Quarterly Newsletter
Washington's new rule for reviewing surplus lines brokers speeds up insurance filing approvals
New process simplifies verification for non-admitted insurance policies
Published: January 16, 2024
The Washington Utilities and Transportation Commission (UTC) recently approved motor carrier safety rule changes that will simplify the use of surplus lines insurance in the state.
Tyler Insurance Filings users should find that the new process speeds up filing reviews for policies arranged by surplus lines brokers, who are licensed to place coverage with non-admitted insurers. Filings will be placed in a Pending status only for the short length of the broker verification process and a due diligence review.
As Mathew Perkinson explained in the UTC Commission's Motor Carrier Safety Rulemaking adoption hearing on June 7, 2023, "Staff amended language in all the rules to allow for the use of surplus lines insurance. This is consistent with the Federal Motor Carrier Safety Administration rules on insurance, and it will also create efficiencies within the commission where staff will no longer be required to take these actions before the commission."
UTC Commissioner David Danner agreed, "we're getting some efficiencies out of these rules as well and I really appreciate that. It will reduce staff time."
Prior verification rules required hours of meetings with UTC commissioners, followed by a vote. Now, UTC staff can independently carry out verification of surplus lines brokers offering non-admitted insurance. The review involves confirmation that the broker is licensed in the state and registered with the Surplus Lines Association of Washington. Full rulemaking information is available on the Washington UTC website.
"Staff amended language in all the rules to allow for the use of surplus lines insurance. This is consistent with the Federal Motor Carrier Safety Administration rules on insurance, and it will also create efficiencies within the commission."
- Mathew Perkinson, Washington Utilities and Transportation Commission.
Next, the UTC staff will review evidence of a due diligence search for each non-admitted policy. This documentation must demonstrate an attempt to cover the motor carrier via an admitted insurer before resorting to a policy provided by a non-admitted insurer via a surplus lines broker.
Upon completion of the review process for a non-admitted policy filing, UTC staff will assign a status of Accepted or Rejected. As with all other electronic filings, Tyler Insurance Filings users will receive email notification of the status update and see the latest status information in their accounts.
Tyler Insurance Filings has offered Form E, Form H, and Form K filing service for the Washington UTC since 2020. Personal lines filers can use Tyler Insurance Filings to submit SR-22 and SR-26 to the Washington Department of Licensing, as well.
Tyler Insurance Filings is also a great option to submit MCP 65 filings for insurance policies arranged by surplus lines brokers operating in California. The system's business rules for non-admitted carriers ensure that all required information is provided with each filing, including the associated surplus line broker's name and California license number. Tyler Insurance Filings also gathers information required by the California DMV for Admitted Insurers, Charitable Risk Pools, and Risk Retention Groups.
Need to add your non-admitted filing companies to your Tyler Insurance Filings account? Contact your account administrator or reach out to support@tylerinsurancefilings.com for help!