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SURPLUS LINE ASSOCIATION OF CALIFORNIA APPLAUDS NEW, NONADMITTED INSURER INSOLVENCY REGULATIONS

 SAN FRANCISCO, Nov. 25 ~PRNewswire~ -- California Insurance Department's Regulation 23D, which was approved today by the Office of Administrative Law, is a major industry as well as consumer victory, according to the Surplus Line Association (SLA) of California.
 The new regulation, aimed at the illegitimate surplus line operators who have been harming California consumers and the reputations of legitimate surplus line brokers, will institute a new $15 million capital and surplus minimum and require offshore surplus line insurers to maintain $5.4 million in trust for the protection of policyholders and claimants.
 Commenting on the association's support of the regulation, Irv Anderson, SLA chairman said, "I am confident that this will prove to be the Department's single most important tool for preventing undercapitalized nonadmitted insurers and scam artists from exploiting the California surplus lines market. Although the number of such unlicensed operators is small, they have been a negative force in the marketplace."
 Long in favor of monitoring nonadmitted insurers' solvency, the SLA has worked closely over the past two years with the Department of Insurance to put Regulation 23D in place. Since 1987, when the SLA was designated as the department's agent to monitor the existing program, which applies only to U.S.-based nonadmitted insurers, the SLA has encouraged expanding the program to offshore nonadmitted insurers. The SLA also advised the department during the writing of the regulation and gave support at public hearings.
 The SLA is a private, nonprofit association, comprised of all licensed surplus line brokers in the state. The SLA was formed over 50 years ago to promote and encourage compliance with the laws that govern the placement of insurance with nonadmitted insurers and to assist the Department of Insurance in the monitoring and administration of such laws.
 -0- 11~25~92
 ~CONTACT: Irv Anderson, chairman of Surplus Line Association of California, 213-736-7029~


CO: Surplus Line Association of California ST: California IN: INS SU:

SG-TM -- SF011 -- 1706 11~25~92 18:46 EST
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Publication:PR Newswire
Date:Nov 25, 1992
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