News
Missing Producer Affidavits
Bulletin – Friday, December 10, 2010
Producers need to be aware that the rules on completing the Producer Affidavit (1609PR) are changing on January 1, 2011. The PSLA has announced a new penalty for producer’s who fail to return the completed 1609PR to the surplus lines licensee responsible for making the surplus lines filing.
The new fee of $50 per placement is chargeable to the producer who fails to return the 1609PR within the mandated 30 days. PSLA’s Electronic Filing System (EFS) has been modified to allow the surplus lines licensee to make an incomplete filing and at the same time report the producer who is in violation of the law for failure to supply the completed affidavit.
The missing 1609PR penalty fee of $50 is non-refundable and may not be charged to the insured. In addition to this penalty, the producer may be required to pay a late filing fee. This does not eliminate the writing producer’s requirement to submit the Producer Affidavit nor the surplus lines licensee’s duty to obtain and file the completed 1609PR.