Procedural Updates
NFIP Reforms Have Support from Both Sides of Aisle
A recent survey shows that proposed reforms of the National Flood Insurance Program (NFIP) has bipartisan support.
According to Business Insurance, the survey, conducted by Public Opinion Strategies and the Pew Charitable Trusts, consisted of 1,000 respondents, and revealed that 74 percent supported three or more proposed reforms to the program. However, 82 percent could not say whether NFIP was in a deficit or surplus, even though the program has a debt of $24.6 billion.
The proposed reforms include the following:
- A plan that would require infrastructure in flood-prone areas to better withstand the impact of flooding
- Conservation buyouts, which means that homeowners could be compensated at pre-flood rates for their property so they can move to a safer location, if they so choose
- Requiring communities that have more than 50 homes that have been classified as having repeatedly flooded to invest in the future risk of flood
The survey proves that support and agreement over an NFIP overhaul exists regardless of region. Results were positive across the country, with a majority of respondents in favor of reform and proposed improvements to prevent future damage.
Understanding Domestic Surplus Lines Insurers (DSLI)
Housing and Insurance Subcommittee to Hold Hearing on NFIP
Jeb Hensarling (R-TX), Chairman of the US House of Representatives Financial Services Committee, has announced that the Housing and Insurance Subcommittee will hold a hearing titled, “Flood Insurance Reform: A Community Perspective.”
The subcommittee will discuss the National Flood Insurance Program (NFIP) from a community level, and it will examine any needed reforms that would increase transparency in claims and payments. The subcommittee will also discuss how a private flood insurance market could compliment or exceed the current NFIP plan.
The hearing will be held on Thursday, March 16, at 2:00 p.m. local time in Washington D.C.
Exempt Commercial Purchasers (ECP)
Notice of Proposed Stamping Fee Increase
The Board of Directors of the Surplus Lines Stamping Office of Texas approved a resolution in June 2015 requesting that the Commissioner of Insurance authorize an increase in the stamping fee rate up to 0.15% (0.0015) from its current rate of 0.06% (0.0006), as required under the Plan of Operation. The Plan of Operation can be referenced in 28 TAC §15.101.
As of this date, the formal request is before the Commissioner and under consideration. Commentary period will be through August 20, 2015.
The proposed effective date for the increase to 0.15% will be January 1, 2016.
EFS Access for Late Filing Report
It’s finally here – Late Filing Reports will be available online to agents/agencies filing through the Electronic Filing System (EFS) beginning with the September 2014 report. If we identified any late filings for you for the month, both the primary and secondary EFS contacts will be notified by email and they will be provided with a link to the report as well as a link to additional information concerning the report. The Late Filing Reports will no longer be mailed to you if you file electronically. The reports will only be available beginning with September, going forward. No reports prior to September will be available on the EFS website.
It is important that you keep the EFS contact information current. However, if you do not receive an email, you can still access the report(s) or check to see if you received one by going to Reporting, selecting EOM/EOY Reports, and then selecting Late Filing Reports. Any users, including agency principals, can access these reports as long as they have a valid user id and password.
If you require assistance accessing the reports, please contact the EFS Help Desk at (512) 531-1880.
Texas Mandatory Data Call Includes Surplus Lines Insurers
Texas has issued a data call requiring each insurer to report the “current average credit for excluding windstorm and hail coverage in the catastrophe area.” This requirement includes surplus lines carriers. The deadline for submitting completed data is December 31, 2013. Instructions and other details from the Commissioner’s Bulletin can be found here.
Mandatory Zip Code 01-01-2014
All policies, binders, cover notes, and date extensions filed with the Stamping Office on or after January 1, 2014 must include the zip code of the risk location, if the effective date of the policy is post NRRA (on or after 07/21/11). This requirement now applies to all lines of business, not just property. If the policy is covering multiple locations, you should enter the single Texas zip code that reflects the highest limit or greatest Texas exposure. It is not necessary to provide the zip code on endorsements, unless the risk location/exposure is changing. All zip codes must be valid Texas zip codes.
For questions, please call SLTX at (512) 531-1880.
Directions for Accessing Surplus Lines Eligibility List
This bulletin contains directions for accessing Surplus Lines Eligibility List from the Texas Department of Insurance:
SURPLUS LINES ELIGIBILITY LIST
In an effort to keep surplus lines agents up to date on eligible surplus lines insurers in Texas, the department has created an Excel Comma Separated Values (CSV) report that is updated daily directly from the department’s database.
With the addition of this report, the Quarterly List of Eligible Insurers will no longer be forwarded to the stamping office each quarter as this list supersedes the quarterly list. This live list of eligible insurers is updated daily and can be accessed on the department’s website at: https://appscenter.tdi.texas.gov/tdireports/p/externalReports
Please visit this webpage and click the hyperlink titled: “Various lists are available for download”, note the disclaimer regarding surplus lines insurers on this webpage. On the next page click to expand the “Regulated Companies” tab, and select “Surplus Lines”or “Active Syndicates” from the menu. Select the grey bar “Download Search Results in Comma Separated Values (CSV) Format” and at the bottom of the screen a dialogue box will appear where the report has been populated in Excel, click to view.
The information found in this report includes: TDI No., Company Name, Eligibility Date, Statutory Home Office City and State/Country and Contact Mailing Address for surplus lines insurers and Lloyd’s Syndicates by TDI No. and Eligibility Date. To view information contained in the spreadsheet, click on the title headings to expand or collapse each column with the cross bar that appears when hovering over the column dividing lines by double-clicking. The report may be saved and information searched by CTRL “F” to find a particular company. Please use an internet search engine as a resource for other Excel related questions when manipulating this report.
An additional supplemental report will continue to be published monthly to inform agents of additions, deletions, name, home office and mailing address changes that occurred in the prior month. This supplemental report will be available on the stamping office website as a bulletin when received from the department and will also appear in excel format.
Any questions regarding this bulletin or eligibility list should be directed to TDI.
TDI Reminder to Surplus Lines Agents Filing Policies with SLSOT
The Texas Department of Insurance (TDI) has requested that we distribute the attached notice to all surplus lines agents. For any questions concerning this bulletin, please contact Teresa Hudson, TDI, at 512-322-3535.
REMINDER TO ALL SURPLUS LINES AGENTS FILING POLICIES WITH THE SURPLUS LINES STAMPING OFFICE OF TEXAS (SLSOT)
Pursuant to Texas Insurance Code Section 981.105, a surplus lines agent must file a new or renewal policy with the SLSOT not later than the 60th day after the later of the effective date or issue date. Effective May 28, 2011, Section 981.105 specifies the regulatory remedies the commissioner may take for late-filed surplus lines policies. Section 981.105 provides two authorized remedies for surplus lines agents who file policies late: fees and enforcement actions. The authorized remedies the commissioner may take vary according to the date filed and the percentage of policies you filed late during the preceding calendar year. The following table summarizes the authorized remedies: