Friday, 07/21/2017 888-867-5633 communications@msla.org

Section V

DOCUMENTATION REQUIREMENTS

The Monthly Transaction Report (MTR)

  • The MTR lists all transactions submitted by a producer for a given time period.
    Reports are final for a given month on the first day of the following month. For example, a report for October will be available to certify on November 1 or later.

Please note: MTR Certification is now an ONLINE process.

  • Effective November 1, 2014 the Monthly Transaction Report (MTR) Certification is only available as an online option. This takes the place of the paper signature page that was required in the past.
  • From the Reports menu option, select Monthly Transaction Report Certification from the dropdown and the desired month, and then click “Print.” This will open a popup window that displays all the information relevant for your Monthly Tax Report on Nonadmitted Insurance Business.
  • After you have confirmed the accuracy of the information, click the box next to the certification statement which will activate the “Certify” button to complete the online certification.

Please note: Uploading the documentation is the preferred method over mailing physical copies.

  • Proper documentation (declaration sheet and/or endorsement) must accompany each transaction that is submitted in SLIP.
  • To learn how to upload your documents, please see the Electronic Document Submission Tutorial.
  • If you are unable to upload the documents into SLIP, please mail the physical copies and the first page of the MTR, to assist in identifying the producer, to:MSLA
    504 Keywood Circle, Suite B
    Flowood, MS 39232
  • The MTR will be certified online (as stated in above paragraph).

Please note: if you are NOT uploading the documentation, it must be in ORDER.

Since MSLA is faced with examining literally thousands of filings and other documents each month, we require all surplus lines licensees to send the Monthly Transaction Report (MTR) and accompanying documentation in the following order regardless if the policy information was manually input or filed in batch:

All policy documentation should follow the order of the MTR:

By Insurer first, then Policy Documentation (Dec sheet/Cover Note/Binder and by Policy Number in the order.

The Eligible Nonadmitted Insurance Form

During the 2012 Regular Legislative Session, the Mississippi Legislature passed Senate Bill 2628, which amends Miss. Code Ann. § 83-21-23 to require surplus lines insurance producers to execute a form prescribed by the Commissioner when making a nonadmitted market placement. The Senate Bill 2628 became effective on and after July1, 2012.

  • This form replaces the Affidavit for Surplus Lines Authority.
  • MSLA will no longer require the affidavit for all new and renewed coverage bound after July 1, 2012, nor will MSLA get the Eligible Nonadmitted Insurance Form.
  • Surplus lines insurance producers are further directed to maintain a copy of the executed form for a period of five (5) years after the termination of the policy, unless the producer has been notified that the form is subject to an examination or investigation by the Mississippi Insurance Department or the Mississippi Surplus Lines Association, or unless the producer has been notified that the form is subject to pending litigation. The form shall be subject to review upon the request of the Commissioner of Insurance.
  • The new Eligible Nonadmitted Insurance Form required herein may be PRODUCED, SIGNED, AND STORED ELECTRONICALLY.
  • You can find the form on the MSLA website at test.msla.org under Publications then Forms.
  • The surplus lines producing producer must start using the new Eligible Nonadmitted Insurance Form for new and renewed policies with an effective date of July 1, 2012 and forward.
  • MSLA still requires the declaration sheet and/or the endorsement for all transactions in SLIP. Please continue to file your policies in SLIP and follow the usual protocol in uploading your documentation and certifying your MTR online.

The Retail Producer Nonadmitted Insurance Form

The Mississippi Department of Insurance provided Bulletin (2012-4) issued on May 18, 2012 to provide the surplus lines insurance producers with the Nonadmitted Insurance Form to be used when making a nonadmitted market placement.

However, the Bulletin and the Form did not address those instances where a retail insurance producer (unlicensed surplus lines producer) makes a submission to a surplus lines insurance producer. Bulletin 2015-5 issued November 12, 2015 was issued to provide guidance for such instances.

