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NAPSLO2015ANNUALREPORT

The National Association of Professional Surplus Lines Offices (NAPSLO) is a professional trade association representing the surplus

lines industry and the wholesale distribution system. NAPSLO’s membership consists of wholesale brokers, companies and associate

members operating in over 1,500 offices representing tens of thousands of individual brokers, insurance company professionals,

underwriters and other insurance professionals worldwide conducting business in the U.S. surplus lines market. NAPSLO wholesale

broker members are placing an estimated $32.7 billion in surplus premium and NAPSLO insurance company members are under-

writing an estimated $29.7 billion in surplus lines premium, representing 87% and 79%, respectively, of the U.S. surplus lines market.

NAPSLO is unique in that both surplus lines brokers and insurance companies are voting members of the Association; thus NAPSLO

represents and speaks for the surplus lines wholesale marketplace. Since its incorporation in 1975, NAPSLO has become the

authoritative voice of the surplus lines industry, advocating for the industry’s vital role in the insurance marketplace and in providing

innovative solutions for complex insurance risks. Often called the “safety valve” of the insurance industry, surplus lines insurers fill

the need for coverage in the marketplace by insuring those risks that are declined by the underwriting processes of standard insurance

carriers. With the ability to accommodate a wide variety of risks, the surplus lines market acts as an effective supplement to the

standard market.

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ESNAPSLO is an association of insurance brokers, agents and underwriters who are

committed to the wholesale value distribution system and the surplus lines industry.

The Association provides networking opportunities, education and career develop-

ment programs, advocacy of the surplus lines market and value of the wholesale

distribution, and regulatory and legislative advocacy on behalf of its members.

NAPSLO is committed to the whole-

sale distribution system, freedom

from rate and form regulations, high

ethical standards, professionalism

and wholesale value.

C O N T E N T S :

Value of Membership Services 2Convention Committee 5Education Committee 7Mid-Year Committee 8Legislative Committee 9Career Awareness & Internship Committee 10Technology Committee 11Membership & Ethics Committee 12Political Action Committee 13Budget, Finance, Audit & Investments Committee 14NAPSLO Financials 16Past Presidents Council 17Board of Directors 17

Iam pleased to present NAPSLO’s Annual Report, on behalf of the NAPSLO Officers and Board of Directors, outlining the Association’s financial health and notable accomplishments during fiscal year 2015. I hope you will read it and be proud of

the Association and the benefits of your membership.

During the last year, NAPSLO’s successes include record-setting attendance at association networking events, sell-out registrationat NAPSLO education programs, growth in both career development and internship initiatives and tremendous progress in stateand federal regulatory and legislative advocacy.

NAPSLO’s Annual Convention and Mid-Year Leadership Forum continue to be the preeminent networking events for the industry.The 2015 Annual Convention in San Diego boasted a record-setting 4,179 attendees and the 2015 Mid-Year Leadership Forumdrew 750 registrants to Miami Beach, illustrating the great value these opportunities offer members.

With the addition of the NAPSLO Management Program, offered in partnership with Emory University’s Goizueta Business School,NAPSLO education programs continue to offer exceptional value and professional development training to members in allphases of their careers. The Association’s career development and internship programs also continue to grow and improve asmembers work with the NAPSLO team to help recruit and cultivate new talent into our great industry.

NAPSLO’s legislative and regulatory advocacy at the state and federal level is a key member benefit and our priority continues tobe promoting the uniformity and efficiencies intended by the NRRA. As a strong supporter of the state-based regulatory systemfor insurance, NAPSLO directs significant effort and resources towards state legislative advocacy. Significant NRRA uniformity victories were achieved during the year in Louisiana, Kansas and North Dakota.

We also continue to focus on educating federal lawmakers about issues facing the surplus lines insurance industry that are important to our members. Critical to this work is the NAPSLO PAC and its support to candidates for U.S. Congress whosephilosophies and attitudes are consistent with the goals of NAPSLO, the surplus lines industry and the wholesale distribution system. Thank you to the 250 individuals who supported the NAPSLO PAC financially during 2015, which marked not only thePAC’s 10th anniversary, but also the most contributors ever in a single year.

Emphasis on the value of the wholesale distribution system in the insurance marketplace also continues. During the last yearNAPSLO incorporated that message into all messaging, both internal and external, wherever appropriate. The Wholesale Valuemessage was also woven into a variety of paid advertising and earned editorial placements that NAPSLO secured throughout the year on behalf of members. NAPSLO is committed to spreading the message that its members bring expertise and innovationto complex insurance risks.

The Association’s financial position remains strong, allowing NAPSLO to provide valuable member services and to effectively promote, advocate and protect our industry. I hope you will review the financial information and metrics included in the AnnualReport.

Most importantly, I want to offer a hearty thank you to the more than 180 committee volunteers who helped make this workpossible. NAPSLO’s member-volunteers are vital to the Association’s ability to continue to offer unparalleled value to members.This dedication and engagement is an example of the optimism within our industry.

Gil HinePresident, 2015-2016

D E A R N A P S L O M E M B E R S ,

PRESIDENT’S MESSAGE >

2 N A P S L O 2 0 1 5 A N N U A L R E P O R T

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• NAPSLO invested $339,817 in stateand federal advocacy services, working on behalf of members, with primary focus on full imple-mentation of the NRRA.

