Industry Issues | Surplus Lines Reform

North Carolina DOI Issues Surplus Lines Insurers Data Call

NORTH CAROLINA 

FYI -
PCI received confirmation from members that certain surplus lines insurers have received a request for premium data from the North Carolina Department of Insurance. This data will be used by the Department to compare the amounts reported by the insurers to the amounts coming through the Department's internal system which are reported by surplus lines producers.    
 
Notified companies are requested to send a report to the Department showing the agents or brokers producing business in North Carolina for the surplus lines company (or companies) for the five calendar years 2013 through 2017. Company data submitted in previous data calls for the 2013 to 2016 calendar years do not have to be re-submitted.  
 
According to the notice email, the report should show the Direct Premiums Written by each producer, with the total by year matching the total reported on the company's Annual Statement's "State page" for North Carolina for that year (or with an explanation on why there is a difference). The report should include any business written for a RRG (risk retention group), PG (purchasing group), or "independently procured" (where the insured contracted directly with your company). If the policy is "independently procured" then please highlight that data, perhaps in a different color or different font.
 
For each premium received, the report should provide: the name of the agent or broker's name; a contact person's name; their phone number or email address at that producer; a policy number; a policy effective date; and the premium amount.   
 
The DUE DATE for the report is Wednesday, August 1, 2018.  
 
Specific questions on the data call are to be directed to Arthur J. Schwartz, Associate P&C Actuary, NCDOI, 919-807-6646, Arthur.Schwartz@ncdoi.gov.


North Carolina DOI Updates Business Insurance Consumer Guide

State Regulatory Update - North Carolina

Over the past year, PCI has pursued changes to the introduction section of the North Carolina Consumer's Guide to Insurance for Your Business, published by the Department of Insurance. PCI identified numerous instances of misused terms and phrases that could cause confusion about the surplus lines market. 

The DOI has agreed to revise language to reference the surplus lines insurer as a "nonadmitted" rather than an "authorized" insurer. Wording was updated to more accurately reflect that the consumer purchases surplus lines insurance through a licensed surplus lines broker. Additionally, the revised section refers to a nonadmitted insurer that is able to write surplus lines insurance in the state as an "eligible surplus lines insurer."

Guide to Insurance for Your Business

Additional NCDOI resource:
Consumer Guide to Surplus Lines Insurance


PCI Contacts DOI Regarding Request for Surplus Lines Data

PCI contacted the head of the North Carolina Department of Insurance's Property & Casualty Division to raise concerns about the surplus lines insurer data request, the filing time frame and the burden to pull the required data detail.

The Department stated this request was considered an update to an insurer survey conducted previously by the Division's actuary. But if a company needs additional time beyond the April 30 deadline, the Department is willing to grant a filing extension at the company's request.

No statutory citation has been provided for the data call.


North Carolina DOI Requests Surplus Lines Insurer Producer-Policy Detail Report

In a broadcast email that went out on March 18, 2013, to surplus lines insurers writing in North Carolina, the Department of Insurance announced that it is researching premium data for surplus lines insurers supplied to the Department by the NAIC.

Recipients of the email are requested to send in "a report showing the agents or brokers producing business in North Carolina for your surplus lines company (or companies) for the five calendar years 2008 through 2012. The report should show the Direct Premiums Written by each producer, with the total by year matching the total reported on the Annual Statement’s “state page” for North Carolina for that year. The report should include any business written for a RRG (risk retention group), PG (purchasing group), or “independently procured” (where the insured contracted directly with your company). "

The request further requires that for each premium received, the following should be provided: "the name of the producer; a contact person’s name; their phone number or email address at that producer; a policy number; a policy effective date; and the premium amount; again with all premiums matching the total reported to the NAIC on the Annual Statement for that year for North Carolina."

The deadline for filing the report is Tuesday, April 30, 2013.