When Lawrence “Mac” Wesson Jr., 2005-2006 president of the National Association of Professional Surplus Lines Offices, welcomed members to the organization's annual convention, held in September in San Francisco, he outlined several challenges NAPSLO faced this year. The least troubling one, apparently, was where to hold such meetings in the future. As participation steadily increases, he said, it becomes more and more difficult to find venues large enough to accommodate all the people and the programs offered. “When I joined the board, our attendance was around 2,000,” said Wesson. “This year we broke 3,100, which is amazing in any market condition.” Attendees filled all four official convention hotels and spilled over into several others. Wesson stated, somewhat unconvincingly, that he hopes not to face the same “problem” in Chicago in 2006.

Of greater concern, according to NAPLSO immediate past president Richard L. Polizzi, ASLI, are such issues as education, communication, growth and stability, and insurance-related legislation. Polizzi noted that more than 1,000 people have completed the educational program established by NAPSLO 15 years ago and known as E&S School, and many have gone on to graduate from the 10-year-old Advanced School. “This year we enlarged the school's capacity, and we still have waiting lists. The Advanced School set for November in Dallas is already sold out.”

Polizzi also reported that the association had expanded and upgraded its E-News electronic mailing to members and redesigned its newsletter and Web site (www.napslo.org) to make them more current and user-friendly. “We added a weblog, or “blog,” to the Web site to enable us to quickly post information for members to access,” he said.
Polizzi went on to assure members that the association is on “a financially sound path” as membership continues to increase. “Last year the number of main offices topped 800 for the first time, and we added several new firms this year,” he said. “Overall, NAPSLO now has more than 1,500 main- and branch-office members.”

At the legislative breakfast, NAPSLO Executive Director Richard Bouhan delivered mixed news from the legislative front. “Last year was dominated by state efforts to maintain E&S contingency agreements, despite [New York Attorney General] Eliot Spitzer's efforts to eliminate them,” he observed. The good news, for now, said Bouhan is that “nowhere has anyone eliminated contingency fees as a matter of law. Twenty states enacted disclosure regulations, and two states acted to exclude wholesalers from disclosure requirements. I don't think Spitzer is going to pass from the scene any time soon. He's shown what a hard-charging public servant can do, but while his intentions may be good, he's misguided. Someone just as well-meaning and forceful needs to speak out just as strongly to counter the misrepresentations he has created or reinforced.”

In that vein, Mr. Bouhan reported that NAPSLO had hired B&D Sagamore to monitor industry-related legislation and lobby on the association's behalf in Washington, D.C. He introduced Maria L. Berthoud, B&D Sagamore vice president, who will represent NAPSLO. Mr. Bouhan outlined Ms. Berthoud's extensive experience working on legislative issues affecting the insurance industry, including the Terrorism Risk Insurance Act and the Gramm-Leach-Bliley Act. Prior to joining B&D Sagamore, she served as senior vice president for the Independent Insurance Agents and Brokers of America, where she was responsible for all components of legislative lobbying efforts, including press strategy and government relations.

Mr. Bouhan said Ms. Berthoud's first priority will be working on Congressional action on the State Modernization and Regulatory Transparency (SMART) Act, which could overhaul insurance regulation and include federal standards for states' use. NAPLSO's official position favors national standards implemented by individual states, rather than federal regulation, and Ms. Berthoud will carry this message to Congress. She indicated she will focus on four main elements the association would like to see in future legislation: freedom of rate and form regulation, automatic export, uniform licensing and uniform premium tax payments.

“The Gramm-Leach-Bliley Act created a structure that includes federal government regulation in a big way and also facilitated discussion of federal terrorism reinsurance,” Berthoud said. “The treasury issued an unfavorable report on TRIA, recommending an extension but with much tougher terms. The overwhelming consensus is that state regulations need to be reformed, but I think we can all realize how dangerous federal regulation would be for NAPSLO members.

“What we assumed was in the state purview is now on Congress' agenda. Their interest in us is not just a passing fancy; they're in it for the long haul.”

She predicted that two insurance-regulation bills will be introduced to Congress in 2006, and something probably will be enacted in 2007, adding that the insurance industry's handling of Hurricane Katrina may influence future of state regulation.

NAPSLO's 2006 Mid-Year Workshop is set for February 16-19 in Phoenix, Ariz.

Special Reports /

NAPSLO cites progress on several fronts at annual meeting

Related Stories

Recommended For You