SLA Quarterly
Arthur D. Freeman, Jr.

SLA History Spotlighted

In 1937, the Surplus Line Law of California was revised.' This revision was done because the Department of Insurance lacked the authority and facilities to police the excess and surplus lines in California. The revised law was based on the theory that the right of a citizen, to buy insurance outside of the state cannot be denied by the state. However, because the company is domiciled in a state other than California, it is beyond the regulation of the California Insurance Department. The revised 1937 law made the following recommendations,

  1. A special committee should be created to cooperate with the Department of Insurance in the drafting of a new law.
  2. Surplus Line Brokers should form an Association, the purpose of which would be to inform its members as to the proper procedures, and to cooperate with the Department of Insurance in providing effective regulation. This was the beginning of the Surplus Line Association of California.

At that time, it was agreed by the Department of insurance and the insurance community that each policy/certificate written in a non-admitted, insurance company should be filled with the Department of Insurance in order to examine the policy and to ensure there was compliance with the provisions of the new law. Following the intent of the new law? the Department of Insurance asked -the Surplus Line Association to undertake the creation of a Stamping Office facility to receive and examine these filings. The Association began the operation of a Stamping Office in 1934. Its Constitution provides that members file a copy of each insurance policy written in a non-admitted, company, and subject to tax, with the Stamping Office.

That, in a few words, gives you a brief history of the Surplus Line Association of California. In coming issues we will examine the evolution of the Surplus Lines Association over the last several decades.

- Arthur D. Freeman



Life affords no higher pleasure than that of surmounting difficulties, passing from one step of success to another, forming new wishes and seeing them gratified.

- Samuel Johnson

James Widgren

Stamping Office Agenda Outlined

Welcome to the very first issue! Being the newly elected Chairman for 1992, one of my goals with this column is to give YOU updates on recent activities and developments. Our first meeting is scheduled in a few weeks and without specific news to pass along I thought it would be appropriate in this first issue to explain a little bit about the purpose and function of this committee.

In brief, our committee has supervisory authority over the administration and expenses of the Stamping Office. Additionally, the committee is charged with monitoring annual operating expense and revenue budgets of all funds throughout the year. Finally, as events warrant, changes and amendments to the Association's constitution also begin in this committee.

The Stamping Office committee is annually authorized to report its recommendations to the Executive Committee on the matters already listed. To accomplish such tasks means that members truly make this committee a success by contributing many hours of personal time in a responsive and professional manner. In 1992, I'm pleased to be assisted by Ed Casey, Jack Connolly, Don Grant, Jack Graves, Bob Keul, Rod Ludwig and Jerry Sullivan.

- James Widgren

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