Delaware insurance producers’ administrative burden when placing business in the surplus lines market will be lighter thanks to passage of House Bill 40 on Tuesday in the state General Assembly, the Delaware Association of Insurance Agents & Brokers (IA&B) said.
The legislation removes the notarization requirement on the surplus lines diligent effort form (SL-1923).
“The notarization requirement placed an undue burden on agents,” said Rick Russell, president and CEO of the Delaware Association of Insurance Agents & Brokers (IA&B), which championed the bill.
IA&B said the Delaware Department of Insurance (DOI) late last year took a literal stance of state law and began requiring notarization of all surplus lines affidavit forms. IA&B said it immediately began to work with lawmakers and the DOI on a legislative fix to the new notarization requirement. Rep. Bryon Short, chairman of the House Economic Development/Banking/Insurance/Commerce Committee, served as the primary bill sponsor.
“The Department was receptive to agents’ concerns and very supportive of this bill,” said Russell.
HB 40 will take effect 90 days after Gov. Jack Markell adds his signature, which is anticipated in the coming days.
Topics Agencies Excess Surplus Delaware
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