CIAB Begins Campaign For Surplus Lines Bill

WHITE SULPHUR SPRINGS, W.Va.–The Council of Insurance Agents & Brokers has urged members to begin writing their U.S. senators seeking passage of the surplus lines bill pending in Congress.

Thomas J. Rodell, CIAB chairman and senior vice president, called for the campaign yesterday at the opening general session of the Washington, D.C.-based CIAB's 94th annual Insurance Leadership Forum here.

Mr. Rodell, who is regional managing director for Aon Risk Services, asked members and carrier representatives to write their senators urging passage of the Nonadmitted and Reinsurance Reform Act of 2007 (S-929). The House version already passed is HR-1065.

“Surplus lines laws are arcane,” said Mr. Rodell. “This legislation has been passed by the House of Representatives twice. There is plenty of interest in the Senate Banking Committee, but we are facing a shortage of oxygen.

“What I mean by that is this issue can slip off the radar screen because senators are dealing with a number of issues such as TRIA, optional federal charter, catastrophic insurance, McCarran-Ferguson, to name a few. We must generate a depth of support for this legislation.

“If the people in this room do not take the time to show their support for this bill, reform won't happen,” he pointed out. “Multistate placement of insurance lines products are a bureaucratic and compliance mess.”

Under the bill, on multistate placements, the rules of the surplus lines insurer's home state would apply. The home state regulator would also be responsible for the collection of taxes and disbursement of those funds to the state where the risk is placed.

During the meeting copies of draft letters were distributed to attendees. Mr. Rodell urged those attending to take the letter back to their company's principal to write a letter to their senator.

He also urged attendees to use computers available at the meeting to send e-mails to their senators promoting passage of the bill.