Lloyds California surplus lines status
Wed 01 Feb 2012
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California state
Surplus lines brokers can continue to place business with Lloyd’s syndicates
Lloyd's is aware that the California Surplus Lines Association ("CSLA") has just removed Lloyd's syndicates which are eligible to write surplus lines business in California from the List of Approved Surplus Lines Insurers ("LASLI") which is maintained by the CSLA.
Brokers should not be concerned as Lloyd's has been working closely with the CSLA and the California Department of Insurance ("CDI") in this regard, and as stated in the CSLA Bulletin, the decision was voluntary.
As brokers are aware, the Nonadmitted and Reinsurance Reform Act (“NRRA”), which was enacted as part of the Dodd-Frank Act, became effective on July 21, 2011. Pursuant to Section 524(2) of NRRA, no state may prohibit a surplus lines broker from placing nonadmitted insurance with, or procuring nonadmitted insurance from, a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC (the “IID List”).
Since Lloyd’s is domiciled in the United Kingdom and all Lloyd’s syndicates that write surplus lines insurance in the US appear on the IID List, Lloyd’s is an eligible surplus lines insurer in all States, including California.
All surplus lines brokers can continue to place business with all Lloyd’s syndicates that appear on the IID List.
As noted, Lloyd's made a voluntary decision not to be on the LASLI list, in consideration of the extensive filing requirements and because the listing is not legally required, and consequently unnecessary.
Notwithstanding, as an accommodation to the CDI, Lloyd’s has made a filing pursuant to Section 1765.1(c) of the California Insurance Code, which permits the Department to "recognize" Lloyd's syndicates in the event of an inquiry from a broker or a member of the public.
Further information
Brokers requiring further information may contact Lloyd’s America.
Telephone: +1 866 264 2533
Email: info.us@lloyds.com
Alternatively, brokers may wish to contact Carol Frair at the California Department of Insurance
Telephone: +1 415 538 4408 or
Email: Carol.Frair@insurance.ca.gov
