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SB 131 by Senator Ted Gaines was heard and passed by the Senate Insurance Committee this past Wednesday.
SB 131, sponsored by American International Group, would clarify the allocation of Department of Insurance reporting requirements under the surplus lines law when multiple brokers are involved in a single surplus lines transaction by permitting delegation of the responsibility by mutual agreement among the brokers as a recognized option.
According to the sponsors, SB 131's purpose is clarify the reporting requirements under the Surplus Lines law when multiple surplus lines brokers are involved in a single insuring transaction. The bill will permit the surplus line brokers involved in a placement to designate among themselves, by a written agreement between and signed by all the participating brokers, which broker is responsible for the required filings. This approach is said to be a better fit for actual practice in the marketplace. The bill requires that agreement must be made available to the Insurance Commissioner upon request.
SB 131 passed the committee with a vote of 8-0.