2004 Notice of Public Hearing Regarding Export List ( View 2004 Export List )

STATE OF CALIFORNIA

DEPARTMENT OF INSURANCE

45 Fremont Street, 21st Floor

San Francisco, CA 94105

NOTICE OF PUBLIC HEARING REGARDING EXPORT LIST

NOTICE IS HEREBY GIVEN that the Insurance Commissioner of the State of California

will hold a public hearing, at the time and place set forth below, concerning the renewal

of the export list in the surplus lines area.

December 10, 2004

10:00 a.m.

Department of Insurance

45 Fremont Street, 22nd Floor

San Francisco, California 94105

THE HEARING ROOM IS ACCESSIBLE TO PERSONS WITH MOBILITY

IMPAIRMENTS. IF ACCOMMODATIONS NEED TO BE MADE FOR OTHER

DISABILITIES, SUCH AS HEARING IMPAIRMENT, PLEASE PHONE THE CONTACT

PERSON LISTED IN THIS NOTICE BY NOVEMBER 30 SO ARRANGEMENTS CAN

BE MADE.

EXPORT LIST

Pursuant to Insurance Code Section 1763.1, the Commissioner may by order declare

eligible for placement with a nonadmitted insurer and exempt from all the requirements

of Section 1763, except the filing of a confidential written report, any type of insurance

coverage or risk for which he or she finds after a public hearing that there is not a

reasonable or adequate market among admitted insurers.

Pursuant to this mandate, the Commissioner has previously collected information on

whether or not there is a reasonable or adequate market among admitted insurers for

certain risks or coverages. The Department reviewed the export lists in other states.

We contacted California surplus line brokers and surveyed them as to the risks most

placed by them. We received industry input from admitted carriers and through the

Surplus Line Association. We also have held annual public hearings and solicited public

comment from all interested parties including surplus line brokers, admitted insurers,

trade associations representing admitted insurers, agents and brokers, and consumer

groups to provide us with evidence of a lack of a reasonable or adequate market

amongst admitted carriers for a particular risk or coverage

rplus Line Association. We also have held annual public hearings and solicited public

comment from all interested parties including surplus line brokers, admitted insurers,

trade associations representing admitted insurers, agents and brokers, and consumer

groups to provide us with evidence of a lack of a reasonable or adequate market

amongst admitted carriers for a particular risk or coverage. After this process, the

Department adopted the attached EXPORT LIST.

RENEWAL

Pursuant to Insurance Code Section 1763.1 a public hearing shall be held annually

regarding the export list. The above noticed hearing is being set to take testimony on

the export list to see if any items should be added or removed.

In preparing your comments and/or testimony please be aware that items not appearing

on this list will still be exportable but subject to the full documentation of the search

being performed pursuant to Insurance Code Section 1763.

ITEMS BEING CONSIDERED

The Department is considering adding adoption insurance and lenders collateral

protection and lenders environmental liability insurance to the EXPORT LIST. If you are

an admitted carrier that writes any of these coverages or any of the coverages currently

on the EXPORT LIST or otherwise have reason to believe that such coverages are

available in the admitted market, please present evidence of such in writing or appear at

the hearing.

HEARING AND WRITTEN TESTIMONY

As stated before, this hearing is public and interested parties may testify as time

permits. The hearing will be structured with time and place priority afforded to those

who have signed-up in advance to speak. If you wish to sign-up in advance to speak,

submit your written request to the contact person listed below.

PLEASE BE AWARE THAT IN ORDER FOR THE COMMISSIONER TO CONSIDER

ADDING A RISK OR COVERAGE TO THE EXPORT LIST, THE COMMISSIONER

MUST HAVE EVIDENCE THAT THERE IS NOT AN ADEQUATE OR REASONABLE

MARKET FOR THE RISK OR COVERAGE IN THE ADMITTED MARKET

se

who have signed-up in advance to speak. If you wish to sign-up in advance to speak,

submit your written request to the contact person listed below.

PLEASE BE AWARE THAT IN ORDER FOR THE COMMISSIONER TO CONSIDER

ADDING A RISK OR COVERAGE TO THE EXPORT LIST, THE COMMISSIONER

MUST HAVE EVIDENCE THAT THERE IS NOT AN ADEQUATE OR REASONABLE

MARKET FOR THE RISK OR COVERAGE IN THE ADMITTED MARKET.

SUBMISSION OF A STATEMENT SIMPLY REQUESTING A RISK OR COVERAGE TO

BE ADDED TO THE LIST WITHOUT OTHER SUPPORTING EVIDENCE OF THE

LACK OF AN ADEQUATE OR REASONABLE ADMITTED MARKET WILL NOT BE

ENOUGH FOR THE COMMISSIONER TO ADD A RISK OR COVERAGE TO THE

LIST.

All written testimony, comments, or documents must be sent to the Department of

Insurance in triplicate (original and two copies) and received by the Department of

Insurance at the address given below no later that 5:00 p.m. on December 10, 2004. All

written testimony received at the hearings will be considered part of the hearing record.

The Department of Insurance will not accept any written testimony, comments, or

documents which are transmitted to it by facsimile.

Please direct any questions regarding this Notice of Investigatory Hearing, opportunities

to testify, and written submissions for the record, to: Carol Frair, Senior Staff Counsel,

California Department of Insurance, 45 Fremont Street, 21st Floor, San Francisco, CA

94105, (415)538-4408.

DATED: November 5, 2004

JOHN GARAMENDI

Insurance Commissioner

By_____________________

Carol F. Frair, Senior Staff Counsel