FAQ - Surplus Line Insurer

• What is a nonadmitted insurer?
• Which nonadmitted insurers are eligible to accept placements from California surplus line brokers?
• Does California publish a list of eligible surplus line insurers? If so, how does one obtain a copy of the list?
• What is the LASLI List?
• What is an ineligible company?
• What is an objected company?
• Are objection orders available to the public?
• What is a Gap Insurer?

Q.  What is a nonadmitted insurer?

A. A nonadmitted insurer is an insurance company or syndicate licensed in at least one state or country but not in California. Also known as a "surplus line" insurer. Nonadmitted insurers domiciled in the United States are called "foreign" insurers and those domiciled in another country are "alien" insurers.

Q.  Which nonadmitted insurers are eligible to accept placements from California surplus line brokers?

A. An eligible nonadmitted insurer is a nonadmitted insurer that meets eligibility requirements for placements with California home state insureds by surplus line brokers. As provided in CIC section 1765.1, a foreign insurer must have $45 million in capital and surplus and be licensed for the line of business in its state of domicile to be eligible and an alien insurer must be listed on the Quarterly Listing of Alien Insurers maintained by the NAIC International Insurers Department ("IID"). Placements for California home state insureds may not be made with an eligible insurer until documentation of eligibility as specified in CIC section 1765.1(c) is filed with the DOI by the insurer or a surplus line broker on behalf of the insurer.

Q.  Does California publish a list of eligible surplus line insurers? If so, how does one obtain a copy of the list?

A. The DOI does not publish a list of insurers that meet the above eligibility requirements. The NAIC IID publishes the Quarterly Listing of Alien Insurers, which determines the eligibility of alien nonadmitted insurers. Information regarding insurer eligibility may be available by calling the SLA's office at (415) 434-4900 or the DOI at (800) 927-HELP.

While the DOI does not publish a list of eligible nonadmitted insurers, it does maintain and publish a List of Approved Surplus Line Insurers ("LASLI"). That list is available from the DOI and SLA websites.

Q.  What is the LASLI List?

A. LASLI stands for "List of Approved Surplus Line Insurers" which is a list of nonadmitted insurers approved by the Commissioner for placements of California surplus line risks. Approved insurers have been reviewed by the DOI and are eligible for placements through surplus line brokers. Eligible nonadmitted insurers are not required to seek inclusion on LASLI. The requirements for inclusion on LASLI are substantially the same as those for the former LESLI list and can be found at CIC section 1765.2.

Q.  What is an ineligible company?

A. An ineligible company is a nonadmitted insurer that has does not qualify as an eligible nonadmitted insurer under the requirements of CIC section 1765.1.

Q.  What is an objected company?

A. An objected company is a nonadmitted insurer found by the Insurance Commissioner to be unacceptable for use.

Q.  Are objection orders available to the public?

A. Objection orders issued after June 12, 1992 are available at the SLA's office; orders issued prior to that date may be obtained from Dale Wiseman, Supervising Investigator at the DOI.

Q.  What is a Gap Insurer?

A. A "gap insurer" is a nonadmitted insurer that is not an eligible insurer, but can be used for placements of California surplus line risks on a limited basis if certain conditions are met. Refer to CIC Section 1765.1(h) for Gap placement conditions and requirements.