7 Tips for Dealing With a Lapsed License

The term “lapsed” refers to an insurance license that the holder does not renew at the time of its expiration date, but which state regulators have yet to administratively terminate.

In Good Standing: Certificate of Authority Statuses

Insurance businesses operating in a state other than their domicile jurisdiction need to register with the Secretary of State as a foreign corporation for a Certificate of Authority. Failing to complete these tasks in a timely manner can impact your ability to do business in that state.

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.