Idaho Surplus Line Contracts Face New Printing Requirements

The Independent Insurance Agents and Brokers of Idaho is reminding insurance brokers of new requirements for surplus lines contracts that took effect July 1.

H 462 amends existing law relating to unauthorized insurers and surplus lines to revise requirements relating to surplus line contracts that they should be printed in black ink with at least 12 point bold print.

According to the fiscal imapct summary of the bill, “due to advances in electronic signature and distribution of insurance policies, the previous red color requirement was viewed as an impediment because the policy had to be printed on paper, then handstamped with red ink, then scanned to pick up the red stamp image and finally sent to the customer.” By permitting the notice to alternatively be printed in black ink with at least 12 point type, “there will be an opportunity to reduce expense and time.”

The bill also noted that Idaho Code Section 411220 is intended to provide notice to purchasers of surplus line insurance that there is no coverage provided by either the Idaho Insurance Guaranty Association or the Idaho Life and Health Insurance Guaranty Association.

Topics Excess Surplus