Industry Issues | Surplus Lines Reform

Minnesota Commerce Department Revises Bulletin FAQ Regarding Surplus Lines

Minnesota - UPDATE

The Minnesota Commerce Department (DOC) issued Administrative Bulletin 2018-1 related to designation of a disaster liaison, pre-disaster data survey, and post-disaster requirements. The bulletin was issued to all property & casualty insurers licensed in the state of Minnesota. This is consistent with the prior two years that this bulletin was sent out. Added to this 2018 bulletin, however, is a FAQ document that initially included the following:

Q: If our company is non-licensed or surplus lines company, but writes business in one or more of the lines specified by the Bulletin, do we need to submit the Pre-Disaster Survey?
A: Yes, if your company reports any premium on its statutory annual statement for any of the lines specified by the Bulletin, then you will need to submit the Pre-Disaster Survey Template.

PCI contacted the Department to question the inclusion of surplus lines insurers by use of this FAQ when the bulletin was, appropriately, limited to licensed and authorized insurers in the state.

As a result, the DOC implemented the following resolution: The Department has updated the FAQ document indicating that non-licensed or surplus lines companies that write business in one or more of the lines specified by the Bulletin, do NOT need to submit the Pre-Disaster Survey. The updated FAQ document is online and can be accessed here: http://mn.gov/commerce-stat/pdfs/disaster-faq.pdf.

Q: If our company is non-licensed or surplus lines company, but writes business in one or more of the lines specified by the Bulletin, do we need to submit the Pre-Disaster Survey?
A: No, you do not need to submit anything.