DEC Pages & Surplus Lines Filings

As you prepare to file a surplus lines policy with state regulators—and, depending on the state, make your premium tax payment—it’s likely you’ll use the declaration (or DEC) page as a convenient source for policy information. Let’s take a closer look at the definition & information required to file surplus lines policies in four key states

Who’s Who in Surplus Lines?

A single surplus lines policy may pass through a lot of hands during its existence. Each individual or entity involved in the process has a specific role to play, making up the surplus lines ecosystem, contributing to the integrity and growth of the insurance industry as a whole.

Certificates of Authority & the Secretary of State

If you fail to establish approval for your entity to transact business in a specific state, your business legally doesn’t exist. If you’re not registered at the time of an event that led to a legal suit, you may just be out of luck.

Major Lines of Authority

A key decision to make before applying for a new license is what lines of authority (LOA) the license holder needs. The LOA always need to reflect the full range of insurance products that the licensee intends to sell in a particular jurisdiction.

Surplus Lines & the Home State Rule

One of the things that makes the non-admitted market different from the standard market is the need to pay premium taxes and other fees on a policy-by-policy basis. When the risks covered by a policy are located in more than one state, the Home State Rule comes into play.

Surplus Lines State Stamps: The Essentials

Surplus lines compliance requires careful attention to detail and adhering to a sometimes bewildering variety of state requirements. Keeping the essentials in mind and understanding the why behind these requirements can make compliance easier.

Adjusters: They’re Not All the Same

Other than the agents who sell them their policy, the insurance professionals who have the most contact with policy holders are adjusters. If you don’t work in claims, however, you may not realize that there is more than one kind of insurance adjuster.