Calif. Surplus Lines Sees Record Increase

NU Online News Service, Oct. 20, 9:21a.m. EDT?The Surplus Line Association of Californiareported an 82 percent increase in processed surplus line premiumfor the first 9 months of 2003 compared to 2002.

Ted Pierce, executive director of the San Francisco-basedassociation, said the $3.88 billion in premium is attributed to thecontinued impact of the hard market. The association wrote $2.14billion in 2002.

SLA said its members processed a total of 278,613 insurancepolicies in the last 9 months compared to 222,392 processed in2002.

"A third of this business was written for general liabilitycoverage followed by commercial DIC [difference in conditions],stand-alone earthquake, commercial property, errors and omissions,and excess liability," Mr. Pierce said in a statement.

SLA is an organization of 650 surplus line brokers licensed bythe state of California to negotiate and place insurance withnonadmitted insurers. Under state law, virtually all surplus linespolicies are filed through the association to be reviewed forregulatory compliance. It serves as an advisory organization to theCalifornia Department of Insurance.