How to Stay Compliant When Filing New York Excess Lines
There is a lot of information to juggle when working with excess lines. Keeping track of deadlines, tax rates, and new regulations can feel overwhelming. What’s more, not filing properly can lead to big fines and penalties. Here are four ways you can stay compliant when filing New York excess lines.
1: Understand New York Compliance Requirements
Doing excess lines business in New York is different than in other states. If you’re planning to file in New York, here are a few things you need to know.
Part C and NELP Forms Must Be Completed by the Correct Retail Producer: When administered properly, the Notice of Excess Line Placement (NELP) form provides protection to brokers. It can prevent DFS inquiry, a coverage contest or an errors and omissions suit.
The Part C and NELP forms must be completed by the retail producer holding the correct BR- type license. When this producer is different from the Surplus Lines Broker, the Part C and NELP forms must be submitted to ELANY for review policy documents. You can find additional information about this requirement here. You can also reference the Part C – Affidavit by Producing Broker here.
ELANY Accepts Binder Filings To Avoid Late Filing Penalty: ELANY does accept binder filings to stop the clock when a filing is considered past due in order to avoid the late filing penalty. However, ELANY does not consider the filing complete until the dec page has been submitted for stamping. Additionally, the policy is not complete until the stamped dec page has been added to the policy and then presented to the insured. You can reference this ELANY publication to find more information on this policy.
Current Codes and Legislation: Spend some time studying and getting to understand the compliance requirements for New York. The more in-depth your knowledge, the easier it will be to file. Some documents we suggest referencing include:
2: Sign Up For Excess Lines Newsletters
There are several organizations that publish helpful information related to excess lines. These can keep you up to date with changing excess lines requirements. Signing up for these newsletters is a great way to make filing easier. You’ll always be alerted to important information that is essential to filing in New York. Some newsletters to consider signing up for include:
The Excess Line Association of New (ELANY) serves as a nonprofit industry advisory association. ELANY facilitates and encourages compliance with the excess line law. You can subscribe to their newsletter or follow them on social media here.
The Insurance Brokers’ Association of the State of New York (IBANY) provides a platform for education, professional development and networking in New York. You can sign up for their newsletter here (scroll to the bottom of the page).
The Securities and Insurance Licensing Association (SILA) is an organization that connects insurance professionals. It provides education and up-to-date resources to its members. By becoming a member, you have access to many benefits. Some benefits include frequent updates on insurance licensing and securities regulatory changes. You can become a member here. If you are not a member, you can still read their frequent regulatory updates here.
3: Establish Effective Workflows In Your Agency
Excess lines require the collective work of several people at your agency. Effective workflows are essential for coordinating everyone’s efforts and filing excess lines properly. Establishing workflows can help you stay compliant. You can build effective workflows by:
Improve Your Communication: Frictionless workflows need everyone to be on the same page. Clear channels of communication make it possible for your processes to flow.
Identify Inefficiencies: Find areas in your workflows that are not working properly. These may be processes you need to digitize. Or tasks that could be automated. Or hiring more employees with the skills your team is currently lacking.
Create Better Organization: Having clear organization is an important aspect of frictionless workflows. Your organization systems need to be shared by all members of your agency. Having one organization process for your entire agency keeps everything streamlined. Additionally, all of your data needs to be organized in one central location. This can be done in spreadsheets or by using surplus lines management
4: Utilize Technology Solutions
New York excess lines are quite complex. However, there are several ways technology can create simplicity for your filing process. Technology solutions are a great way to minimize errors and save time and money. Consider utilizing one or more of the following technology solutions:
Free New York Excess Lines Tax Calculator: Calculating New York excess lines transactions is a breeze with a tax calculator. That being said, it’s important to use accurate technology with regularly updated tax rates. You can find a free tax calculator that does all that here.
Surplus Lines Management Software: There are so many moving parts involved in excess lines filing that it can be difficult to keep track of everything. Stay organized and stay compliant by using a management software. This technology solution can help you navigate complex regulatory compliance requirements. It accurately calculates New York excess lines taxes. It also reconciles and validates filings before submission.
License Management Software: Staying on top of your licenses can be very time consuming. And missed deadlines can be costly mistakes. Track all of your licensing needs with this license management software.
By implementing these four methods, you can keep on top of changing compliance requirements. You can better manage your workflows. And you can stay compliant when filing New York excess lines.
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