From a mid-year perspective I think many surplus line brokers have learned to live with the Disclosure Statements and the Diligent Search form. While the burden of additional paperwork seemed impossible earlier in the year many brokers have indeed adapted. The anticipated large drop in filed volume hasn't happened and I would urge and direct your attention to the details reported in the Manager's Column.

Legislative activity in Sacramento has been extremely brisk and Jerry Sullivan's report on those bills affecting surplus lines is, as always, very topical and informative. Jerry and the Legislative committee reviewed a total of 56 bills with potential Impact on surplus lines. Perry Taft, SLA arbitrator, reports that a total of 303 bills were introduced in Sacramento that were insurance related.

The May 24th deadline for Regulation 2174 came and went. As expected, there were a very large number of companies that did not file. Last year the SLA had 530 ongoing companies on file of which 148 companies filed under Regulation 2174. The 382 companies not filing represented about 18% of the SLA filed volume. For those companies which filed and whose submission was rejected, combined with companies whose exemption requests were denied by the Department of Insurance, the volume total was 4% of the SLA filed volume.