1. Assembly Bill 865-Surplus Line Advisory Organization
This bill was signed into law and was effective January 1, 1994. The Department of Insurance (DOI) formally designated this Association to assume the responsibilities assigned to it. Shortly, the SLA will undergo its first examination pursuant to California Insurance Code Section 1780.58. We are very optimistic.

2. Filed Premium Volume and Item Card Count 6/30/94 compared to 6/30/93

		Card Count			
1994		1993		YTD decrease	
154,868		335,287		-53.81%		

		Filed Premium 
1994		1993		YTD decrease 
144,064,916	145,109,855	-6.43%

Why the huge drop in the number of new renewal and endorsements (money only)? Quite simply, because of a drop in private passenger automobile filings. It is interesting to note that while the number of items processed has been cut in half the filed premium is down only 6%.

3. Comparison of California Admitted and Nonadmitted premiums (Excluding We and Ocean Marine)

Admitted Market Totals		1993
1. Total excluding life & acc	$33,767,453,577
2. Less Ocean Marine		-131,706,452

Subtotal			$33,635,747,125

3. Add total Accident		+6,082,270,532
4. Total Admitted		$39,718,017,657
5. Total Non-admitted		+1,514,988,158
6. Total Admitted & Non-adm	$41,233,005,815

Surplus line % to total		3.67%

In spite of the fact that California is the largest state for nonadmitted filed premiums, these premiums account for less than 4% of the overall insurance market in California.

4. Regulation 2174 and Form A Filed Brokers
Form A submissions must include the surplus line license number of the office submitting the Form A, not some other broker number. By now, all members should have received a complete "Listing of Filings" dated July 7, 1994. Please call the SLA if you have not received a copy.

5. Direct Placements with Nonadmitted Insurer
The following is a paragraph from a letter the SLA recently wrote to the DOI regarding direct placements:

"This letter is to confirm our conversation earlier regarding direct placements with nonadmitted insurers. Such purchases of insurance, including surplus line brokers who purchase their own property or liability insurance, are not subject to existing surplus line laws and regulations. Also, these types of transactions need not be filed with the SLA. However, direct placements effective January 1, 1994 are subject to a 3% franchise tax to be filed directly with the California Franchise Tax Board."

6. Educational Seminars
In our last issue, we indicated we wanted to conduct another seminar. I can now report the SLA has received approval from the DOI to provide six (6) hours of continuing education credit based on the course submitted. Northern California and Southern California seminars are tentatively scheduled for early November, 1994.

7. Western States Surplus Line Conference -1995
We are pleased to announce that this event for 1995 is as follows:

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