Apr 17, 2018

CID clarifies eligibility declination requirement for surplus-lines statement forms

The Connecticut Insurance Department has clarified that SL-8 statement forms (containing eligibility declinations) must be filed upon renewal of such policies on an annual basis, as indicated in Section 38a-741 of the regulation: 

Section 38a-741

(b) (1) When any policy of insurance is procured or renewed under the authority of such license providing a line of insurance or its component that does not, on the effective date of coverage, appear on the current published list, both the licensee and the insured shall write signed statements setting forth facts showing that such licensee and such insured were unable after diligent effort to procure, from any authorized insurer or insurers, the full amount of insurance required to protect the interest of such insured, and further showing (A) that the amount of insurance procured from an unauthorized insurer or insurers is only the excess over the amount so procurable from authorized insurers, (B) the type of policy, and (C) if such policy is for real property, the location of such property. Such licensee shall file such signed statements in electronic format with the commissioner on February 15, May 15, August 15 and November 15 of each year.

There is no option to waive this requirement after the 2013 change in statute (Public Act No. 13-171), which relieved producers of the requirement to have these statements notarized was enacted. (The phrase “or renewal” was added at the same time “executed affidavit” was replaced with “written signed statement.”)

PIA appreciates the CID’s continued communication and looks forward to working with the department to address reducing this unnecessary annual requirement to reflect a more realistic and broader time period for market changes.

PIA members with input or questions about this or any issue regarding their business are encouraged to call their PIA Industry Resource Center at (800) 424-4244 or email resourcecenter@pia.org.