NC Surplus Lines Insurance
NC Surplus lines insurance is any insurance in North Carolina that covers resident risks (located or to be performed in North Carolina) that may be placed with an eligible surplus lines insurer. Surplus lines insurance does not include reinsurance; commercial aircraft, wet marine and transportation, life, accident, or health insurance; or annuities.
Memorandum on North Carolina Surplus Lines Licensing
License Required for Placement of Surplus Lines Insurance – N.C.G.S. ยง58-21-65(a).
For insureds, whose home state is this State, no agent or broker licensed by the Commissioner shall directly procure any contract of surplus lines insurance with any non-admitted insurer, unless he possesses a current surplus lines insurance license issued by the Commissioner.
View a downloadable version of the Memorandum on North Carolina Surplus Lines Licensing
Memorandum FAQ
How many employees of each entity (MGA/Wholesale Agent/Retail Agent) that procures surplus lines policies in North Carolina must have a North Carolina surplus lines license?
All employees involved in the direct procurement of a surplus lines policy placed on an
insured whose home state is North Carolina, must have an individual North Carolina surplus lines license.
What if an agency has a North Carolina Business Entity surplus lines license?
Only those individuals listed as licensees under the business entity surplus lines license are considered duly licensed to place surplus lines business. To be listed as a licensee under a business entity surplus lines license you must be an individual North Carolina surplus lines licensee.
Are CSRs or other employees who handle endorsement transactions, accounting functions and other clerical transactions on surplus lines policies required to be individual surplus lines licensees?
If these individuals are not involved in the actual binding and placement of the surplus lines policy, then they are not required to be individual surplus lines licensees.
What are the penalties for individuals placing surplus lines business without being properly licensed in North Carolina?
Penalties for violation of the provisions of the Surplus Lines Act may include, but are not limited to, suspension, revocation or refusal to renew a license, and payment of penalties and restitution.
How will the NCSLA in conjunction with the NCDOI confirm that the producer of a policy has the proper license to procure that policy with a non-admitted insurer?
One of the duties of the NC Surplus Lines Stamping Office is to facilitate compliance. To do so we have developed a Compliance Review Program which will help ensure fairness and conformity with the NC Surplus Lines law by monitoring and evaluating data submissions. Reviews will include basic verification of information such as the policy premiums, tax, fee calculations, production ledgers, statutorily required disclosures and individual producer information. Some of this information may also be verified with the issuing non-admitted carrier.