What Are The General Requirements For Surplus Lines Insurance?

  1. If certain insurance coverage cannot be obtained on terms acceptable to the insured from authorized insurers, insurance called surplus line may be obtained from unauthorized insurers.
  2. The insurance must be procured through a licensed surplus line broker.
  3. The full amount of insurance required must not be procurable, after diligent effort, from among the insurers authorized to transact that kind and class of insurance.
  4. The insurance must not be procured for the purpose of securing the advantage of a lower premium rate than would be accepted by authorized insurers.
  5. Within 30 days of the effective date, the surplus line broker shall file a written report (Form ID­12) http://www.aldoi.org/iView/page.cfm?view=52 validating coverage was written through the unauthorized market.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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