Frequently Asked Questions About Product Liability Insurance
Q. What is Product Recall?
The first step in managing the risk of product recalls is adequate advance planning. No amount of insurance can replace customer confidence lost due to poor planning and/or execution of a crisis and recall strategy. If the public perceives that your products are unsafe or that you are more concerned with your bottom line than their safety, your business will be lost.
The first step in managing the risk of product recalls is adequate advance planning. No amount of insurance can replace customer confidence lost due to poor planning and/or execution of a crisis and recall strategy. If the public perceives that your products are unsafe or that you are more concerned with your bottom line than their safety, your business will be lost.
Media in the 21st century has expanded at an incredible pace and now more than ever, bad news travels fast. Managing the message and providing accurate and timely information will greatly enhance the retrieval process. Together with an effective product recall plan, an appropriate crisis management plan should be in place for every company. The crisis management program goes beyond the recall plan and coordinates all activities associated with the crisis. The crisis management plan defines the crisis management team and their respective roles in responding to specific aspects of the crisis.
What Is The Surplus Line Association
• A nonprofit 501(c)(6) organization, the Association has been working with your state Department of Insurance CDI) to maintain a responsive and lawful State surplus line market
• The Association performs statutory duties within your state insurance industry under the direction and supervision of the CDI.
• The Association performs statutory duties within your state insurance industry under the direction and supervision of the CDI.
Industry Links
www.recalls.gov - Source for US Federal Government Recalls
www.fda.gov - US Food & Drug Administration
www.fsis.usda.gov - US Food Safety & Inspection Services
www.cpsc.gov - Consumer Products Safety Commission
www.nhtsa.dot.gov - National Highway Transportation Safety Administratio
www.epa.gov - Environmental Protection Agency
www.fda.gov - US Food & Drug Administration
www.fsis.usda.gov - US Food Safety & Inspection Services
www.cpsc.gov - Consumer Products Safety Commission
www.nhtsa.dot.gov - National Highway Transportation Safety Administratio
www.epa.gov - Environmental Protection Agency
Admitted vs. Non-Admitted Insurance Company
The Policy - Surplus line insurance policies are sold by "nonadmitted" carriers through licensed "surplus line brokers." Other insurance agents and brokers must go to a licensed surplus line brokerage to access non-admitted carriers. When such companies are on List of Eligible Surplus Line Insurers they are regulated.
Non-Admitted Or Surplus Line - Non-admitted does not mean non-regulated. Nonadmitted
carriers on the LESLI have been reviewed and approved by the State Department of Insurance for surplus line insurance in your state. Non-admitted carriers on the LESLI are actually “admitted” insurance carriers in their state or country of domicile other than your state. Surplus lines have been written by non-admitted carriers since the 1800’s, and generally are used when a risk is unusual, unusually large or when coverage is not available
from carriers licensed in your state.
Solvency Regulations - Non-admitted insurers on the LESLI must demonstrate
to the your State their financial stability, reputation and integrity; maintain a minimum of $15 million in capital and surplus at all times (for the State of California, please refer to your state requirements); have 3 years seasoning (or qualify for an exception); have a valid license to transact insurance in their domicile; file financial information with the Department of Insurance and adhere to specific capitalization, investment and solvency standards established under the your state Insurance Code.
State Law - Your State Department of Insurance (DI) is the official regulatory agency for insurance in your state, including the surplus line industry. The Surplus Line Association of your state is officially a nonprofit advisory organization, which performs
statutory duties for the DI. The Association’s recommendations are considered and incorporated into the legally binding decisions of the DI when appropriate.
Non-Admitted Means - Insurance carriers not licensed by your State (also called “surplus line carriers”)
• Carriers on the LESLI (are actually “admitted” insurance carriers, licensed in a state or country of domicile other than your State)
• Carriers that must meet strict surplus line laws and regulations in order to provide insurance to your State businesses and residents
• Carriers regulated by their state or country of domicile, including stringent requirements
regarding reputation and integrity, capitalization and solvency, licensing and business practices
Non-Admitted Or Surplus Line - Non-admitted does not mean non-regulated. Nonadmitted
carriers on the LESLI have been reviewed and approved by the State Department of Insurance for surplus line insurance in your state. Non-admitted carriers on the LESLI are actually “admitted” insurance carriers in their state or country of domicile other than your state. Surplus lines have been written by non-admitted carriers since the 1800’s, and generally are used when a risk is unusual, unusually large or when coverage is not available
from carriers licensed in your state.
Solvency Regulations - Non-admitted insurers on the LESLI must demonstrate
to the your State their financial stability, reputation and integrity; maintain a minimum of $15 million in capital and surplus at all times (for the State of California, please refer to your state requirements); have 3 years seasoning (or qualify for an exception); have a valid license to transact insurance in their domicile; file financial information with the Department of Insurance and adhere to specific capitalization, investment and solvency standards established under the your state Insurance Code.
State Law - Your State Department of Insurance (DI) is the official regulatory agency for insurance in your state, including the surplus line industry. The Surplus Line Association of your state is officially a nonprofit advisory organization, which performs
statutory duties for the DI. The Association’s recommendations are considered and incorporated into the legally binding decisions of the DI when appropriate.
Non-Admitted Means - Insurance carriers not licensed by your State (also called “surplus line carriers”)
• Carriers on the LESLI (are actually “admitted” insurance carriers, licensed in a state or country of domicile other than your State)
• Carriers that must meet strict surplus line laws and regulations in order to provide insurance to your State businesses and residents
• Carriers regulated by their state or country of domicile, including stringent requirements
regarding reputation and integrity, capitalization and solvency, licensing and business practices