SLA and CDI: Forge New TiesThe year 1995 marked the end of an era and the beginning of a new one. The file and use regulation of surplus lines insurance that began with emergency regulations back in 1992, ended in 1995. Beginning in 1996, all surplus lines business would be placed using a set list of eligible insurers. No more Form A filings, no more $35 fees, no more Form A tags, no more seemingly endless updates of the Listings of Filings. In 1996 there is one List-the List of Eligible Surplus Lines Insurers. This new method of determining California surplus lines eligibility also u skiers in a new relationship between the SLA and the California Department of Insurance (CDI). Yet, paper flows and operating protocols do not change ale by themselves overnight. Any smooth transition has many unseen heroes working hard to make sure it does happen smoothly. In 1995, we had to keep the old method (Form A) functioning while the new one evolved. To make this possible, the SLA and the CDI needed to establish a new level of trust, cooperation and communication. Dennis Ward, the CDI's Chief of Enforcement, became a key figure in orchestrating this smooth transition. Processing LESLI list applicants involved many different groups: at the CDI, Financial Analysis, Legal, and Investigations; and at the SLA, the Financial Dept. and Data Service Unit. Working together was not always easy. At first, the process moved slowly. No company was added to the LESLI list until the end of June, 1995. However, we all continued to work hard and focus on the goal. Dennis Ward managed to get all the horses into one harness and riding in the same direction. By December 31, 1995, all the LESLI applications had been reviewed and there were 128 insurers on the LESLI list. In 1995, the SLA and GDI built a new level of trust and cooperation. We showed that hard work and open communication applied to a shared goal yields results. In recognition of what we achieved together during the year the SLA hosted a meeting with the entire staff of the CDI involved in implementing the transition to the LESLI list. Over forty people from the CDI joined the SLA staff for this "Farewell to Form A Celebration" at the SLA offices on January 31, 1996. At this meeting, Dennis Ward graciously presented eight of the SLA staff with letters of commendation from Commissioner Quackenbush for their assistance in implementing SB 959. We also gratefully acknowledged the dedicated work of the people at the CDI that helped make the LESLI list a reality: Dennis Ward, Edmund De Guzman and his staff et FAD, Carol Fistler and her staff at Legal, and Chuck Wiscavage and his staff at Investigations. Mr. Ward also presented some of the CDI's future plans in surplus lines insurance and outlined some of die areas where the SLA and the CDI will continue to work together (some of which are already underway). He also pointed out the nature of our new relationship is fragile and each must continue to earn the trust of the other. |
We at the SLA are excited about the challenges of this new relationship. Yet we remain mindful of the new level of responsibility that is linked to this new level of trust. As we set our course for the future, the SLA is confident we can overcome the obstacles that arise, because although we may not agree on everything, we-the SLA and the CDI-have acknowledged our common interest in fostering a robust, and well-regulated surplus line marketplace.
Standing for Something
In fact, the advent of the LESLI List means: Lower filing feesor A Little Easy SimpleList of Insurers |