Bulletins & News

Introduction

The Surplus Line Association of California ("SLA") was created in 1937 as a non-profit organization to inform its members of proper surplus line procedures, to cooperate with the California Department of Insurance ("DOI") in providing effective regulation, and to act as a liaison between the DOI and the surplus line brokerage community.

Under California law, surplus line insurance may be placed with eligible surplus line insurers through a licensed surplus line broker only in those instances where the insurance for a risk is not available from admitted insurers qualified to write and actually writing such insurance. As a condition of holding a license, California licensed surplus line brokers are deemed to be members of the SLA [California Insurance Code section 1780.52(b)].

The SLA membership is comprised of over 400 surplus line brokers and brokerages that are licensed by the State of California. A surplus line license allows a broker to negotiate with insurers not licensed to transact insurance in California ("nonadmitted" or "surplus line" insurers). These nonadmitted insurers must be licensed in their home jurisdiction, either in a U.S. state or another country, and must meet the financial and operational requirements under California Insurance Code section 1765.1 before insuring surplus line risks in this state.

The SLA has prepared this Manual as a compendium of the critical documents that regulate the California surplus lines market and the operations of the SLA. The material in this Manual provides Members of the SLA ready access to key information, most of the California surplus line laws and regulations, checklists, forms, filing procedures, and other information concerning surplus line placements and access to the California surplus line market.

This Manual is advisory only and is not intended to be all-inclusive or original. It does not supersede the actual language of the California Insurance Laws or Regulations. The SLA makes no warranty or representation as to the accuracy or current effectiveness of the laws and regulations reprinted in this Manual. Furthermore, the guidance is not intended to prescribe mandatory regulatory procedures. Rather, it is intended to serve as a reference for proper placement of surplus line business and to highlight certain California laws and regulations that relate to transacting surplus line business in this state.

This Manual will be revised from time to time to incorporate new developments, information, or to provide additional guidance.

The Surplus Line Association of California is located at:

50 California Street, 18th Floor
San Francisco, CA 94111
Phone: (415) 434-4900
Fax: (415) 434-3716
Web site: www.slacal.org