Bulletin 2000-06 Revised Guidelines and Reporting Requirements for Surplus Lines Business

Revised Guidelines & Reporting Requirements for Surplus Lines Business

Issued on June 22, 2000

To: All Licensed Brokers

From: Mr. Ernst N. Csiszar

Subject: Revised Guidelines and Reporting Requirements for Surplus Lines Business

This Bulletin supersedes and replaces Bulletin Number 92-9 dated December 14, 1992. The purpose of this bulletin is to update

guidelines for the placement of business with eligible surplus lines insurers and to revise Department of Insurance reporting

requirements to effect amendments to S. C. Code Sections 38-45-20, 38-45-30, and 38-45-110 mandated by Act # 312 of 2000

(Act) effective May 26, 2000.

Act # 312 eliminates the requirement that business placed with eligible surplus lines insurers be filed with and approved by the

Department of Insurance. Business with policy effective dates prior to the effective date of the Act must receive approval;

however, business as of May 26, 2000 and thereafter is no longer required to be submitted. Endorsements, cancellations, etc.,

that apply to previously approved business are also not required to be submitted.

The Department will no longer keep duplicate records of broker business. Brokers will be required to submit certain summary

information by January 31 of each year for the previous calendar year for statistical, tax collection and distribution purposes.

Information that must be reported is detailed on the attached year end summary form SCDOI Form 2001A. Brokers should

review this form in detail to verify that required information is being accumulated in their records so that it may be properly

reported at year end. For brokers who reported business in 1999, this form is also being supplied on an Excel spreadsheet

electronic file. The Department requests a completed electronic form be returned to the Department along with the signed paper

form to expedite processing of this information. The electronic form will be supplied to other brokers upon request

cords so that it may be properly

reported at year end. For brokers who reported business in 1999, this form is also being supplied on an Excel spreadsheet

electronic file. The Department requests a completed electronic form be returned to the Department along with the signed paper

form to expedite processing of this information. The electronic form will be supplied to other brokers upon request.

Rather than use this Bulletin to restate various provisions of Chapter 45 of Title 38 that deal with insurance brokers and surplus

lines insurance, it is recommended that brokers and their employees review Chapter 45 to refamiliarize themselves with the

requirements of this section. Code provisions other than those affecting filing and approval by the Department are unaffected by

the Act and continue in full force and effect. Bulletin 92-9 is hereby withdrawn.

Questions regarding Act # 312, this bulletin, or revised filing and reporting guidelines should be directed to the attention of Mr.

Bobby Troutman at (803) 737-6141. Questions may also be E-mailed to the South Carolina Department of Insurance at the

following address: btroutman@doi.sc.gov.