Calif. Surplus Lines Sees Record Increase

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

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

SLA said its members processed a total of 278,613 insurance policies in the last 9 months compared to 222,392 processed in 2002.

"A third of this business was written for general liability coverage 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 by the state of California to negotiate and place insurance with nonadmitted insurers. Under state law, virtually all surplus lines policies are filed through the association to be reviewed for regulatory compliance. It serves as an advisory organization to the California Department of Insurance.

Special Reports /

Calif. Surplus Lines Sees Record Increase

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