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...ce commissioner is one source. Surplus Lines Insurance companies are lic...outside study. Look for the CPCU (professional insurance) and RM (professional risk management) designations. ...

...iabilities on an insurer’s surplus. Although owners and top management... magazine for risk and insurance professionals.

...nd under what terms. Excess & Surplus Lines (E&S) carriers increase their wri... agency, while demonstrating your professionalism and your concerns to your cl...

...ibit 1) Assets, Liabilities, Surplus & Other Funds (Exhibit 2) I...there been significant or multiple declines in the company’s Best’s Rating in ...

...e, excess insurance, reinsurance, surplus lines insurance, and any other arran...admitted insurance company, an excess lines company, a risk retention group, o...

... . There are fewer exposures when you go from a hard market to a soft market than when going from a soft market to a hard one. When the market hardens, standard carriers become more selective about what business they write and under what terms. Excess & Surplus Lines (E &S ) carriers increase their writings considerably. When you need to move a standard policy into an E&S market, you must consider a number of due diligence areas, such as: Policy coverage and definitions Restrictive endorsements Occurrence vs. ... forms Admitted vs. Non-Admitted carriers Solvency/guaranty fund protection Relationship with a contracted carrier vs. the E&S broker or carrier Even if an E&S market uses a standard form, it might be an older version than the one your client currently has and/or be more restrictive than the one it's replacing. You could also run into a situation in which a coverage enhancement included on the old form must be added to the new one at an additional premium. You might find that the new policy's definitions section ... as inclusive as the old one or that there's been a change as to whether it's an occurrence or a claims-made form. Even if you move the coverage from one standard carrier to another, the old carrier might have coverage enhancements that the new carrier doesn't include. This all boils down to the fact that your agency needs to exercise a greater degree of due diligence to avoid or reduce the impact of an E&O claim. Taking the right steps will also serve the client more effectively and strengthen your carrier relationships. In ...

...important allies is an Excess and Surplus (E&S) lines broker you can depen...good time to determine which E&S brokers will best fill your needs and the...

...rage can be placed only through a surplus lines broker or special lines surplus line broker licensed in California, ...red in other types of policies. All liability policies the agent has should be...

... administrative paperwork. Deductible and self-insured plans will require a focus on cash management. Security requirements are generally met by providing bonds or letters of credit. In some cases, the proper form of security offsets the impact of a policyholder's losses or other liabilities on an insurer's surplus. Although owners and top management will be delighted with premium savings, they might be unaware that they need to be closely concerned with the process. The company's controller or human resources manager should involve the consultant or broker in educating management. CONCLUSION Medium-sized companies might ... medium-sized firms ask is "How large must my business be to use alternative risk financing?" Size isn't very important. The main criterion is losses. As a rule of thumb, alternative risk financing requires approximately $500,000 in annual incurred losses in one line of insurance — for example, Auto, General Liability, or Workers Compensation. Losses in this line should be reasonably predictable, and the firm should be reasonably able to accept risk. Internal management discipline and a willingness to commit the appropriate resources are also required ... management process. Captive risk financing carries somewhat higher non-loss costs and imposes greater administrative concerns than self-insurance and large-deductible plans. CHOOSING RISK FINANCING Here are the steps that a medium-sized company should follow in the financial evaluation of risk management alternatives: Work with a consultant or your broker to identify and analyze suitable alternatives. Project losses and costs, and compare the net present value of each of the risk financing alternatives to the cost of purchasing insurance. Simulate the variability of results. Be certain that you examine worst-case scenarios as well as expected ...

...high-liability exposures and thus surplus lines risks. The property may be a very low...