• In May, members of NAPSLO’s Legislative Committee and Board of Directors met with 23 members ofCongress and their senior staff to discuss the NRRA and other insurancelegislative issues important to the surplus lines industry, including theJanuary 2015 enactment of the National Association of RegisteredAgents and Brokers, the January2015 renewal of the Terrorism Risk Insurance Act, and privatemarket solutions to flood insurance, among others.

• Contributions to the NAPSLO PAC came from 250 individuals and totaled $89,727, representing NAPSLO’s largest year of fundraisingin the PAC’s 10-year history and an increase of 27% from the previous year.

Increaseof27%

• A record-setting 4,179 members attended the 2015 NAPSLO AnnualConvention in San Diego, an increaseof 5% over the prior year.

Increaseof5%• 750 members attended the 2015

NAPSLO Mid-Year Leadership Forum in Miami Beach, with attendance up24% over the prior year.

The education program served 357 surplus lines professionals in classroomsettings, an increase of 30% over theprior year, with the addition of the Management Program.

Increaseof30%• Excess & Surplus Lines, 99 participants• NAPSLO’s Marcus Payne Advanced

E&S, 64 participants• Consultative Selling Skills,

112 participants• Management Operations,

48 participants• Executive Leadership Summit,

34 participants• Online courses, 514 participants

L E G I S L AT I O N / R E G U L AT I O N& PA C N E T w O R k I N G

E D U C AT I O N & P R O f E S S I O N A L D E V E L O P M E N T

P R O G R A M S

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NAPSLO MEMBERSERVICES

N A P S L O 2 0 1 5 A N N U A L R E P O R T 3

• Sponsored the 2015 A.M. Best Special Report-U.S. Surplus LinesMarket Review. The report found:— The surplus lines market is finan-

cially stable, surplus lines carrierratings are strong and outpacingthe standard market, with no financial impairments in the last 11 years;

— Domestic professional surpluslines insurers generated a 5.4%increase in DWP in 2014; and

— Surplus lines premium totaled$40.2 billion, reaching its highestpoint in history.

• Raised $429,882 to support thework of the Foundation. The Foundation ended fiscal year 2015with $6.7 million in assets.

• Committed $70,000 to scholarshipsfor 14 students.

• Conferred ASLI designation on 109industry professionals in 2015,bringing the total number of profes-sionals to earn the designation to2,166 since 1997.

• Placed 16 interns with 32 NAPSLOmember firms for summer positions,with an investment of $254,296 from NAPSLO, even more significant investments from NAPSLO memberhosts, and an unmatched experiencefor students interested in careers insurplus lines.

• Reached more than 1,400 college students with NAPSLO’s career development message by presentingat 22 symposiums and college visits.

• Grew NAPSLO’s Next Generationmembership to 778, up 5% from theprevious year, and created the NextGeneration Leadership Council.

Increaseof5%

• Hosted 124,138 user sessions onwww.napslo.org, up 40% over theprevious year.

Increaseof40%• Invested $158,296 in the Wholesale

Value messaging campaign in fiscalyear 2015, generating an estimated$170,013 in earned editorial place-ment, and approximately 2.2 millionimpressions through paid advertising.

• Sent 62 NAPSLO newsletters and e-News updates to members, with anaverage open rate of 33%.

• Utilized social media to drive traffic tothe NAPSLO blog and NAPSLO News. — The NAPSLO LinkedIn discussion

group has 3,691 members, an in-crease of 370 over the prior year.

— NAPSLO’s twitter feed has 1,420 followers. NAPSLO tweeted 36times during 2014, creating 36,524tweet impressions.

— The NAPSLO Facebook page has391 followers.

2015 Award Honorees• Charles A. McAlear

NAPSLO Industry AwardKevin T. Westrope, NAPSLO Immediate Past President

• 2015 President’s AwardJoel Cavaness, Risk Placement Services

• w. Dana Roehrig Past President’s AwardShavonne Gammage, Insurance House and Van Spanos, Great American Insurance Company

• Richard M. Bouhan Legislative Advocacy AwardBobby Owens, RPS Lexington

C A R E E R D E V E L O P M E N T, I N T E R N S H I P &

N A P S L O ’S N E x T G E N E R AT I O N

M A R k E T I N G &C O M M U N I C AT I O N S

D E R E k H U G H E S / N A P S L O E D U C AT I O N A L f O U N D AT I O N

As the authoritative voice of the surplus lines industry, NAPSLO’s commitment to providing

networking opportunities, regulatory and legislative advocacy and education and career devel-

opment programs for its members has remained unchanged since its incorporation in 1975.

The NAPSLO team collaborates with a large number of dedicated volunteers, who help ensure

your NAPSLO membership delivers an excellent return on your investment by providing valu-

able and impactful programs and services. Each member plays an important role in maximizing

the Association’s effectiveness. we would like to thank each of you for all you give back to

NAPSLO and the industry as members. This report highlights NAPSLO’s fiscal year 2015 goals,

accomplishments and financial position and celebrates the strength and relevance of the

wholesale distribution system and the surplus lines industry. Thank you for your continued

support of the Association. Brady R. kelley E x E C U T I V E D I R E C TO R

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The NAPSLO Annual Convention provides an opportunity for members to network and participatein programs and presentations relevant to the surpluslines industry. It is also a forum for members to network with one another and conduct both theirindividual firms’ business and the business of theAssociation.

