The Connecticut Insurance Department published a bulletin announcing that the diligent effort requirement for placing surplus lines insurance is no longer required.
Public Act 26-69 amended the relevant statute, eliminating the diligent effort requirement, but now requires that surplus lines broker submit a report to the commissioner in a form and manner prescribed by the commissioner.
Despite the elimination of the diligent effort requirement, brokers are advised to take caution when placing business in the surplus lines market. The commissioner recommends that producers and brokers inform their insureds of the benefits and risks involved with the surplus lines market.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.