TN Insurance Bulletin (2014-06-26): Surplus Lines Filings for Single and Multi-State Policies

TO: FROM: DATE: SUBJECT: STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE INSURANCE DIVISION 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243 (615) 741-2176 BULLETIN SURPLUS LINES AGENTS AND INDUSTRIAL INSURED POLICYHOLDERS Julie Mix McPeak, Commissioner f 1'11.; U1,fJAk June~2014 SURPLUS LINES FILINGS FOR SINGLE AND MULTI-STATE POLICIES IN TENNESSEE The purpose of this bulletin is to provide guidance regarding the filing of single and multistate surplus lines policies where Tennessee is the Home State of the insured. This bulletin is specific to policies in which a NIMA participating state 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, regardless of their NIMA participation status. Tennessee recently joined the Nonadmitted Insurance Multi-State Agreement (NIMA) as an Associate Member. Associate Membership in NlMA provides that non-admitted single and multi-state policies where Tennessee is the "Home State" of the insured should be reported to the Surplus Lines Clearinghouse. Surplus lines tax payments for such policies will continue to be remitted to the TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE until further notice. No uayment of taxes shall be made to the Surplus Lines Clearinghouse. All single and multi-state policies issued or renewed on or after 10/1/14, and any subsequent endorsements to those policies, in which Tennessee is deemed the "Home State" of the insured should be filed with the Surplus Lines Clearinghouse. Surplus lines agents and industrial insured policyholders may begin filing transactions with the Clearinghouse on 10/1/14. Endorsements on single and multi-state policies with an effective date prior to 10/1/14 should continue to be filed with the TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE in accordance with the laws in effect at the time the policy became effective. 1 Furthermore, surplus lines agents and industrial insured policyholders should be aware of the policy data elements that will be required to make these filings with the Surplus Lines Clearinghouse as they may differ from the information currently required to be collected for each policy. A listing of the required policy data elements is posted at htt;p: //slclearinghouse.com/PolicyFilers/dataelements.aspx. Additionally, licensed surplus lines agents will be required to provide their National Producer Number (NPN) upon registration with the Surplus Lines Clearinghouse. This number is assigned by the National Insurance Producer Registry and is unique to each producing entity. To find your NPN number, please visit: https: 1/pdb.nipr.com/htmi/PacNpnSearch.html. Filers can submit policy data to the Clearinghouse using two different methods: SLIP or XML Batch Filing. XML Batch Filing allows filers to submit multiple transactions in a single upload through XML Batch Filing. For copies of the batch filing manual, schema, and sample files, please contact james Farmer with the Surplus Lines Clearinghouse at (877) 267-9855, ext. 116. Additional information regarding the new filing procedures for non-admitted single and multi-state policies, educational tools, and training opportunities for Clearinghouse customers will be forthcoming. Please visit the Surplus Lines Clearinghouse web site at www.slclearinghouse.com and sign up on the home page to receive email updates for upto-date information on webinars, registration, and other training opportunities. For additional information, you may contact the Surplus Lines Clearinghouse staff at (877) 26 7- 9855, option 1, or by email at info@slclearinghouse.com. Please contact Surplus Lines Section at (615) 741-1670 or email surplus.lines@tn.gov if you have any additional questions.