2014-2015 key Initiatives and Accomplishments

• Hosted the 2015 Annual Convention in San Diego with a record4,179 attendees, an increase of 213 over the prior year.

• Hosted a sold-out Brokers’ Club.

• Featured Gary Sinise as keynote speaker, presented by the E.G.Lassiter Lecture Series, sponsored by the Derek Hughes/NAPSLOEducational Foundation. Sinise, an actor and dedicated advocateof America’s servicemen and women, spoke about his acting experience and his work with the Gary Sinise Foundation.

• Distributed Convention materials primarily electronically,through an improved mobile application that allowed attendeesto complete personal profiles and share contact information. The app featured a schedule of events, interactive venue mapsand attendee lists.

Gil Hine, ChairMcClelland & Hine, Inc.Laura BeckmannAmRISC, LPDennis BurtonACE WestchesterWyeth CoburnCRC RoselandKim CollinsGreat American Insurance GroupRobert CruzStarr Surplus LinesDave DowAmWINS BrokerageSteve DresnerCoverx SpecialtyChris GiadrosichColony SpecialtyRobert GilbertMarkel WholesaleJeff HoffmanAtlas General Insurance ServicesWendy HouserMarkel WholesaleStaci HughesGeneral StarMelissa MearsZurich North AmericaJoel MooreGulf Coast Claims ServiceKristen SkenderUSG Insurance Services, Inc.Daniel SullivanAEUI

2014-2015 COMMITTEE MEMBERS


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CONVENTION COMMITTEE

The NAPSLO Education Committee is committed toproviding high quality excess and surplus lines educa-tional offerings that meet the professional developmentneeds of NAPSLO members and associated industryconstituents throughout their careers while also meeting the education curriculum mission.


• Continued to offer and refine education and career developmentopportunities that support NAPSLO members throughout theircareers. In 2015, those included:— Excess & Surplus Lines, 99 participants— NAPSLO’s Marcus Payne Advanced E&S, 64 participants— Consultative Selling Skills, 112 participants— Management Operations, 48 participants— Executive Leadership Summit, 34 participants— Online courses, 514 participants

• Hosted the inaugural Surplus Lines Management Program atEmory University’s Goizueta Business School. The program,designed for first time supervisors who are making the transitionfrom technical expertise to leading and motivating people, whilealso building a book of business and managing the wholesale relationship process, is developed to make it applicable to bothbrokers and carriers.

• Continued to offer online programs, including Surplus Lines Compliance and the Surplus Lines Fundamentals Course, developedin partnership with The Institutes, reaching 514 participants in2014-2015 and 2,968 since their inception in September 2011and May 2012, respectively.

• Further developed and hosted six Consultative Selling Skills Programs, two private and four public, in 2015, designed fortransactional brokers and underwriters featuring a small groupsetting with hands-on activities that are customized for each student’s needs. The courses were fully sold and received very favorable reviews from students.

Joel D. Cavaness, Co-ChairRPS ItascaJacqueline M. Schaendorf, Co-ChairInsurance House, Inc.Nancy AlonsoVela Insurance ServicesNeil AlvarezAll Risks, Ltd.Valerie Brands-MartinPartners Specialty Group, LLCDawn BrostMaxum Indemnity CompanyJim CarneyNationwide E&S/SpecialtyJames CunninghamHartford Steam Boiler Inspection & Ins.Shawn DanhouserMarkel WholesaleChris DayHSC Specialty UnderwritersBenjamin DelinskiVela Insurance ServicesRich FideiGreenberg TraurigShavonne GammageInsurance House, Inc. Stephanie GeraghtyVela Insurance ServicesSteve GirardMarkel Wholesale

Glenn HargroveAll Risks, Ltd. Jeff HenryAmWINS GroupJim KilduffUnited Specialty Insurance Co.Edward LevyRPS ScottsdaleMichael MormanSocius Insurance ServicesTricia O’NeillZurichShaun OlssonNorthern States Agency, Inc.Cole PalmerGeneral Star Jeffrey PetigrowSwett & CrawfordLora RobbinsAll Risks, Ltd.Robert Sanders, Jr.Preferred Specialty, LLCMike ShannonTriFit Business DevelopmentRodney SmithLloyd’sJill TruittRT Specialty, LLCTracy WadeMaxum Indemnity Company



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EDUCATION COMMITTEE

• Continued to implement the NAPSLO Scholar-ship Program, providing scholarships to members from scheduled states to participatein NAPSLO schools. In 2015, scholarships were awarded to students from Rhode Island,Georgia, Massachusetts, Alabama and Georgia.

• Rebranded NAPSLO education programs tobetter define the benefits of participation to NAPSLO members and more accurately reflect course outcomes.


The Mid-Year Committee helps produce the Mid-Year Leadership Forum, which provides industryleadership a platform for networking and an exchange of ideas in a relaxed setting.


