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| On October 1, after nearly 2-1/2 years of
work, the Stamping Office successfully brought on-line a significant
redesign of its computer systems. In a time when cost overruns are the norm,
this project was completed both on time and within budget projections. Much of the software run on SLSOT's mini-computer (formerly an IBM System 36, now an AS/400) was created years ago specifically for the office's unique duties. It was clearly time to replace it with a system that could better adapt to changing requirements and could respond more flexibly to requests for information. By taking advantage of modern methodologies, we hoped to simplify maintenance as well and improve both data integrity and system efficiency. In partnership with Renaissance Systems, Inc., an Austin technology services firm, and coordinated by Elaine White, Director of Data Services, the Stamping Office embarked on a project to modernize its computer infrastructure and programming environment, with minimal disruption to business operations. The project covered virtually all facets of computer operations, including redesigning of all databases; updating of hardware; modernizing of programming languages; reworking programming logic to comply with modern programming constructs and facilitate future revisions; modifying all data entry, batch processing, and accounts receivable programs to enhance their functionality; and improving the system's reporting features. As a result of many hours of intense testing, we achieved success in all these areas. After taking time to get the kinks out of the new system, we will begin work on a project of immense interest to many of you - electronic filing. All work on the just-concluded system redesign proceeded with the goal of facilitating the processing of policy data electronically. We hope to release a Request for Proposal (RFP) for an electronic filing system by the end of the year. |
From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
What the GM Has to Say...
| September 11th will forever be regarded as a national
inflection point. Beyond the profound human tragedy of the terrorist attacks
and their effect on our way of life, the impact on our industry continues to
evolve. A comprehensive understanding of the magnitude of covered claims is
many months, if not years, away. Some credible estimates are placing gross
losses in excess of $70 billion. In addition to the obvious property and
liability losses, business interruption claims from insureds well removed
from the World Trade Center could reach staggering proportions. Some
analysts are already predicting major reinsurance recoverables collection
problems, probably leading to the subsequent insolvency of some insurers,
reinsurers, and Lloyd's syndicates. Those interests already lobbying for
federal regulation of insurance will use any resulting insurer failures as
further proof of the inadequacy of state regulation. A prolongation of the
recently-hardening market now seems a certainty. Ultimately, the industry
will review critically how it evaluates the exposures it insures. So will
risk managers. On a more personal note, one of our sister stamping offices, the Excess Line Association of New York, was located just a few blocks east of the World Trade Center. We are grateful that Dan Maher and his staff made it through the horrors of the eleventh with a lot of dust and some tears, but no serious injuries. Phil Ballinger, CPCU, ASLI General Manager |
From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
2001 SLSOT Board of
Directors
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The SLSOT Board of Directors assembled in Austin in
September for the quarterly business meeting to discuss Stamping Office
operations. |
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| (Left to right) Nathan E. Holt, Gainsco Companies; Dean Frigo, City of Amarillo; Cindy Kirk, City of Bryan; Chairman Donald E. Meyer, Texas General Agency, Inc.; Simon Bancroft, Swett & Crawford of Texas, Inc.; Jimmy E. Garcia, City Public Service, San Antonio; and Secretary W. Stephen Conner, Crump Insurance Services of Texas, Inc. (not pictured Vice-Chair Susan Bulla, City of Ft. Worth and George Z. Adkins, John L. Wortham & Son, L.L.P.) |
From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
New State Regs Require Reporting of Allocated Premium
| Recent regulations from both the Texas Department of Insurance and the Texas Comptroller make important changes in the reporting of surplus lines policies to the Stamping Office. For policies with non-Texas exposures, beginning November 1, 2001 you must report the total policy premium, rather than just the Texas portion. You will be required to show the premium allocation among Texas premium, premium for exposures in Other States, and premium that is tax Exempt. Stamping fee is only charged on the Texas premium. Please read carefully Stamping Office Bulletin #2001-10.1, which discusses these changes and methods of premium allocation, explains which policies do not need to be reported, and provides samples of revised reporting forms. If for some reason you did not receive a copy of this bulletin, you can read it on the SLSOT website at www.slsot.org/pman10.htm. |
From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
Texas Surplus Lines Composite Financial Information
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Composite year-end 2000 financial data for the 164 currently
eligible surplus lines insurers (119 U. S. Insurers, 45 Non-U.S. Insurers)
reflect declines in almost all areas. The number of insurers eligible to
write surplus lines business in Texas has declined from 175 in 1999.
Aggregate, average and median Capital and Surplus decreased. Underwriting
results improved, with an aggregate loss of $1.94 billion (although the
median underwriting loss increased to $1.13 million). Net income after tax
was significantly lower. We feel that the effect of the firming rates in the
market late in the year had a positive impact on underwriting results but
was not enough to offset the decline in investment income. (Return on
investment fell to 5.1% from 10.4% in 1999.) Gross and net premium on a
composite basis declined 9.6% and 20.5% respectively. On a positive note,
two leverage measures rose, with gross premium to surplus improving to 77%
and net premium to surplus improving to 41%, continuing a trend begun last
year. |
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From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
| If submitting a batch under your new ID license number (issued by the Texas Department of Insurance), please do not include any additional characters such as the prefix letters “S” or “SL”. |
From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
| We welcome Robert Cervantes to our staff. Robert joins us as a Records Prep Clerk in the Document Processing Department. |
From the Lone Star Lines -
October - December Issue 2001
Surplus Lines Stamping Office of Texas
Comparison of SLSOT Premium Processed
by Line of Business
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