Surplus Lines Insurers

Surplus Lines Insurers

Chapter 58, Article 21 of the North Carolina General Statutes (Surplus Lines Act) governs the eligibility requirements of surplus lines insurers operating in North Carolina.  Eligible surplus lines insurers fall into one of the following categories:

  1. Surplus lines insurers that are U.S. domiciled nonadmitted insurers that meet the eligibility requirements of N.C.G.S. 58-21-20 and are included on the Department’s listing of eligible surplus lines insurers. 
  2. Surplus lines insurers that are non-U.S. domiciled nonadmitted insurers that are listed on the Quarterly Listing of Alien Insurers maintained by the NAIC’s International Insurers Department (“IID”).

A person insured by a surplus lines insurer does not have the protection of the North Carolina Insurance Guaranty Association Act to the extent of any right or recovery for the obligation of an insolvent unlicensed insurer.

Filing an Application for Inclusion on the Department's Listing of Eligible Surplus Lines Insurers

All U.S. domiciled nonadmitted insurers seeking to be an eligible surplus lines insurer in North Carolina must submit the following:

  • A cover letter, which includes the insurer's name, contact information of the person submitting the documents, and a listing of the documents filed.  Contact information must include name, mailing address, e-mail address, and phone number.
  • A properly executed annual statement as filed with the insurance department of its state of domicile and certified to that effect showing a minimum of $15 million in capital and surplus. A quarterly statement should also be included in applications submitted more than one month and fifteen days after the end of the most recent quarter. If the most recent annual statement and the most recent quarterly statement have been filed with the NAIC, then these items are not required to be submitted.
  • A copy of its current Certificate of Authority from the insurance department of its domicile state.
  • A plan of operations which includes the following:
    • A brief description of the products to be offered in North Carolina.
    • 3- to 5- year written premium volume projections by line(s) of business for North Carolina.
    • A brief description of its reinsurance program.
  • A nonrefundable application fee. (Schedule of Fees)
  • An executed Uniform Consent to Service of Process.
  • Any other information reasonably required by the Department.

Once the above information is received and found to be acceptable, a formal registration letter will be provided to the insurer.

Renewal Application

Every nonadmitted insurer that is registered and included on the Department's listing of eligible surplus lines insurers must submit a renewal application and pay a nonrefundable renewal fee by January 1 each year in order to retain registration.

Department's Listing of Eligible Surplus Lines Insurers

NAIC IID Quarterly Listing of Alien Insurers

Questions concerning surplus lines insurers or the application process can be directed to:

Scott Wicker
Company Admissions Manager
919-807-6142
scott.wicker@ncdoi.gov