Effective March 31, 2004, the Office of the Commissioner of Insurance will no longer publish a list of unauthorized nondomestic insurers that the office believes to be reliable or solid.
Section 618.41 (6) (d), Wis. Stat., states that the Commissioner may issue lists of unauthorized nondomestic insurers (surplus lines carriers) he or she believes to be reliable and solid. (Emphasis added.) The office has, for many years, issued such a list upon a limited review of financial statements filed by unauthorized nondomestic insurers wishing to be placed on the list. Due to resource demands on the Bureau of Financial Analysis and Examinations, the area of the office that produced the list, continued publication of the list is no longer possible.
Therefore, the Office of the Commissioner of Insurance has determined that it can no longer provide the lists contemplated in s. 618.41 (6) (d), Wis. Stat., and will no longer evaluate financial statements submitted to this office for that purpose. For those insurers that have already submitted their annual statements for review with the required filing fee, the office will return the fee.
The office will amend s. Ins 6.17 (3) (b), Wis. Adm. Code, that requires surplus lines agents to inform their policyholders if an unauthorized insurer with whom they place coverage is not on the list published by the office. Unauthorized insurers are reminded that, effective April 1, 2004, they are no longer on Wisconsin's authorized surplus lines list and may not so state.
Surplus lines agents are also reminded of the requirements in s. 618.41 (8) (a), Wis. Stat., pertaining to the responsibilities of surplus lines agents concerning evaluation of the financial condition of unauthorized insurers they use to place coverage and notice of any deficiencies to applicants.