Assembly Bill 842 allows the establishment of an "Export List" of those
risks/coverages for which a diligent search does not have to be made in order to place the
coverage in the nonadmitted market. Automobile or motor vehicle liability insurance,
insurance on residential property as defined by CIC Section 10087 or any insurance written
by the California FAIR plan are not allowed to be included in the list. Public hearing(s)
must be held and the SLA pays for the cost of not more than two a year.
A sub-group of the SLA's Executive Committee and I have been working on this. We have
asked for and received suggestions from the California Insurance Wholesaler's Association
("CIWA") and have prepared a database with lists from all states which have such
lists, from CIWA and from a few nonadmitted insurers. We are also asking for input from
the Association of California Insurance Companies, IBA West, the National Association of
Insurance Brokers, the PIA and certain admitted companies.
We now need the assistance of you, our members, because you are doing surplus line
business on a daily basis. The establishment of a realistic and comprehensive list will do
much to reduce your paperwork burden!
Please send us your ideas of what should be included on the list. Where possible, we need
the reason for the inclusion of a particular type of coverage or type of risk or exposure.
Scratch paper, faxes, phone calls and the like are very acceptable to us.
Contact me, Ilona Bovee, Linda Cheng, Nadine Watso or Deanna Zanoni. Please let us hear
from you before the end of the month.
Edgar S. Clark
Executive Director