• Hosted 750 delegates at the 2015 Mid-Year LeadershipForum in Miami Beach, FL, an increase of 144 attendeesover the prior year.

• Expanded the Brokers’ Lounge to provide attendees withmore meeting space.

• Presented a Leadership Session featuring Kim Lear, contentmanager for BridgeWorks. Lear, an expert in multigenera-tional workforces, spoke to attendees about how to harnessthe power of the Millennials in an organization. Lear andDave Leonard, RSUI, moderated a panel discussion afterher presentation. Panelists were Nick Abraham, Markel;Tony Gresham, AmWINS Access; Gene Keating, IAT InsuranceGroup; and Jim Roe, Arlington/Roe & Co.

David Leonard, ChairRSUI

Robert AbramsonAmWINS Brokerage

Larry C. BobbInsurance Intermediaries, Inc.

Katie Sue ChristoffersonRT Specialty, LLC

Randy DossCRC Insurance Services, Inc.

Daniel DrennanEnvironmental Ins. Services

Marlo EdwardsArgo Group US

Douglas GoodeRockhill

Michael RecanatiniGeneral Star

Martin SandosAll Risks, Ltd.

Scott SmithRSUI

Melissa WilliamsCRC Denver

MID-YEAR COMMITTEE


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The Legislative Committee is dedicated to promotingthe legislative and regulatory interests of NAPSLOmembers and the surplus lines industry.


• Monitored all state and federal regulations and legislation of interest, or with potential impacts to, the surplus lines industryand provided members with access to online legislative trackingtools throughout the year as state and federal bills developed.

• Continued to build upon, and support the successes of, the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA), including implementation of the “home state” approach to theregulation and taxation of surplus lines transactions, bringingmuch needed efficiency, clarity and uniformity for the industry.We saw three major NRRA state uniformity victories this year.Kansas, Louisiana and North Dakota all passed legislation to implement the 100% home state tax approach. These states previously required premium to be allocated, and taxes to becollected, based on tax rates in each state where the riskresided, with Louisiana doing so as a member of NIMA. Thesestates join 38 other states where surplus lines taxes are calcu-lated at the home state’s tax rate on 100% of the premium andretained 100% by the home state.

• Thirty-two members of the NAPSLO Legislative and ExecutiveCommittees met with 23 offices of members of Congress duringNAPSLO’s annual Legislative Fly-In in Washington, D.C. in May2015. The Committee advocated on behalf of the NAPSLO membership to educate members of Congress on issues of importance to NAPSLO members and the surplus lines industry.

NAPSLO used time with the members to help educate themabout the surplus lines industry and to focus on three main issues impacting surplus lines: (1) revising the definition of private flood insurance to ensure surplus lines insurers are eligible to provide private market solutions to consumers in need of solutions to unique and complex flood risks; (2) empha-

sizing the many successes of and asking for Congress’ continued support and protectionof the NRRA; and (3) thanking Congress forthe passage of the National Association ofRegistered Agents and Brokers.

• Issued comprehensive updates pertaining to state and federal legislative and regula-tory issues and activities impacting the NAPSLO membership.

Scott Culler, Co-ChairMarkel wholesaleLana Parks, Co-ChairThe Parks Group, IncNeil AbernathyPeachtree Special Risk BrokersNicole AllenSwiss ReH. Michael ByrneDrinker Biddle & Reath, LLPPaul DeCotisDeCotis Insurance Assoc., Inc.David ErtelTravelers Excess and Surplus LinesRobert FermHall & Evans, LLCSeth FischerCap SpecialtyAndrew ForstenzerWilson ElserRonald GaborGabor Insurance Services, Inc.David GreenMaxum Indemnity CompanyAlan KaufmanBurns & Wilcox

Daniel MaherELANYYusuf MayetWorldwide Facilities, LLCBenjamin McKaySurplus Line Association of CADavid OcasekSurplus Line Association of ILBobby OwensRPS LexingtonJoseph PowellPowell & Roman, LLCVincent PuglieseVela Insurance ServicesSusan RiveraV3 Insurance PartnersJames RoeArlington/Roe & Co.Jan ShemanskeNautilus Insurance GroupErnie TaylorCentury Insurance Group


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LEGISLATIVE COMMITTEE



The Career Awareness & Internship Committee’s mis-sion is to network NAPSLO members to create interest,awareness and enthusiasm about surplus lines and to attract bright, enthusiastic college students to theindustry through NAPSLO’s internship program.


• Placed 16 interns in the 2015 NAPSLO Internship Program, hostedby 32 member firms. A mentor program was also developed toprovide additional guidance and support to interns throughoutthe program.

• Selected 10 NAPSLO interns to attend the 2015 Annual Convention.Selected Linsey Tabor as the J.H. Blades Scholar and selected Cameran McCarty and Houston Pittman as Bermuda Scholars.

• Promoted career opportunities in the industry through attendingindustry days, career fairs, conferences and classroom engage-ment. The Committee also coordinated efforts with the DerekHughes/NAPSLO Educational Foundation to reach 1,432 studentsthrough 22 speaking engagements, symposiums, career fairs andcollege visits.

