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FAQ - Surplus Line InsurerQ. What is a surplus line insurer? A. A surplus line insurer is an insurance company or syndicate licensed in at least one state or country but not in California. Also known as a "nonadmitted" insurer. Surplus line insurers domiciled in the United States are called "foreign" insurers and those domiciled in another country are "alien" insurers. A. A surplus line insurer must fully comply with the requirements of CIC Section 1765.1. Included among the minimum standards are the following: (1) $15 million in capital and surplus, (2) have actively transacted insurance for the 3 years immediately preceding the filing, (3) maintain $5.4 million in a U.S. trust account (for alien insurers only), (4) be licensed to transact insurance in its domiciliary state/country, and (5) have a California licensed surplus line broker who will assume the regulatory filing responsibility for the insurer Q. What are the regulatory filing requirements for surplus line insurers in California? A. Refer to CIC section 1765.1 and California Code of Regulations ("CCR"), title 10, section 2174 for the regulatory filing requirements for surplus line insurers. In addition, the DOI has provided a guide outlining the ongoing regulatory filing requirements for eligible surplus line insurers, as well as for those insurers who are seeking surplus line eligibility in California. This guide is attached to SLA Bulletin #917 and included in this Manual. A. The DOI issues an updated List of Eligible Surplus Line Insurers (LESLI) list at least twice a year - June and December. Copies of the LESLI List are available by calling the SLA's office at (415) 434-4900 or the DOI at (800) 927-HELP. The SLA notifies its members by bulletin of changes to the list during other times of the year. A. LESLI stands for "List of Eligible Surplus Line Insurers" which is a list of nonadmitted insurers approved by the Commissioner for placements of California surplus line risks. Q. What is an unlisted company? A. An unlisted company is a nonadmitted insurer that has not been approved by the Commissioner for placement of California surplus line risks and is not on the LESLI List. Q. What is an objected company? A. An objected company is a nonadmitted insurer found by the Insurance Commissioner to be unacceptable for use and not appearing on the LESLI List. 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. A. A Gap Insurer is a nonadmitted insurer that is not on the LESLI List, 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(k) for Gap placement conditions and requirements.
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