member questions answered by our highly-qualified technical specialists.
If you have not registered for members-only sevices from PIA click here.
Browse by topic
Excess and surplus lines
Surplus-lines disclosure
Is any disclosure notice required when writing a surplus-lines policy?
Direct placement tax
I just received a copy of a form entitled “Direct Placement Tax Return—Insurance Placement with Unauthorized Insurer or Self-Insurer’s Report.” What is the purpose of this form?
Surplus-lines tax—tax-exempt entities
Our client is a church. We placed the coverage in the surplus-lines market. The church officers say the church is tax-exempt, so they do not feel they should have to pay the surplus-lines premium tax. Is this correct?
Surplus-lines cancellation
I have a New Jersey property account which has been in effect for more than 60 days. Now the company is canceling it due to a loss. The company is nonadmitted. Is this legal?
Rules for accessing the surplus-lines market
For risks that do not automatically qualify for the surplus-lines market, I continue to hear somewhat conflicting information about the need for and completeness of declinations in the admitted market. Is there some “flexibility” that makes this less onerous?
Diligent effort
The Certification Of Effort To Place Risk With Authorized Insurer provides a place to record declinations below this statement: “The following insurers are among those that I contacted relative to this risk....”
Smaller agencies may not have three admitted insurers to contact for the placement of a particular risk. Have any alternatives been approved by the New Jersey Department of Banking and Insurance; for example, recording declinations received directly by the applicant?
Minimum-earned premium
What about a surplus-lines policy with an earned premium provision that states the annual premium is 100% earned at placement? Would this be deemed excessive? What if such a policy was financed and the insured fails to pay the finance company?
CGL—third-party over exclusions
We are seeing third-party over exclusion endorsements on property owner policies written in the surplus-lines market. What are the coverage implications for the property owner?
Declinations due to deficient coverage
Can I consider an authorized insurer’s failure to provide all aspects of the coverage requested by the applicant to be a declination, or does the applicant have to settle for inferior coverage?
Massachusetts surplus-lines fees
What is the law on the maximum surplus-lines fee that can be charged in Massachusetts?