SURPLUS LINES

The majority of business written and quoted by DSU will be on a
surplus lines basis.  The responsibilities of the originating
producer will vary by state.  In all cases, if you have any questions
please do not hesitate to contact us.  DSU will handle all appropriate
filings and payment of taxes on the polices we write.

Colorado

The state of Colorado requires documentation the "full amount of
insurance required was not procurable, after diligent effort has been
made to do so, from among at least three admitted insurors authorized
to an actually transacting that line of business in this state."  Colorado
allows us to rely on the originating producer to make this determination.
IT IS THEREFORE THE ORIGINATING PRODUCER'S RESPONSIBILITY
TO DOCUMENT IN THEIR FILE THIS "DILIGENT EFFORT."


New Mexico

The state of New Mexico requires an affidavit from the originating producer.
DSU will produce this affidavit for you when we generate the binder for
coverage.  This affidavit must be completed, signed and returned to us
prior to our releasing final policy.

Texas

The state of Texas does not impose any special obligations on the originating
producer. Certain forms are required to be included with the policy as delivered
to the insured. Desert Specialty will include these forms with the polcy we send
to your agency. Filing of Surplus Lines Taxes will be hancled by Desert Specialty.