Surplus Lines Insurance

Goals

To gain insights on the requirements and exceptions of offering non-admitted cyber coverage in various US states, including whether they require a diligent search and alternative solutions in cases where they do, by obtaining summaries of each state's rules of exportability, exceptions thereto, and export lists of surplus line insurance.

Early Findings

Alabama

  • Alabama does not maintain a list of eligible surplus line insurers but publishes a list of unauthorized insurers on the grounds of financial ineligibility or claims practices.
  • Additionally, the state does not maintain an export list.
  • The state has a Surplus Lines Association and an industrial insured exemption, including marine and transportation insurance, insured objects, such as vehicles or aircraft, that are owned and principally garaged outside the state, and property engaged in interstate commerce.
  • The stated does not allow domestic surplus insurers but allows alien insurers and those domiciled in a US jurisdiction.
  • Surplus lines brokers are required to pay a 6% tax.
  • Alabama does not require surplus lines brokers to perform a diligent search if: (1) “the broker has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market” and (2) “the exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a non-admitted insurer.”

Alaska

  • Alaska maintains an export list referred to as a placement list. The state also maintains a list of eligible surplus line insurers.
  • Alaska does not have a stamping office or a Surplus Lines Association. Additionally, the state does not have an industrial insurance exemption.
  • The state, however, recognizes the federal ECP definition under NRRA and has a statutory commercial purchaser exemption, including the exemption of marine and transportation insurance from its surplus lines insurance regulations.
  • The state does not allow domestic surplus insurers but allows alien insurers and those domiciled in a US jurisdiction.
  • Surplus lines brokers are required to pay a 2.7% tax.
  • Alaska does not require surplus lines brokers to perform a diligent search if: (1) “the broker has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market” and (2) “the exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a non-admitted insurer.”

Summary of Findings

  • During our preliminary research, we uncovered insights on the rules of exportability, exceptions thereto, and export lists of surplus line insurance for Alabama and Alaska.
  • We can continue to provide a similar summary for all the remaining 48 states. This will be performed in requests of 7 states per project. This information can be presented in a Google spreadsheet for easier analysis.
  • Kindly select the options provided below to continue with the research.

Proposed next steps:

You need to be the project owner to select a next step.