• NAPSLO and the Foundation sponsored and presented at the TroyUniversity Surplus Lines Symposium – reaching 172 students from19 universities – and at the Illinois State Surplus Lines Symposiumwhere 169 students from 24 universities were reached.

• Grew NAPSLO’s Next Generation membership to 778, an increaseof 5% from the previous year. The Committee and Next Generationcontinued to more closely align NAPSLO’s Next Generation workwith NAPSLO committees, implementing the Next GenerationLeadership Council and encouraging Next Generation membersto volunteer for NAPSLO committee service.

• Worked with NAPSLO Board of Directors to realign the work ofthe Committee to create the Career Development & Next Generation Committee and the Internship Committee to allow a more focused effort on these very important initiatives in thecoming years.

Rodert Greenebaum, Co-ChairSwett & CrawfordMike Miller, Co-ChairNationwide E&S/SpecialtyNick AbrahamMarkel WholesaleMichelle AkackiWKFC Underwriting ManagersSusan AltrockArch InsuranceKim AnthonyRisk Ins. Brokers of the WestFrank BaronZurichAlyssa BouchardDavid BrinkerhoffRT Specialty, LLCJohanna BrooksGeneral StarTimothy ChaixR.E. Chaix & AssociatesTony ChimeraEnduranceDan ConfaloneMarkel WholesaleLaura CorwinVela Insurance ServicesKaren DavisNationwide E&S/SpecialtyTom DeCotisDeCotis Insurance Assoc., Inc.Jim DeSimoneWestern World Insurance GroupAmel GanaAmTrust E&S InsuranceSarah GavlickMarkel WholesaleKatie KatzmanAmWINS BrokerageDaniel J. KauffmanBurns & WilcoxNeil KesslerCRC DallasJeff LambMarkel CorporationStephanie LaurichS/L Stamping Office of TexasRhonda LoftonRPS ScottsdaleJeffrey LyngaasCapSpecialty

CAREER AwARENESS & INTERNSHIP COMMITTEE

Jonathan M. McKenzieCommercial Sector Ins. BrokersJennifer MierAmWINS BrokerageCatherine MoranAmTrust E&S Insurance ServicesTerri MoranVela Insurance ServicesClint L. NokesRSUIKatie OlsonSwiss Re Corporate SolutionsMatt ParkhurstGreat American Insurance Group

Susie ParksRPS ScottsdaleWhitney PomeroyCapSpecialtyKatherine RibleHallmark E&S Insurance Services, LLCPatti RothxS Brokers Insurance AgencyKathleen SandowNautilus Insurance GroupBrian SloanGreat American Insurance GroupChristine SnowbergerGeneral StarVan N. SpanoGreat American Insurance GroupCarol StarkCNAKatie StautbergGreat American Insurance GroupYiana StavrakisChad TrainorArlington/Roe & Co.Matt WillisNavigators Management Co. Marian WoodsMaxum Indemnity CompanyMichelle YukoAmWINS Brokerage


The Technology Committee monitors positions oncurrent industry technology issues, raises awarenessand influences development of technology standardsfor the industry and members, and works with otherindustry organizations on technology initiatives.


• Sponsored keynote address and assisted with program planning at the 2015 AAMGA Automation & Technology Conference in Orlando.

• Collaborated with other industry partners to fund the public relations and marketing efforts of the E&S Joint Working Group.The ESJWG is a volunteer alliance of industry organizations working to improve efficiencies.

• Monitored development of industry technology standards bymonitoring and participating in quarterly E&S Joint WorkingGroup calls, the ACORD Annual Conference, the AAMGA Auto-mation & Technology Conference, the IIABA Agents Council forTechnology Meeting and the ACORD Implementation Forum.

Davis Moore, Co-Chairworldwide facilities, Inc.f. Marshall Turner, Co-ChairMaxum Indemnity CompanyStacy BrownFreberg Environmental, Inc.Buddy CampoSCU New OrleansSteve EilersGen ReJim GulleyMilton O. Johnston & CompanyTimothy HortonUSG Insurance Services, Inc.John HortonAmRISC, LPJack KramerNortheast National BrokerageB. Scott LandryLane & Associates, Inc.Timothy MartinMorstan General Agency of FLDonna PowellPelican General AgencyEddie RobinsonNautilus Insurance GroupBryan SandersMarkel WholesaleBradley SessionsSouthern Alabama InsuranceBlake StockThe Combined GroupKevin SullivanxL Reinsurance America, Inc.Enid TurnerAmWINS Brokerage



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TECHNOLOGY COMMITTEE

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The Membership and Ethics Committee’s mission is to recommend new members to the Board of Directors. This includes recommendations for votingmembers: Wholesale Broker/Agent members, Company members and Underwriting Managermembers, as well as non-voting members: Associatemembers, Life members and Honorary members.


• Reviewed 60 new membership applications and approved 20wholesale broker applications, 1 company application, 4 under-writing manager applications and 31 association applications.

• Supported the Membership Management Portal originally launched in July 2014. Additional improvements to the portal were completed before its second launch in June 2015.

