NCDOI Due Diligent Requirements
G.S. 58-21-15 governs diligent search requirements for the placement of surplus lines insurance in North Carolina. The statute is broad in scope and does not require a specified number of declinations from admitted insurers before insurance is placed with an authorized surplus lines insurer.
NCDOI has maintained the position that the producing agent is responsible for conducting a diligent search for the placement of insurance with admitted insurers in North Carolina. In the event that insurance cannot be placed with an admitted insurer in North Carolina, it is the responsibility of the surplus lines licensee to confirm that the diligent search was conducted by the producing agent.
North Carolina insurance laws, including the Surplus Lines Act, are silent as to the type of documentation that the surplus lines licensee may use as confirmation of the diligent search by the producing agent. This decision regarding acceptable documentation confirming the diligent search can be determined by the surplus lines licensee.
View a downloadable version of the NCDOI Due Diligent Requirements.
View a downloadable version of G.S. 58-21-15.