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SurplusLinesFilingSurpluslinesbusinessofaanyinsurancecoveragenotacceptabletoyourstandardcontractcompaniesbanyunusualcoveragerequiringtailoringofcoveragewhichastandardmarketwouldnotbeequippedtohandlecanyspecialtycoveragedaccountspresentingcapacityproblems.BlossDillardInc.representsagroupofcompanieswhichwehavechosentoprovidestablereliableandnanciallysoundmarkets.AsacontractagentforthesecompaniesBDIhasbindingauthoritywithinthecontractlimits.YouasaproducerdonothavebindingauthoritybutcanhaveariskboundbytelephoningtheunderwritersatBDI.Surpluslinescompaniesmaybex1capprovedx1dbystateinsurancedepartmentsbutnotx18admitted.x19Non-admittedcompaniesarenotregulatedbythestateinsurancedepartments.Theirratesandformsarenotcontrolled.Theydonotlestatisticalresultsorpaytaxesdirectlytothestates.ThetaxesarecollectedandpaidbythelicensedexcesslinesbrokersuchasBlossDillardInc.FurtherthesecompaniesarenotmembersoftheStateGuarantyFunds.AsstatedaboveBlossDillardInc.holdsbrokerslicensesforthestatesinwhichtheyoperateandareresponsibleforthecompaniesthatareused.Theyarerequiredtokeepdetailedrecordslesurpluslinesafdavitsandpaytherequiredstatetax.SurpluslineslingsarerequiredbytheStateInsuranceDepartmentforallpolicieswritteninanon-admittedcompany.BlossDillardInc.willforwardtheformsrequiredbythestatewhenquotingapolicywritteninanon-admittedcompany.Theseformshavespecictimelimitsandmustbecompletedandreturnedwithyourrequesttobindthepolicy.TheratesoftaxationareestablishedbytheStateInsuranceDepartmentandmustbecollectedandremittedtothestatebyBlossDillardInc.PremiumAccountingTheindustry-wideattitudetowardpremiumcollectionandmodeofhandlinghasevolvedlikeallotherfacetsofthepropertyandcasualtyinsurancebusiness.Companypolicieshaverequiredatighteningofcollectionandremittanceprocedures.ThereforeweadheretothefollowingrequirementsAllissuedpolicieswillappearonamonthlycomputerizedaccountwhetherpreviouslyinvoicedorarrangementsmadefornancingthepremiumthroughoneoftherecognizedpremiumnanceorganizations.Respectivelyallcashexchangedwillbereectedonthemonthlyaccount.Itmightbewelltocalltoyourattentionthatarrangingforpremiumnancingdoesnotdischargetheobligationoftheagenttopayforallpoliciesordered.AnypoliciesthatarewrittenwithourdirectbillcompaniesAmericanModernHomeandBrickstreetdonotappearonthemonthlyagentstatements.Separatechecksareissuedforanycommissionsdueouragentsonthesetypesofaccounts.Policesthathavespecialpaymentrequirementsarenotedonthequotestheunderwriterissuesi.e.cashtobindneedpaymentwithin10daysetc.Thisdoesnotappearonanyinvoicesorstatementsissued.Atthetopleftofourmonthlyaccountisthecodenumberassignedtoyouragency.Itwillbemosthelpfulinproperlycreditingyouraccountifyouwillindicatethatcodenumberonyourchecks.ThoseagencieswhohaveestablishedcreditwithBlossDillardInc.willhave15daysfollowingthedateappearingatthetopofouraccountinwhichtoremit.Excepthowevertherearecertainmarketsthatdealonacashor10-dayremittancebasisandonpoliciesinvolvingthosemarketswewillcontinueinvoicing.Ourinvoicewillsetforththeduedate.Itisnecessarythatallproducerspaybyourpreparedaccount.Weaskthosefewagenciesstillsubmittingaccountscurrenttodiscontinuethispractice.Werecognizethatspecialproblemsrequirespecialhandling.IfforsomereasonpaymentcannotbemadebytheduedateapromptphonecalltoourAccountingDepartmentwillusuallysolvetheproblem.Itisrecognizedthatfromtimetotimeerrorsoursoryoursmayoccur.Ifyouquestionitemsonyouraccountpleasecallthemtoourattentionpromptlyandwewilltakeimmediateactiontoresolvethem.Ourbusinesshasbecomeincreasinglycomplexandtodayx19scostofhandlingdoesnotallowanymarginforduplicationofeffort.Ourmainobjectiveistomakedoingbusinessbothmorepleasantandmoreprotableforallconcerned.