Carlton Maner, ChairAxIS InsuranceLaura AllenRPS Fort LauderdaleAndrew BownRFIB Group LimitedRobert CecconiSwiss Re Corporate SolutionsRoss DriscollNational E&S Insurance, Inc.Marsh DuncanColony Insurance CompanyDennis DunneTrigon, Inc.John FarreyBurns & Farrey, P.C.Steve FrankeScottsdale Insurance CompanyLindy GardnerAdmiral Insurance Company

MEMBERSHIP & ETHICS COMMITTEETimothy HochkeppelWestern World Insurance Group

Maria HohenseeLane & Associates, Inc. Robert ItzingerRT Specialty, LLCRobert JonesGeneral StarLen MikulskiAmerican Empire S/L Ins. Co.William H. SessionsSouthern Alabama InsuranceJeff ShortPartners Specialty Group, LLCChris SiegelSouthern Ins. Underwriters, Inc.


writes would themselves qualifyfor Company membership. AssociateDefined as an individual, firm ororganization that does not qualifyfor voting membership, but sup-plies services to voting membersand/or supports the wholesale excess/surplus lines system.LifeMembership is granted to eachPast President of the Association.HonoraryAn individual nominated andelected by the Board of Directors.

wholesale BrokerDefined as a sole proprietorship,partnership or corporation licensedin at least one jurisdiction withinthe U.S. or Canada as a broker,agent or managing general agent,which is engaged in an insurancebusiness principally as a wholesaler.CompanyDefined as a risk-bearing insurer,incorporated or organized in anystate in the U.S. or Canada, engaged in the writing of insuranceprincipally through wholesale broker/agents.Underwriting ManagerDefined as a firm which derives its business from wholesalers andhas specific underwriting authorityin one or more risk-bearing insurersfor specified classes of business indesignated geographic areas andthe companies for whom it under-

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N A P S LO M E M B E RS BY T Y P E

Underwriting Managers

43Companies

63Wholesale Brokers 375

Branches 818

Associates 228

Total Member Offices

1,527


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The NAPSLO Political Action Committee (PAC) man-ages NAPSLO’s efforts to support candidates for theU.S. House of Representatives and Senate whosephilosophies and attitudes are consistent with thegoals of NAPSLO, the surplus lines industry and thewholesale distribution system.2014-2015 key Initiatives and Accomplishments

• Received $89,727 in contributions from 250 contributions fromindividual NAPSLO members, setting a record for both the num-ber of contributors and the total contributions.

• Contributed $78,000 to federal candidates whose philosophiesare consistent with NAPSLO members’ goals.

• Enhanced efforts to raise awareness about the purpose of theNAPSLO PAC, and the importance of member support, withmore targeted messaging in NAPSLO publications and an up-

Harry Johnson, Co-ChairJohnson & Johnson, Inc.Dave Obenauer, Co-ChairCRC wholesale GroupJosh AmmonsAmWINS BrokerageJeremy ChaseleyZurichJohn D. CurryAtlantic Casualty Insurance Co. John FarreyBurns & Farrey, P.C.Keith HinsonSLB Insurance Group of LAMimi FiskeMarkel CorporationAmicia HineMcClelland & Hine, Inc. Keith HinsonSLB Insurance Group of LAMichael JamesChesterfield Insurance Brokers

Henry LopezNavigators Management Co.Mark MorganBrown & Riding Insurance Svcs.David PalmerGenesee GeneralScott SauterAll Risks, Ltd.David SchwartzRIBSBrian SchwarzbachAtlantic Casualty Insurance Co.Chris TimmCentury Insurance GroupSharon WardBurns & WilcoxJason WexlerColony SpecialtyGarick ZillgittRockhill


POLITICAL ACTION COMMITTEE

Gold Contributor -$2,500 and aboveNick CorteziSteve DeCarloJames DrinkwaterRobert GreenebaumHarry JohnsonAlan KaufmanDavid LeonardCarlton ManerMatt NicholsDave ObenauerAlison OliphantMarshall TurnerKevin WestropeSilver Contributor -$1,000 - $2,499Kurt BingemanJoel CavanessSkip CooperScott CullerThomas DillonEmployees of MHIDaniel KaufmanBrady KelleyJeffrey McNattMichael MillerDavis MooreLana ParksBryan SandersJacque SchaendorfChris Timm

Contributor - Under $1,000George AbernathyNick AbrahamPhilip AdamsEvan AldrichCorey AlisonJerome AlongiSteve AlvarezJosh AmmonsCushman AndrewsJeff AndrewsTodd AtwoodMasha AustinGreg BakerRobert BaloghJames BarclayNathan BernsBob BlackJake BlackshearLynn BordelonJulia BordelonLynn BordelonDan BorgonovoMatthew BradyStacy BrueggingMartha BuretzPhil BurkeMichael ByrneShannon CampbellBuddy CampoErika Carrillo

Martha CarruthAmber CarverThomas CesareTimothy ChaixJeremy ChaseleyLorrie CheshierJim ChristophersonWyeth CoburnWil CooperAaron CormierFred CuratoloShannon DahlkeShawn DanhouserJon DanileKaren DavisDeborah DeenDennis DeLucaJames DeSimoneHeather DeuganJeff DiefenbachCassandra DiMarcoRandy DossDavid DowKristin DowneyJeffrey DunnKenneth EcholsSteve EilersDiana EngelJames EptingCasey EvansJohn FarreyMimi Fiske

