NCSLA

The North Carolina Surplus Lines Association, a regulatory support organization by statute, provides support to surplus lines licensees committed to the wholesale distribution system and the surplus lines industry. The association provides networking, regulatory, legislative and education activities on behalf of its members.

A Board of Directors, whish is comprised of six wholesale representatives, three retail members and the immediate Past President, governs the association. Directors are elected by the membership to serve two year terms. The Executive Committee consists of the President, Vice President, Secretary, Treasurer and immediate Past President. Membership is divided into voting and non-voting member categories. The association is managed by Elaine Christian, a professional association manager with an office located in Raleigh, North Carolina. The association's General Counsel is Frank Liggett, III with Ragsdale & Liggett, LLP of Raleigh ,NC.

Unique and hard-to-place risks that are not written by the standard markets are placed in the surplus lines market, which includes domestic surplus lines insurers in addition to Lloyds' of London and alien insurers. With the ability to accommodate a wide variety of risks, the surplus lines market acts as a complement to the admitted market. Often called the "safety valve" of the insurance industry, surplus lines fills the need for coverage in the marketplace by insuring those risks that would otherwise not be protected.

Surplus lines insurers are able to offer specialty insurance in a large part, because they are free of rate and form restrictions imposed on other insurance insurers. In this way, surplus lines insurers are able to react to changes in the market and design a policy that meets the needs of the insurer and the insured. Further, the surplus lines industry has long served as an incubator for many new products, offering such products as Directors and Officers Liability, Employment Practices Liability, Patent Infringement Insurance, Cyber Liability and more long before the admitted marketplace had the capacity to do so.

While surplus lines insurers may not be regulated in the same manner as traditional insurers, that does not mean that they are not regulated. Each domestic insurer must be licensed (admitted) in one of the 50 states and must meet the solvency requirements of that state. Requirements vary by state, but must generally speaking, they are usually more stringent for surplus lines insurers than those imposed on admitted insurers. The first actual legislation pertaining to the surplus lines industry can be traced back to New York in 1890. Surplus lines premiums make up about 7% of the total commercial insurance marketplace in the United States.

There are three basic categories of surplus lines risks:

Non-standard risks have underwriting characteristics that don't fit into the established criteria of the standard market

Unique risks are those for which admitted carriers do not offer a filed policy form or rate

Capacity risks evolve when a client seeks a higher level of coverage than the admitted market is willing to provide.

NCSLA makes many resources available to members through the work of committees designated by the President of the association. A member of the Board of Directors chairs each committee. “Committee Day” is held each year during the annual meeting. All committees convene to set their agendas and budgets. The committees meet separately, as necessary, throughout the year and work with the association management office to make benefits and services available to members.

Conventions. The convention committee plans the annual meeting. Featuring several days of programs, seminars and business meetings, the convention helps members prepare to meet the challenges of the future, develop professional relationships with their peers, key Department of Insurance personnel, vendors as well as other industry trade groups.

Budget, Finance & Audit. The budget & finance committee assures that association funds are used to appropriately benefit the membership. The committee develops an operating budget for each year and reviews the financial impact of all decisions. The budget report to the Board of Directors should include 2-5 years past experience for easy comparison. This committee works with the Legislative Committee on lobbying issues as needed. This committee suggests audits to the Board as needed.

Information Systems & Technology. This committee develops and maintains the association’s website. This committee will also work with the Industry & Public Relations committee to better define the role of the surplus lines marketplace.

Industry & Public Relations. The committee works with the agents of NC to better define the role of surplus lines in the state. The committee also works with trade groups to better define the role of the surplus lines marketplace is the primary concern of the Industry & Trade Relations Committee. Committee continues to develop PowerPoint presentation and present to agencies throughout the State of North Carolina.

Education. The Education Committee is committed to helping members stay on top of their profession. Programs and seminars focus on industry issues and practical management and operational techniques. As a result, the committee provides members with an opportunity to upgrade their professionalism and increase their awareness of current trends in surplus lines. The committee oversees the ASU Seminar and also supports the efforts of the Educational Foundation.

Internship. This committee will strive to attract new talent to the surplus lines industry. The Internship Committee presents various training and scholarship opportunities to college students and young insurance professionals. This committee works with the Education Committee to oversee the ASU Seminar. This committee works to develop a NCSLA Summer Internship Program by studying NAPSLO’s program. Program offers college students an opportunity to spend the summer becoming more familiar with our industry by offering internships to work with various member wholesale brokers and surplus lines carriers who have volunteered to act as hosts.
Membership & Ethics. The Membership & Ethics Committee reviews applications for membership renewal and investigates complaints against member firms. Utilizing informational surveys, this committee also provides members with valuable information to evaluate their profitability and productivity. The committee also makes suggestions to the Board of Directors for adding or improving benefits and services offered to members. This committee will work to solicit white list carriers and vendors like adjusting firms and glass companies as associate members. The committee shall coordinate efforts with the Convention Committee.

Legislative. The Legislative Committee plays an important role in the association by monitoring and expressing positions on legislative and regulatory issues affecting the surplus lines industry. The committee keep the Board of Directors up to date with legislative issues of NAPSLO as well as local trade associations like IIANC. The Legislative Committee also works in close cooperation with the NC Department of Insurance to advance the interests of the industry and consumers to foster a smooth and vibrant surplus lines industry.
NCSLA, The Next 25 Years
The NCSLA membership consistently recognizes legislative issues as the primary area where they look to the association for leadership. Furthermore, our membership consists of people and entities focused on the wholesale distribution system and the surplus lines industry.

With the diversity in membership, there is diversity in the attitudes and levels of interest in many, if not most, legislative issues. As an association, our plan is to proactively support and lobby for positions which can be universally supported by our diverse membership.

We suspect many issues will not qualify for a specific NCSLA position. With the clear priority of these issues in mind, our Association will take on two roles:

· On those issues where there is a consensus, we will be advocates.

· On those issues where it is clear there would be wide and varying positions among our members, we will serve as educators.

Our role will be to provide extensive information to our membership so they can develop informed positions which they can advocate individually or in concert with a group sharing their position.

This approach will enable us to strengthen advocacy where it is called for and still provide an invaluable service to our membership on issues that impact them but may not draw a universal position.