Colo. imposes new procedures for surplus lines

Colorado has implemented new procedure changes for surplus lines brokers.

Beginning Jan. 1, 2007, surplus lines brokers in Colorado will need to report their monthly policy and endorsement transactions directly to the state’s Division of Insurance, rather than report to the Surplus Lines Association of Colorado.

A Web-based electronic filing system is being developed to replace the association’s online reporting system. The new filing system also will produce the brokers’ annual statement that the association has previously distributed. By Dec. 1, 2006, brokers will have access to the system to request log-ons in preparation of filing their Jan. 2007 reports. Colorado Insurance Regulation 2-4-1 is being revised effective Jan. 1, 2007, to reflect those procedural changes.

Other new requirements and changes include:

• The list of approved surplus lines companies are displayed on the Division’s Web site;
• Existing and applying surplus lines companies must mail all filings to the Division of Insurance;
• Existing surplus lines companies must include a detailed report of all Colorado premiums with their renewal application filing.