For Immediate Release: July 2, 2008
Contact: Bill Walsh (651) 296-7531
Department of Commerce Appoints Interim Board for Surplus Lines Association of MN
(St. Paul, MN…) Minnesota Commissioner of Commerce Glenn Wilson today announced the appointment of Kathy Gallagher-Burton, Peter Geier, Jim Holm, Merlyn R. Larsen and Daniel D. Riley to the Interim Board of Directors for the newly established Surplus Lines Association of Minnesota. Commissioner Wilson also directed Manny Munson-Regala, Deputy Commissioner of Commerce to convene the Interim Board and to coordinate the organization of the association.
Gallagher-Burton is with the Robert Schneider Agency in Minnetonka. Geier is Vice President of Midwest General Brokerage of Minneapolis. Holm is President of the InterAgency of Plymouth. Larsen is President of Erickson-Larsen Inc of Maple Grove. Riley is Executive Vice President and CEO of the Minnesota Independent Insurance Agents in Eden Prairie.
The Surplus Lines Association is a non-profit association of surplus lines insurance brokers created by the legislature during the 2008 session in order to create a "stamping office" for insurance placed with companies that are not licensed in Minnesota. The interim board will serve no more than one year, giving the new association an opportunity to elect a new board from its membership.
Surplus lines deal almost exclusively with business customers and are used to place insurance with companies that are not licensed in Minnesota in cases where the coverage is not available from a licensed Minnesota insurance company. Surplus lines insurance brokers are licensed and regulated by the Department of Commerce.
In Minnesota, all surplus line placements will be filed with the association for review. The association will notify surplus line brokers of any filings that are determined to be incomplete or inaccurate and will request that the broker file a correction.
The Surplus Lines Association of Minnesota will inform its members of proper surplus lines procedures, cooperate with the Minnesota Department of Commerce in providing effective regulation and will act as a liaison between the Minnesota Department of Commerce and the surplus line brokerage community. The association will be funded by a processing fee, called a "stamping fee" earned for review of surplus line coverage.