF CONNECTICUT INSURANCE DEPARTMENT Bulletin SL-1 November 17, 2009 TO: ALL SURPLUS LINES INSURERS, LICENSED SURPLUS LINES BROKERS AND INTERESTED PERSONS RE: RESCISSION OF OBSOLETE EXCESS AND SURPLUS LINES BULLETINS; UPDATED SURPLUS LINES INFORMATION FOR BROKERS AND INSURERS Obsolete Insurance Department Bulletins Please be advised that Insurance Department is hereby rescinding Bulletins EL-1 through EL-6 (Affidavits and Tax information) and Bulletins SL-15-96 through SL-15-99 (Exportable Lists) since they have become obsolete as a result of legislation, promulgation of Department regulations and/or changes in Department procedures. General Surplus Lines Topics This Bulletin is intended to provide updated guidance to surplus lines brokers and insurers concerning compliance with affidavit, tax payment and other insurance requirements applicable to surplus lines insurers and brokers. Current information can be found on the Department’s website concerning: • surplus lines applications and broker licensing fees • surplus lines premium taxes • the Exportable List under Conn. Gen. Stat. Section 38a-741 for which coverages are believed to be generally unavailable from licensed insurers • a listing of surplus lines insurers (the “White List”) Surplus lines broker information can be found generally in the Licensing Unit’s webpage. This information is provided in FAQ format. Surplus Lines Affidavit Information The Department would also like to remind surplus lines brokers of their responsibility under Conn. Gen. Stat. Section 38a-741 to fully complete and file the affidavit form (Form SL-8) with the Department within 45 days after the policies have been procured. Surplus lines brokers may place insurance with eligible surplus lines insurers only if a coverage, or a part thereof, after diligent effort has been made, is not available from licensed insurers or a residual market - 2 - mechanism and said coverage being placed with the surplus lines insurer represents only the excess over amounts procurable from licensed insurers. Affidavits are not required for risks appearing in the categories of the Department’s Exportable List (see below) that by their nature are deemed to be unavailable through admitted insurers or the Connecticut residual market. See Conn. Gen. Stat. Sections 38a-741 and 38a-794. The current Connecticut form of affidavit (Form SL-8) can be found on the Surplus Lines Broker Information web page. Surplus Lines Tax Information Information concerning quarterly tax filing requirements under Conn. Gen. Stat. Section 38a- 743, including forms, can be found on the Surplus Lines Broker Information web page. Surplus Lines Insurer Information An updated listing of surplus lines non-admitted insurers, the Exportable List and related financial requirements can be found in the Financial Regulation Division’s webpage at: Surplus Lines, Risk Purchasing Groups, Risk Retention Groups and Accredited Reinsurers. Links on this page for surplus lines insurers include: • Application to be an Eligible Surplus Lines insurer (Form SL-2) • Surplus Lines filing requirements and questionnaire (Form SL-4) • Forms SL-6 and SL-10 contained in Bulletin FS-4SL-08 Additional requirements are set forth under Conn. Agencies Regs. Section 38a-740-1 et seq. Surplus Lines Brokers and Insurers are encouraged to periodically review the Insurance Department’s website for changes and updates to the information provided in this Bulletin. For information related to Surplus Lines Broker licensing and Tax Return filings, you may contact the Connecticut Insurance Department’s Licensing Unit at 860-297-3845 (division menu) or by e-mail at cid.licensing@ct.gov. Information related to Surplus Lines Insurer requirements should be directed to the Connecticut Insurance Department’s Financial Regulation Division at (800) 203-3447 or by email at cid.financial@ct.gov. Thomas R. Sullivan Insurance Commissioner