Vicky FlemingMichael FogartyTroy FornofAndy ForstenzerSandy FosterHelen FranzJacqueline FrischJulienne FritzMarc FuhrmanSam GardnerDru GarlandThomas GarlandBill GatewoodRich GoblerHarvey GoldenbergDawn GordonGary GrindleSarah GuzzettaHank HaldemanAnastasia HarrisRon HelvestonJames HemkinSusan HendersonAmicia HineKeith HinsonBernice HollowayNicole HuckstorfLori HunterJeffrey JamisonMatt JarrettBeth JenkinsLorelei Johansen

Corinne JonesRandall JonesKevin KeaneJoy KellerKathryn KerekesKristin KerriganJennifer KesselLawrence KesslerNeil KesslerKeri KishMarie KovacikKathleen KroegerAlex KullmanTheresa LallyMariann LausasJoseph LestonMike LohbrunnerGreg LondonHenry LopezBen LoweryGregory LudwigDaniel MaherShawn MakowskiTimothy MakowskiClifford MapesCarlos MarcoJohn MartinMichael MasucciTom MatheJason McDanielsJonathan McKenzieMelissa Mears

John MeetzJoe MezzanoAnthony MontanoRobert MugaveroDaniel MuldowneyChristopher NarronWilliam NicholsHardy NixClint NokesCindy NorwoodDavid OcasekKayla OldhamConor O'KearyKatie OlsonJudd O'NealBobby OwensDavid PagoumianKiera PalmerPriya PatelBarbara PayonkChip PecchioLisa PetrovichMelissa PolkaWhitney PomeroyBetty PorterRyan PurdyJustin PurdyScott PurviancePamela QuiliciKelly RadkowskiWendy ReichCasey Rollison

Ryan RouxPaul RovelliGregory RubelSarah RubleJennifer RyanRobert SandersJose SantiagoScott SauterGreg SchenendorfKelly SchermBrian SchwarzbachBradley SessionsMatthew SheehanKevin SheltonJanet ShemanskeTony SidoniBrandon SielenNatalie SienkiewiczJames SipichKristen SkenderBenjamin SloopPaul SmithJohn SparlingPaul SpringmanKelly StainbackYiana StavrakisBryant SteeleBonnie SteenMeryl SteinzorTim StoneJeffrey StuartTodd Teitell

Adam TerryMatt ThomasDavid TooleyArlene TouziBrent TredwayKevin TurnerKahlil TurnerJoshua VengleyTracy WadeSharon WardDan WentzBarry WhittonJason WilliamsJohn WillseyBrad WoodCharles WoodDavid WoodJohn WoodMichael WoodKelly YagerTerry YounghanzMichael YovinoJill ZaunerGarick ZilgittChristopher Zoidis

2015

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dated presence on the NAPSLO PAC website.In celebration of the PAC’s 10th anniversary,an updated PAC video was also debuted atthe 2015 Annual Convention.

The Budget, Finance, Audit & Investments Commit-tee assists the Board in overseeing the Association’slong-term financial health and manages the budgetprocess, periodic financial reporting and the annualaudit. In addition, the Committee assists NAPSLOstaff in managing Association assets and investments.


• The Financial Review Subcommittee reviewed NAPSLO’s financialstatements on a quarterly basis and worked with NAPSLO staff toaddress any questions or financial reporting issues that arose.The NAPSLO Board reviewed NAPSLO’s financial statements on aquarterly and annual basis to include September 30, January 31,April 30 and July 31.

• The Investment Review Subcommittee completed the implemen-tation of NAPSLO’s Investment Policy Statement (IPS), approvedby the NAPSLO Board in September 2013. The Subcommittee reviewed monthly investment reports from NAPSLO’s investmentmanager, Bradley, Foster & Sargent, to ensure compliance with theIPS and monitor investment performance in relation to portfoliobenchmarks.

• The Committee met with the independent auditors from MayerHoffman McCann (MHM) and discussed results of the July 31,2015 audit, including an unmodified audit opinion, no materialfinancial statement adjustments, and no material weaknesses inNAPSLO’s internal control structure. The final audit and corre-spondence regarding the audit and NAPSLO’s internal controlswere presented to the Board of Directors and all NAPSLO membersat the 2015 Annual Convention.

James C. Drinkwater, ChairAmwINS Brokerage

Jessica ClarkRockhill

Troy FornofUSG Insurance Services, Inc.

