1. Public Relations-Membership assistance whenever and wherever possible.
2. Security-Monitoring those companies that appear on the various filings.
3. Managing the overall Stamping Office operations.

Our Stamping Office receives an average of 32,900 money documents coming in every month (1991). An important part of our operation is the accumulation of records that are made available both to our members and to the Department of Insurance at their specific request. Thus, each piece of business is coded by a class of business. How is this accomplished? Think of us an insurance company with a coding department. Same idea. We have codes set up to cover various classes of business. Every penny filed is then physically assigned a code number such as liability, property and crime. We now have 'made the first step in our process of record keeping and identification.

The next step is broker identification. Every member is assigned a code number. Thus, every penny of premium filed by every broker is maintained on an individual basis. This serves many areas. An example of a major area is premium tax to the state. Quarterly, for tax purposes, we advise' the Department how much premium was filed in a quarter by each broker. This enables the Department to check and verify all tax returns.

The next step is security identification. On every filing made with the Stamping Office, there ill be from one to as many as fifty or more companies fisted. Again, a code number is assigned to company for identification purposes. Thus, as in the class of business and broker, we now also have assigned every penny to a company.

Let me give you an example. We receive a primary liability filing and the premium is $ 10,000. There are five separate companies each participating for 20% of the $ 10,000.

This information is produced quarterly and year-to-date. Every money document filed is essentially processed in the same manner.

The activities of the Stamping Office and Contact Committee during the last quarter consists largely of attending to the day-to-day operating affairs of the Surplus Line Association

At a recent meeting in Los Angeles we were able to review and monitor many of the operating and financial figures for the first quarter of 1992. The numbers and format is similar to the information given to the entire membership at our annual meetings in January. In particular we looked at filed premium and card counts for the first quarter. Both were down, with premium being off a modest 4% and card counts down 19%. The numbers are somewhat distorted in the prior period as automobile, which had been held up by the Department of Insurance, was entered.

Income and expenses for the first quarter were reviewed and in the overall were found to be on target. Specific expense variances were examined and determined to be acceptable. Your Association Manager and his staff do a professional and excellent job in running the association office.

The SLA buys insurance protection just like everyone else and an annual review of our program was conducted and determined to be very much in order. Our committee members did note a couple of minor suggestion which are being reviewed.

The committee also heard reports on both legislative and regulatory matters where we are continuing to see a high activity level.

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