1. FILING REQUIREMENTS FOR THE SURPLUS LINE ASSOCIATION OF CALIFORNIA THE SURPLUS LINE ASSOCIATION OF CALIFORNIA TAG VIOLATIONS

2.  The Surplus Line Association of California (SLA) notifies the surplus line brokers of discrepancies and violations through ‘tags’.  California Insurance Code section 1780.56(a)(1) states: “The advisory organization shall notify the filing surplus line broker in writing of any filing that the advisory organization determines to be incomplete or inaccurate, and shall request the filing broker to correct the problem. The advisory organization may, or as directed by the commissioner shall, notify the commissioner of incomplete or inaccurate filings.” 2 Preface

3.  Tag Categories………………………………… 4 4  Standard Tags (30-Day Response Time)…… 55  Standard Tags (90-Day Response Time)…… 66  Priority Tags……………………………………. 77  Informational Tags…………………………….. 88  Top Tags Issued in 2014……………………… 99  Tag Response Time…………………………… 10 10  Contact Us……………………………………… 11 11 3 Table of Contents

4. The SLA categorizes tags into standard tags, priority tags, and informational tags.  Standard tags ◦ Notify the broker of errors, problems, discrepancies, or missing information in their filed documents. ◦ 30-day or 90-day response time  Priority tags ◦ Notify the broker of violations of a California statute or regulation in their filed documents. ◦ 28-day response time  Informational tags ◦ Requires viewing without a response 4 Tag Categories

5. Tags with a 30-day allowable response time are:  SL-1 is missing  SL-1 form is incomplete  SL-2 is missing  SL-2 form is incomplete  Section 6 of the SL-2 form is incomplete  Section 7(B) of the SL-2 form is incomplete  Admitted company name is not licensed to write that class of business  Admitted company name is not stated as admitted in CDI’s website ◦ https://interactive.web.insurance.ca.gov/companyprofile/companyprofile https://interactive.web.insurance.ca.gov/companyprofile/companyprofile  Risk purchasing group name is not shown  Admitted company name is incomplete on SL-2 form  SL forms required for extension endorsement  Forms are not legible  Late filing 5 Standard Tags (30-Day Response Time)

6. Tags with a 90-day allowable response time are:  Name insured is not legible  Policy/certificate number is missing  Policy/certificate term of coverage is missing  Cancellation effective date is missing  Incomplete policy  Taxes are not shown on policy/certificate  Endorsement has no record of policy being filed  Free form text  Endorsement does not fall within policy term  Premium not broken down by coverage  Renewal has no record of previous policy filed  Endorsement does not show tax and fee  Invoice date  Revised coversheet  Risk purchasing group name is not registered under company 6 Standard Tags (90-Day Response Time)

7. Priority tags with a 28-day allowable response time are:  Lower Rate Filing  CAARP declination is missing Insurer not in compliance with GAP provisions  Company objected by California Department of Insurance  Security information is not provided  Security list does not show group breakdown  Lloyd’s syndicate numbers not shown  Security company % does not equal % on cover note  Premium needs to be broken down by coverage  Alien insurer not meeting eligibility  Insurer with a merged status 7 Priority Tags

8. Tags for informational purposes only with no response required are:  Revised SL1 (January 16, 1997)  Revised SL1 and SL2 forms  SL1 with original signature  SL2 with original signature  Revised SL2 (March, 1995)  Late filing with explanation 8 Informational Tags

9. 9 Top Tags Issued 2014 TAGS DESCRIPTIONCOUNT LATE FILING WITH EXPLANATION (INFO ONLY)108,042 LATE FILING9,301 INCOMPLETE SL2 FORM8,511 SECTION 7(B) OF SL2 INCOMPLETE6,408 INCOMPLETE SL1 FORM6,036 INCOMPLETE ADMITTED COMPANY NAMES5,983 RENEWAL HAS NO RECORD OF PRIOR POLICY4,509 LLOYD'S SYNDICATE NUMBERS3,092 UNLISTED ADMITTED COMPANY2,983 SECTION 6 OF SL2 INCOMPLETE2,952 OTHER14,703 TOTAL 172,520

10.  If a tag is not responded to at the end of its allotted time period or the tag response is inadequate, a report is sent to the California of Insurance Investigations Division.  The report includes the broker’s name, tag violation and policy details. 10 Tag Response Time

11. 11 Contact Us If you have any questions please contact the Education and Compliance Department at education@slacal.orgeducation@slacal.org.