Todd GrayOak Street Funding

Angela HigbeaAmWINS Brokerage

Joy KellerSouthwest Risk, LP

Duffy KollerAmTrust E&S Insurance

Doug KrumreyAxIS Insurance

Phillip McCrorieRSUI

Lee SjostromRSUI

Thom SmithSullivan Brokers


BUDGET, f INANCE, AUDIT & INVESTMENTS COMMITTEE



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NAPSLO closed its 2015 fiscal year in a strong financial position.Revenue growth from attendance at the 2014 NAPSLO Annual Convention, 2015 Mid-Year Leadership Forum and NAPSLO educationprograms was invested in services and resources to enhance thevalue of NAPSLO services to members and continued to generatepositive net income for the Association.NAPSLO reported total revenues of $6.3 million, an increase of 5.5percent from 2014, and expenses of $6.2 million, a 10.6 percent increase from 2014. NAPSLO ended fiscal year 2015 with $6.8 million in net assets, providing continued strength and stability infinancial operations. Convention registration revenues increased significantly with 3,966members attending NAPSLO’s 2014 Annual Convention, along withgrowth in attendance at the 2015 Mid-Year Leadership Forum. With709 member firms representing 1,527 member offices, membershipdues, which renew in June of each year, remain steady and the duesschedule has not increased in the past five years.Increases in 2015 spending also resulted from growth in attendanceat NAPSLO’s events during the year, along with growth in the numberof NAPSLO committee volunteers supporting the Association’s committee work.

NAPSLO fINANCIALS


The state of the Association is strong as evidenced by its financialresults in fiscal year 2015. During the year, the Board of Directorsleveraged the continued improvement in the Association’s financialposition to make strategic investments in NAPSLO services and resources to enhance the value of services to members. These investments ranged from launching the new Surplus Lines Manage-ment Program to the continued investment in the wholesale valuemessaging campaign, all of which enhance the awareness and relevance of the surplus lines segment and its growing proportionof the insurance industry. The Association’s strong financial positionwill support continued investment in valuable services to NAPSLOmembers in the areas of wholesale value messaging, regulatoryand legislative advocacy and growing education and career development programs for NAPSLO members in the years to come. NAPSLO’s financial statements were reviewed by independent auditors, Mayer Hoffman McCann P.C. Their report included an unqualified audit opinion, no material financial statement adjust-ments, and noted no material weaknesses in NAPSLO’s internalcontrol structure.

N A P S LO BA L A N C E S H E E T N A P S LO I N CO M E STAT E M E N T

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The Past Presidents Council provides counsel to the current NAPSLO President and Board of Directors on issues and assists with special projectsas needed. Thirty-nine industry leaders have occupied the office of NAPSLOPresident since the Association’s inception in 1974, and a number of PastPresidents remain actively engaged in the industry and activities of the Association. This wealth of knowledge, experience and leadership is critically important and valuable to the NAPSLO Team, Officers and Boardof Directors in ensuring the continued success of the organization and itsmembership services and operations.

Hank Haldeman, ChairRobert AngleThomas BloomKevin BrooksJames BrysonMaureen CavistonJeremy CookeNicholas CorteziJohn CrowtherH. James GriffithDavid HartochLetha HeatonTapley JohnsonMarshall KathJohn Latham

Anthony MarkelCharles McAlearWilliam NewtonMatthew NicholsRoy OddyTimothy PedersenRichard PolizziRobert SargentPaul SpringmanNeil StricklandJoseph TimmonsLawrence WessonGary WestphalenKevin WestropeJohn Wood


PAST PRESIDENTS COUNCIL

NAPSLO STAffVicky FlemingAdministrative Assistant/Registration Manager

Julienne FritzDirector of Operations

Susan HendersonDirector of Marketing & Communications

Debbie Hill, CMPDirector of Meetings & Conventions

Brady KelleyExecutive Director

Keri Kish, J.D.Director of Government RelationsDenise MarshallExecutive AssistantJohn MeetzState Relations ManagerJustin MohnProject ManagerGreta RobertsAccounting & Membership ManagerJosh VengleySr. Enterprise Solutions Administrator

PRESIDENTGilbert C. Hine, Jr.McClelland & Hine, Inc.San Antonio, Tx

OffICERS

w H O L E S A L E B R O k E R D I R E C TO R S

V I C E P R ES I D E N TDavid E. LeonardRSUI Group, Inc.Atlanta, GA

S EC R E TA RYJames C. Drinkwater AmWINS BrokerageNew York, NY

T R EA S U R E RJacqueline M. SchaendorfInsurance House, Inc.Atlanta, GA

I M M E D I AT E PA ST P R ES I D E N THank HaldemanThe Sullivan GroupLos Angeles, CA

Scott A. CullerMarkel, West RegionWoodland Hills, CA

C O M PA N Y D I R E C TO R S

Carlton ManerAxIS InsuranceAlpharetta, GA

Michael D. MillerNationwide E&S/SpecialtyScottsdale, AZ

F. Marshall Turner Maxum Indemnity Co.Alpharetta, GA

Joel D. Cavaness Risk Placement Services, Inc.Itasca, IL

Robert J. Greenebaum, Jr.Swett & CrawfordChicago, IL

Harry L. Johnson IIJohnson & Johnson, Inc.Charleston, SC

Davis D. MooreWorldwide Facilities,Inc.Los Angeles, CA

Dave ObenauerCRC Wholesale GroupRoseland, NJ

Lana S. ParksThe Parks GroupArlington, Tx

•

© 2016 National Association of Professional Surplus Lines Offices, Ltd.

National Association of Professional Surplus LinesOffices, Ltd.

4131 N. Mulberry DriveSte. 200Kansas City, MO 64116816.741.3910www.napslo.org

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