Industry Issues | Surplus Lines Reform

NAIC Working Group releases revised draft of IID Plan of Operation

NAIC Surplus Lines (C) Working Group

The Surplus Lines Working Group met on January 30, 2018 to review comment letters received in response to draft revisions to the International Insurers Department Plan of Operation. 

Based on concerns raised by PCI, Lloyds of America, the Colorado Department of Insurance and other interested parties, the Working Group approved edits to the draft to clarify that final decisions made by the IID rests ultimately and solely with the regulators of the Working Group. Further, the final determination on any filed appeal to an IID decision would be made by the Property Casualty (C) Committee ("Appeal Committee").

The Working Group additionally revised the draft to set the maximum limit of the required trust fund to $250 million. The IID will also provide notice to an applicant of the application determination a minimum of ten calendar days in advance of the intended listing date.

Revised 2018 IID Plan of Operation

The revised draft is exposed for 14 more days, with any further comments due on February 19, 2018. The Working Group will seek to finalize the revised draft to the IID Plan on Operations on a February 27, conference call. If adopted, the revised draft will be referred to the Surplus Lines Task Force.