Delaware Surplus Lines Insurance Brokers and Producers Must Use Updated Statement of Diligent Effort Form (SL-1923) Reflecting Notarization
Jul 23, 2014
Delaware Insurance Commissioner Karen Weldin Stewart issued Surplus Lines Bulletin No. 13 on June 30, 2014 to address the addition of a notary signature form to the current Statement of Diligent Effort (Form SL-1923 or “Form”). The addition was made after it had been determined that notarization is necessary for the Form to be considered as an affidavit.
To read the complete Bulletin No. 13, click here. The updated Form can be viewed by clicking here.
All surplus lines brokers and active property and casualty insurance producers licensed in Delaware must now use the updated Form providing for notarization. The Form enables reporting of declinations obtained during the performance of a “diligent search” conducted prior to placing insurance for a Delaware home state insured with a nonadmitted surplus lines insurer. The Form must be signed by the individual who conducted the diligent search.
The Statement of Diligent Effort Form reports the results of a “diligent search” required of Delaware surplus lines brokers or active property and casualty insurance producers under state law. Prior to procurement of insurance for a home state insured from a nonadmitted insurer, Delaware brokers or producers must make a “diligent effort” to obtain insurance from insurers admitted to transact, and that are actually writing that particular type of insurance in the state. Declinations from admitted insurers serve as confirmation of the effort.
Delaware surplus lines brokers must keep records of each surplus lines coverage procured for a home state insured. As provided by 18 Del. C. §1923 (14), these records must include “An affidavit on a form prescribed by the Commissioner as to the diligent effort to place the coverage with admitted insurers . . .” The revised Form is designed to fulfill the affidavit requirement.
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