Our History

The New Jersey Surplus Lines Association (NJSLA) is a non-profit association originally established in 1953.  We are committed to fostering the interests of licensed excess and surplus lines producers, carriers and service providers doing business and supporting those doing business in the state of New Jersey.   By working in cooperation with the New Jersey Department of Insurance, we assist these businesses in complying with state regulations, and provide our members with better understanding of changes to our industry.

The NJSLA has spent more than 65 years working to facilitate community involvement of those affiliated with our industry, promote higher education with scholarships, and provide a meeting place to exchange ideas.  Our members range from family businesses to large public companies dedicated to promoting the interests of producers, organizations, and individuals who support the excess and surplus lines industry and distribution system.

The NJSLA is active in New Jersey legislative and regulatory matters and advocates for the industry.  For example, during the early 1990s, the NJSLA worked with the NJ Department of Insurance and Banking (DOBI)  to allow for fees for wholesalers and freedom from rate and form.  In 1996, regulation approved allowing freedom of form, allowing a $50 policy fee.  This continued as we led an industry coalition toward the freedom of form legislation enacted in 2004. 

 The NJSLA was instrumental in the surplus lines policy fee increase as well as other regulatory modernization efforts.  In 2010 the NJSLA successfully advocated for a change to the law (P.L. 2010 c. 42) to delete the $50 maximum fee and to provide that the maximum amount shall be set forth by the Commissioner of Banking and Insurance by regulation.

In 2011, with input from the NJSLA, NJ DOBI adopted N.J.A.C 11:17B-3.2 which by regulation set fees as follows:

1. For personal lines, a fee not to exceed $50.00; and

2. For commercial lines, a fee equal to the greater of two percent of the premium for the applicable policy period or $100.00, but in no event in excess of $250.00.

 More recently the NJSLA worked in conjunction with WSIA and the Insurance Council of New Jersey in 2019 to oppose the New Jersey Insurance Fair Conduct Act.  The NJSLA continues to maintain a seat on the Commissioner’s Producer Advisory Council and remains in line with various other trade associations on important issues facing the surplus lines industry.

A few key additions to our organization were:

 In 1978, the NJSLA began to honor a Person of the Year at a banquet held in the spring.  The Person of the Year was chosen on their activity and merit within the Surplus Lines Insurance Industry within New Jersey.

New Jersey Surplus Lines Guaranty Fund started in 1984 in which it retroactively covered losses for Ambassador Insurance Company and North Eastern Insurance. It charged surplus lines companies $25,000 and there was a 4% guaranty fund tax added to all policies.

Helping our members educationally is part of the NJSLA mission as well.  On January 1, 1990 the New Jersey Surplus Lines School was started. This allowed NJSLA to offer Continuing Education Classes with credits to our members each year.  The organization also awards professional level and higher-level educational scholarships to provide growth opportunities for employees of our member companies.

In 2018, the NJSLA began its quarterly newsletter to ensure timely and relevant communication with its members.  The release of each newsletter, The Surplus Notes, is through our email distribution list.

The NJSLA has always been a charitable organization and one committed to the NJ community for insurance needs.  We provided assistance to members during the Guarantee Fund Crisis, when the Surplus Lines tax was raised, and provided assistance during Hurricane Sandy.  More recently we’ve held charity events and gave generously to Operation Healing Forces and the Community FoodBank of NJ. 

The Surplus Lines Association of New Jersey continues to support, educate and advocate for its members within the excess and surplus lines industry.

Thank you to our Past Presidents Jon Bannett, Frank Powell, Steve Powell, Dennis Pellegrino, Justin Raphael, Jane Dalli, and Wendy Certo for their assistance with information regarding NJSLA’s history.