Retail Insurance Producer

For the purposes of this Bulletin, a retail insurance producer is defined as a duly licensed insurance producer who is NOT licensed as a surplus lines insurance producer and who has tried unsuccessfully to place a client’s business in the admitted market. In such cases, the retail insurance producer would submit the client and risk to a surplus lines insurance producer in order to place the business in the nonadmitted market. The retail insurance producer would not deal directly with the nonadmitted insurer.

A retail insurance producer may execute a Retail Insurance Producer Nonadmitted Insurance Form as prescribed by the Commissioner of Insurance.

  • A retail insurance producer is to be duly licensed as an insurance producer who has tried unsuccessfully to place a client’s business in the admitted market.
  • The retail insurance producer would submit the client and the risk to a surplus lines insurance producer in order to place the business in the nonadmitted market.
  • The Retail form is to be completed by the retail insurance producer when submitting business to a surplus line insurance producer as supporting information as to the diligent search the retail producer conducted before determining the need for placement in the nonadmitted market.
  • This form may be retained by the surplus lines insurance producer that places the risk in the nonadmitted market in satisfaction of the diligent search requirements mandated by Miss. Code Ann. §83-21-19(1)(c) and §83-21-23(1).
  • If used by the surplus lines insurance producer to satisfy the diligent search requirements, this form must be attached by the surplus lines insurance producer to the certification form completed by the surplus lines insurance producer pursuant to MID Bulletin 2012-4.
  • The form can be found on the MSLA website at test.msla.org under Publications.
  • The retail producer must start using the new Retail Insurance Producer Nonadmitted Insurance Form for new and renewed policies with an effective date of 11/2016 and forward.
  • The retail producer is not required to hold a surplus lines insurance producer’s license in order to receive commission on a surplus lines placement if the risk was procured by a surplus lines insurance producer.

Exempt Commercial Purchaser

A surplus lines insurance producer is not required to perform a due diligence search when the surplus lines insurance producer is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser under the conditions provided in Miss. Code Ann. § 83-21-23(2); therefore, if the risk is for an exempt commercial purchaser, there is no need for the retail insurance producer to complete the Retail Insurance Producer Nonadmitted Insurance Form.

Declarations Page/Cover Notes/Binders

  • Within fifteen (15) days following the end of the month in which a policy is procured, the member shall submit copies of the Declarations Page or Cover Note of every policy procured under his or her license to the Mississippi Surplus Lines Association. In the event that no Declarations Page or Cover Note is available to the member within fifteen (15) days following the end of the month in which the policy is procured, the member shall submit copies of a binder or confirmation of placement of coverage to MSLA in lieu of such Declarations Page or Cover Note. In the event that a binder is submitted to MSLA, the member shall submit copies of the Declarations Page or Cover Note to the Association promptly upon receipt.

Documentation (inclusive of Layered Policies)

  • Supporting documentation must accompany the policy data that is submitted into SLIP. The Declaration Page(s) must include the following: the policy number, name of the insured, Notice to Policyholder, name of the surplus lines producing producer, effective and expiration dates, premium, and policy fees.
  • In the event two or more insurers participated in writing a risk, the premium will need to be reported under the respective insurer and documentation, such as the Schedule of Insurers; will need to accompany the filing.

Notice to Policyholder

Each surplus lines producer writing business in the state of Mississippi must meet the requirements of § 83-21-19 regarding notice to policyholders.

Every insurance contract procured and delivered pursuant to Sections 83-21-19 shall have stamped upon it in bold ten-point type, and bear the name of the producer who procured it, the following:

“NOTE: This insurance policy is issued pursuant to Mississippi law covering surplus lines insurance. The company issuing the policy is not licensed by the State of Mississippi, but is authorized to do business in Mississippi as a nonadmitted company. The policy is not protected by the Mississippi Insurance Guaranty Association in the event of the insurer’s insolvency.”

It is the responsibility of the licensee to obtain and affix the Notice to Policyholder legend on the document before submission to the Association.