NCDOI Surplus Lines Licensable vs. Non-Licensable Activities
The North Carolina Department of Insurance (NCDOI) distinguishes between licensable and non-licensable (clerical) activities for surplus lines, as an individual must hold a specific surplus lines license to perform licensable acts.
For further guidance, individuals can refer to the official NCDOI website or consult the specific guidance document on Surplus Lines Licensable vs. Non-Licensable Activities.
All questions on Surplus Lines Licensable vs Non-Licensable activities should be directed to the North Carolina Department of Insurance – Agent Services Division. [email protected]
Licensable Surplus Lines Activities
Activities that require an individual to hold an NCDOI surplus lines license (in addition to property and casualty lines of authority) include, but are not limited to, discussing policy terms or coverage rates with an insured, prospective insured, or retail agent, as well as negotiating coverage terms or pricing with a surplus lines carrier. Binding coverage or requesting it directly from a surplus lines carrier also requires a license, as does selling, soliciting, or negotiating surplus lines insurance
Non-Licensable (Clerical) Activities
Certain clerical or administrative acts do not require a surplus lines license, provided the unlicensed person does not participate in any licensable discussions. These include disseminating standard rate lists without discussion, being copied on communications without participating, and handling unaltered insurance documents like ID cards or certificates of insurance. Receiving and recording requests for policy changes for a licensed individual, general office tasks like opening mail and filing, and preparing documents for a licensed producer are also considered non-licensable.