Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.latimes.money From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Story on 'Unlicensed Insurers' Is Misleading Date: Mon, 9 Nov 92 07:02:32 EST Message-ID: HEADLINE: Story on 'Unlicensed Insurers' Is Misleading Publication Date: Sunday November 8, 1992 BYLINE: Your article "Business Booms for Unlicensed Insurers" (Oct. 23) is very misleading. Your use of the term unlicensed insurers conjures up the same type of people who go from city to city black-topping driveways and re-roofing houses. The correct term is "non-admitted" insurers. They are not licensed to do business in California, but many of these companies, such as Lloyds of London, are solid organizations. They provide a valuable source of coverage that would otherwise not be available. Your verbiage makes them sound like unlicensed drivers who should be licensed. These companies are not breaking any laws, as your article infers. Your writer makes it sound as though these non-admitted carriers are running amok! Every industry has its problems, whether it's banking (S&Ls), autos or building contractors. Any surplus line broker proposing to use a non-admitted insurer is guided by the rules and regulations set forth in the Surplus Lines Assn. manual. The surplus line broker, having concluded that the particular risk appears to be proper for placement, makes a filing with the stamping office. This filing includes the entire policy or certificate working, and it is accompanied by a statement. The statement is a declaration by the surplus line broker that the type of insurance being placed is not available from the majority of admitted insurers and that the rate is not lower than the lowest rate available from an insurer. Where the individual risk is one of a class usually written, but is not acceptable to the majority market, an affidavit is necessary. I refer your readers to the Surplus Line Assn. of California, 388 Market St., San Francisco, Calif. 94111, for a copy of "The Story of Non-Admitted Insurance in California." I can assure you that the word unlicensed does not appear in its entire text. Your writers' use of the word unlicensed is unfortunate and produces a totally inaccurate article. JOHN G. WATKINS San Juan Capistrano This article is copyright 1992 The Los Angeles Times Home Edition. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM