Surplus Lines Insurance: 20 FAQs for 2020

Locke Lord LLP
Contact

As we embark upon a new decade, the surplus lines insurance market has never been stronger.  Growth in specialty products and demand for insurance protection in an increasingly dynamic, technological climate has continued to drive excess and surplus lines business. In many cases, these changes have resulted in a new, “fresh” look at many of the statutory and regulatory standards, restrictions and allowances applicable to surplus lines insureds, brokers and insurers alike.

This article presents twenty “frequently asked questions” by insurance professionals who have a fundamental understanding of excess and surplus lines insurance but seek to understand the nuances of federal and state-specific surplus lines insurance laws.

LAWS APPLICABLE TO THE SURPLUS LINES INSURANCE INDUSTRY

  1. What laws apply to the surplus lines insurance market?

While surplus lines insurers are excused from filing rates and forms, surplus lines insurance policies are not completely exempt from state regulation.  For example, many states expressly apply their cancellation and nonrenewal of insurance policy requirements to the surplus lines market.  Some states that traditionally prohibit the insurance of punitive damages nevertheless allow surplus lines insurers to assume such risks.  Jurisdictions also differ as to whether defense-within-limits clauses and claims-made policy standards apply to the surplus lines market, to name just a few.

  1. Can personal and commercial automobile insurance be written with a surplus lines insurer?

It usually depends on the purpose of the insurance.  Most states specifically require that any automobile insurance seeking to satisfy the “financial responsibility” requirements of the driver under a state’s applicable motor vehicle laws be offered only by an admitted (licensed) insurer in the state.  Many jurisdictions allow for “excess” insurance beyond the financial responsibility layer to be satisfied through the surplus lines market.  Moreover, some (but not all) states allow cargo financial responsibility requirements, “Hired and Non-Owned Auto” (HNOA) and other forms of commercial automobile insurance policies to be satisfied through the surplus lines market, subject to a number of various restrictions and limitations.

In the commercial market, some states permit financial responsibility requirements to be satisfied via a surplus lines policy for certain types of commercial vehicles.  As commercial automobile programs become more specialized and incorporate technological platforms (such as car-sharing and peer-to-peer services), traditional financial responsibility laws are being revisited.  For example, many states have enacted legislation in the last few years allowing for the financial responsibility requirements of drivers for “transportation network companies” or “TNCs” such as Uber and Lyft to be satisfied through the surplus lines market.  However, states differ as to whether commercial automobile programs may satisfy the financial responsibility requirements of their on-duty drivers through the surplus lines market when such states have not otherwise granted express authority to do so, such as in the TNC context.

  1. Does the Terrorism Risk Insurance Act (TRIA) apply to surplus lines policies?

TRIA applies to surplus lines insurance policies and, depending on the nature of the policy, TRIA can even capture insurance coverage issued to non-U.S. individuals with risks residing in the United States.  Under TRIA, an insurer is required to “make available” terrorism coverage on certain lines of commercial property and casualty insurance policies.  The term “insurer” is defined under TRIA to include all licensed insurers in the U.S. as well as surplus lines insurers.  Under TRIA, whether or not an insurer must “make available” terrorism coverage hinges on whether the risk itself is located in the U.S. (or with respect to an U.S. air carrier, flag vessel or at the premises of a U.S. mission), not where the insured resides.

However, depending on the amount of actual risk actually located or otherwise attributable to commercial property and casualty risks in the U.S., federal regulations provide guidance that small amounts of U.S. risk or commercial P&C exposure in proportion to an insured’s global risk are considered “incidental” and not subject to TRIA.

  1. Is policyholder consent required for an insurer to transfer a surplus lines policy to another insurance company?

Most states do not expressly apply their novation, transfer and/or assumption reinsurance consent requirements to the transfer of surplus lines policies as set forth under their applicable insurance codes.  However, a number of states still require that the surplus lines insurer abide by the applicable policyholder notification requirements.  Moreover, general principles of contract law could nevertheless prohibit the transfer absent consent from the applicable policyholder.

Some states are beginning to enact legislation to expressly allow for “insurance business transfers” of insurance policies between insurance companies applicable to both the admitted and surplus lines markets.

PERMISSIBLE TYPES OF SURPLUS LINES INSURANCE

  1. What lines of insurance may be written by a surplus lines insurer?

It depends on the state.  While the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) authorizes the placement of property and casualty insurance coverage on a surplus lines basis, a number of states, such as New York, expressly prohibit certain lines of insurance that are viewed as traditional lines of property and casualty insurance in other states from being exported to the nonadmitted market, such as financial guaranty insurance.  Some states expressly allow for disability insurance to be written on a surplus lines basis, while others only allow narrow forms of “high limit” disability products to be exported.  Workers’ compensation insurance is also treated differently among the various states.

There has been an increased push by the National Association of Insurance Commissioners (NAIC) in recent years to enact model legislation allowing for limited forms of health insurance (including short term medical, international medical and excess disability) to be written on a surplus lines basis.  A number of states have already enacted laws allowing for certain types of health insurance to be written through the nonadmitted market.  A select number of states have no restrictions whatsoever on the lines of insurance business that may be written on a surplus lines basis.

  1. If a state only allows for surplus lines insurance policies to provide property and casualty coverage, can the policy provide “ancillary” non-P&C coverage under a multi-peril insurance product?

While a handful of such states in practice allow flexibility as to the issuance of non-property and casualty insurance coverage on a surplus lines basis, the general answer is no.  For example, a travel insurance policy that offers to reimburse the insured for medical costs incurred while the insured is on a trip provides the insured a form of health insurance coverage that may not be offered through the surplus lines market in many states.

FILINGS, TAXES AND FEES

  1. What policy filings are required?

While surplus lines insurers are generally exempt from the rate and form filing requirements applicable to licensed insurance companies, most states that have surplus lines associations require filing of the surplus lines policy, and some of these associations may decline to “stamp” the policy (i.e., acknowledge the policy is acceptable under the state’s surplus lines laws and charge a stamping fee in connection therewith) if it offers insurance coverage in contravention of applicable law.  Moreover, states that maintain stamping offices often levy a fee to stamp the policy.

At least one jurisdiction (New York) also requires the filing of surplus lines producer agreements with insurance carriers that grant the surplus lines broker binding authority as well, and the Excess Line Association of New York encourages specific language be utilized in such agreements.

  1. Who is responsible for the payment of surplus lines premium taxes?

Traditionally, the surplus lines broker is legally responsible for the payment of surplus lines premium taxes, but some states hold the insured and/or the surplus lines insurer also liable for such taxes if the broker does not satisfy its legal obligation.

Most states allow the surplus lines broker to pass the tax on to the insured.  However, some states treat the payment by the insured of the surplus lines premium tax as an additional “fee” levied on the insured, and consequently that the broker obtain a written acknowledgment from the insured that its payment of the tax is in addition to the premium under the insured’s insurance policy.

  1. Where are surplus lines premium taxes paid on group insurance policies?

The NRRA generally requires that all surplus lines premium taxes be paid to the “home state” of the insured.  Under the NRRA, the home state of an affiliated group is the state of the member of the group that ‎has the largest percentage of premiums attributed to it.  An “affiliated group” is comprised of ‎entities that are under common control.‎

While the NRRA addresses how to treat group policies where all insureds are affiliated, the NRRA is silent as to determining the home state of nonaffiliated groups.  As a result, many states take the position that every certificate issued is its own policy and the certificate holder/member’s domiciliary state is considered the “home state” for each such certificate and require surplus lines premium tax be remitted accordingly.  This rule is expressly codified in many U.S. jurisdictions with respect to surplus lines group policies issued through risk purchasing groups (RPGs) as well.

  1. Can surplus lines brokers charge clients fees other than the premium set forth in the insurance policy?

It depends on the jurisdiction.  Some states expressly prohibit all forms of broker fees, whether charged on admitted or surplus lines placements.  Other states provide more leniency as to the surplus lines market in particular.  For example, Florida prohibits most types of broker fees charged on admitted insurance policies but amended its surplus lines laws in 2019 to specifically allow for the charging of “reasonable” broker fees on surplus lines insurance policies.  Some other states only allow specific kinds of surplus lines broker fees, such as fees only on commercial insurance policies or fees meant to solely reimburse the costs of the surplus lines broker.

Nearly all states that allow for surplus lines broker fees require that the insured provide its written consent prior to being charged such fee, and some states require that such written consent contain disclosures to the insured relating to the computation of the fee and the various sources of the surplus lines broker’s compensation.

DILIGENT SEARCH REQUIREMENT

  1. How is the diligent search requirement satisfied?

Assuming no exemption is available to a surplus lines broker or its retail insurance broker partner (such as a listing on the export list or insurance issued to an exempt commercial purchaser), most states require three (3) declinations to be obtained from admitted insurance companies, but this is not uniform throughout the country.  For example, in Maine, under Bulletin 439 (November 26, 2019) “doing a specific number of inquiries does not mean that the producer has fulfilled this requirement.”  By contrast, a few states (e.g., Louisiana) have eliminated the diligent search requirement altogether.

Some states require that evidence of the procurement of declinations simply be maintained in the offices of the surplus lines broker; whereas, others require that affidavits be filed with the applicable insurance department or surplus lines stamping office.  A number of states expressly require the diligent search to be repeated each time a particular policy is renewed.

  1. Does the diligent search need to be performed on a per-risk [insured] basis?

Usually, yes.  Some states have narrow exceptions in some instances, particularly in the group policy context.  For example, some states allow professional liability coverage written on a group basis through an RPG to satisfy the diligent search requirement one time in that state for all members of the RPG residing in that state during a given time period.  By contrast, many states require that the diligent search be completed as to each certificate holder under a non-RPG group policy.

  1. What qualifies as a permissible declination?

Many states do not allow price to be the sole factor for obtaining a declination, i.e., exporting to the nonadmitted market simply because it’s cheaper will not suffice.  Moreover, some states do not recognize a declination with respect to a multi-peril policy where components of such policy could be written by the admitted market (and some states, like California, only allow exportation in such case if commissioner approval is granted).  In addition, most states do not recognize multiple declinations obtained from both an insurer as well as an affiliate thereof, and some states do not allow the placement of surplus lines insurance with a nonadmitted insurer that is an affiliate of an admitted insurer from which a declination has been obtained.

ELIGIBILITY, MARKETING AND PERMISSIBLE ACTIVITIES

  1. How does an alien (non-U.S.) insurance company become eligible to write surplus lines insurance in the United States?

Alien (non-U.S.) insurance companies can write surplus lines business across the United States if they are listed on the Quarterly Listing of Alien Insurers (Quarterly List) as maintained by the NAIC which requires, among other things, an application to be submitted thereto and the establishment of a trust fund as security for U.S. policyholders.  The information as reported to the NAIC must be updated on an annual basis.  In addition, most alien insurers obtain listing on the eligibility lists or “White Lists” of the states that continue to maintain such lists in order to signal to the market that the insurance carrier is approved by the state.  The Quarterly List and White List filings and associated U.S. trust obligations are often maintained for alien insurers by U.S. regulatory counsel or other U.S.-based representatives.

Another increasingly-used method of entering the surplus lines market is through the establishment of a “domestic surplus lines insurer” that is formed in a state solely for the purpose of writing surplus lines coverage nationwide.  This strategy obviates the need to utilize two separate carriers to write surplus lines coverage in every U.S. jurisdiction (because traditional “admitted” companies cannot write surplus lines coverage in their home states) as well as the need to maintain a fully-licensed admitted carrier.  Currently, 21 states have adopted domestic surplus lines legislation.

  1. What activities can be conducted by a surplus lines insurer in a state?

While all states require surplus lines insurance to be placed through a surplus lines broker, some U.S. jurisdictions restrict even the presence of a surplus lines insurer or its employees within its borders.  For example, California generally takes the view that only surplus lines brokers may have a physical presence in the state with respect to surplus lines transactions, although domestic insurance companies affiliated with the surplus lines insurer may perform certain administrative functions unrelated to underwriting.  Moreover, all managerial and underwriting decisions must be conducted outside the state.  Other jurisdictions, such as New York, have adopted broader exceptions for licensed affiliates of surplus lines insurers to conduct certain functions on behalf thereof in the state.

In addition, depending on the state, surplus lines insurers may not always take advantage of various exceptions to licensing laws that are often available to admitted insurance companies, such as exemptions from adjuster licensing requirements applicable to authorized insurers in many states.

  1. What marketing activities can be conducted by surplus lines insurers and brokers?

While the majority of the states do not expressly address marketing activities in the surplus lines space, a number of large states place substantial restrictions on marketing unauthorized products.  For example, California and New York have promulgated robust guidance generally prohibiting the marketing of surplus lines products unless highly stringent standards are met, including the avoidance of targeted solicitation, restrictions on dissemination of certain policy terms, not calling attention to unauthorized insurers (subject to exceptions), and the ‎inclusion of disclaimers regarding the unavailability of certain products to insureds in the state‎.

As online and app-based marketing tools become more prevalent, the surplus lines advertising laws are being revisited once again by insurers, brokers and legislatures alike.

  1. Does an individual P&C insurance producer also need a surplus lines broker license to place insurance on behalf of a surplus lines agency? What if the individual acts as a retail producer for a wholesale surplus lines broker?

When an individual places coverage on behalf of a surplus lines brokerage firm, the individual must hold a surplus lines broker license as well; a “regular” property and casualty license is not sufficient.  However, most states allow a licensed property and casualty producer that does not hold a surplus lines license to act in a retail broker capacity when facilitating a transaction through a licensed surplus lines broker. However, strict attention must be paid to the activities conducted by the appropriately licensed entities to make sure that no regulatory lines are crossed, including but not limited to making sure that the surplus lines broker is the only licensee that negotiates insurance with an unauthorized insurer.

In addition, many states  allow the retail broker to conduct the diligent search of the admitted market, although states differ as to whether the retail broker or the wholesale surplus lines broker must keep evidence of, and execute affidavits relating to, the satisfaction of the diligent search requirement.

  1. Can surplus lines brokers place insurance policies with ineligible unauthorized insurers on a direct procurement basis?

Surplus lines brokers in the home state of the insured are generally prohibited from assisting insureds with respect to the “direct procurement” (also known as “independent procurement” or “direct placement”) of insurance coverage with unauthorized insurers.  Rather, most states require that a prospective insured leave its home state and obtain insurance coverage directly from the unauthorized insurance company (or through a non-domiciliary broker) in a jurisdiction where the insurance carrier is licensed.  However, some states allow brokers to act on behalf of their insureds and physically leave the state to procure the desired insurance coverage, provided that the broker abides by the governing tenets of direct procurement as if it were itself the insured.

FINES AND PENALTIES; INDUSTRY TRENDS

  1. Which individual or entity bears responsibility for violations of surplus lines law?

Traditionally, the surplus lines broker (and the designated responsible licensed producer of a surplus lines brokerage firm) is most exposed to sanctions in the form of fines and penalties for breach of applicable surplus lines insurance law as the licensed insurance actor in the state.  However, a number of states have enacted statutes allowing for the inspection of books and records of unauthorized insurers and the ability to levy fines in connection therewith.  In addition, there have been a few instances in recent years where states have entered into consent orders levying penalties and fines against surplus lines producers, insurers, and even insureds (particularly in the group policy context where master policyholders, such as associations, market surplus lines insurance products).

  1. What is “InsurTech” and how does it impact the surplus lines industry?

The term “InsurTech” refers to the wave of technological innovation impacting the insurance industry, from the way insurance is sold and administered to the types of risks for which insurance policies have evolved to provide coverage.

The surplus lines industry both benefits and suffers from the emergence of “InsurTech”.  The utilization of dynamic pricing models and other algorithmic underwriting guidelines takes time to work its way through the admitted market process of rate and form approval, which is generally bypassed by surplus lines insurers.  However, surplus lines products are required to be obtained through surplus lines brokers which restricts direct-to-consumer transactions. Moreover, surplus lines brokers must conduct a diligent search of the admitted market (absent an exception), which hinders the ability to quickly bind coverage through the internet or app-based products.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Locke Lord LLP | Attorney Advertising

Written by:

Locke Lord LLP
Contact
more
less

Locke Lord LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.