Wednesday, March 26, 2014

SLA Leverages Industry Partnerships to Support California Brokers in Hawaii

As executive director of SLA, one of my most important jobs is building relationships with key partners in the industry. Recently, this effort to build bridges bore fruit when we learned that a bill introduced in Hawaii, House Bill 2048, would impose onerous regulatory burdens on California surplus line brokers trying to insure interests in the Aloha State. The bill, if enacted, would have made it virtually impossible to write certain types of nonadmitted business there, by applying upwards of 50 statutory provisions to surplus line policies that previously had not been applied, in recognition of the fundamental difference between admitted and surplus line policies.

While SLA has no direct stake in the legislative process in Honolulu, a number of our brokers do place policies in Hawaii. Therefore, we provided advisory support to the National Association of Professional Surplus Line Offices (NAPSLO) and the Property Casualty Insurers Association of America (PCI), both of which testified against the legislation, in order to help look out for its members’ interests. Within days, the bill was postponed indefinitely. SLA will continue to monitor this legislation and will be ready to lend all necessary support to its industry allies in the event that Hawaii legislators decide to take it up again.

It is our job here at SLA to look out for our members’ interests wherever they may be. My staff and I will continue to build bridges with other leading insurance organizations so that we can be in a position to work for our members even in places where we do not have a seat at the table.

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