Frequently Asked Questions

Is it a requirement that a North Carolina surplus lines licensee register with and pay the annual dues to the North Carolina Surplus Lines Association (“NCSLA”)?+

Yes.

North Carolina General Statute §58-21-40(d) mandates that all licensees shall maintain membership in the NCSLA as a condition of the continued licensure. This applies even if you do no actively write surplus lines business in North Carolina.

Where and how do I register for NCSLA membership and pay the annual dues?+

The membership registration module is available on our website at the following link.

Membership Registration

Membership dues may be paid online with a credit card or may be mailed to the NCSLA at:

North Carolina Surplus Lines Association
8412 Falls of Neuse, Suite 206
Raleigh, NC 27615

How long is the NCSLA membership valid?+

The NCSLA membership is valid for one year (August 1st – July 31st).

When are payments due for the next membership year?+

Annual membership dues must be paid prior to August 1st of the upcoming membership year.

The NCSLA will notify the licensee of the annual dues requirement by email. The email will be sent to the address on file provided to the NCDOI.

Can I register an agency or corporation for the NCSLA membership?+

No. Business Entity surplus lines licensees (agencies and corporations) are not eligible for membership. The NCSLA only accepts registration for individual surplus lines licensees.

How does a surplus lines licensee receive a login and password for the North Carolina Surplus Lines Information Portal (“SLIP”)?+

Once the North Carolina surplus lines licensee has paid their annual membership dues to the NCSLA, the licensee should view the SLIP registration tutorial on the NCSLA website at the following link.

SLIP Tutorials

After viewing the registration tutorial, the licensee should register at the SLIP login screen to receive their credentials. The credentials will be issued by SLIP and emailed to the licensee after the registration approval process.

SLIP Login

Should I select “Individual” or “Corporation” when registering for SLIP?+

If your company has a North Carolina Business Entity Surplus Lines license, then you should register for SLIP as a corporation. Otherwise, you will need to register as an individual.

A corporate license in North Carolina is not a “Business Entity Surplus Lines" license.

Is it mandatory to register for SLIP?+

SLIP is only mandatory for those filing surplus lines taxes on non-admitted policies.  If you have “0” policies in North Carolina, then there is no need to register for SLIP.

What filings can be entered through SLIP?+

New and renewal filings on surplus lines policies with an inception date of 01/01/2017 and later, can be entered through SLIP. Endorsements can also be entered in SLIP, but only for those policies with an inception date of 01/01/2017 and later.

The existing NCDOI surplus lines system will not accept any filings with an inception date of 01/01/2017 or later.

When should policy filings be entered in SLIP?+

Filings are due within 30 days of binding. (North Carolina General Statute §58-21-35)

Policies should be filed when written and not on a quarterly basis.

Is the Form F required for filings entered in SLIP?+

The North Carolina Form F has been replaced by an online “Compliance Acknowledgement” which verifies that the surplus lines licensee has complied with North Carolina General Statute §58-21 for the placement of surplus lines business in North Carolina.

While licensees will no longer be required to obtain a signed Form F document from the insured and the broker, a copy of the compliance acknowledgment should be maintained in each insured’s file. (Either a hard copy or electronically stored).

What forms are required for filings entered in SLIP?+

No forms are required to be downloaded with SLIP filings.

What is the North Carolina surplus lines tax and stamping fee?+

The North Carolina surplus lines tax is five percent (5%) on all transactions.

The North Carolina surplus lines stamping fee is four-tenths of one percent (0.4%) on all transactions with a policy inception date of 01/01/2017 or later. This fee will apply to all premiums, company (insurer) imposed fees, and all endorsements entered in SLIP.


Example:

Premium:$1000.00
NC surplus lines tax (1000 x 0.5)$50.00
NC stamping fee (1000 x .004)$4.00


Example:

Premium:$1000.00
Company Fee:$200.00
NC surplus lines tax (1200 x 0.5)$60.00
NC stamping fee (1200 x .004)$4.80
Are company fees taxable?+

Yes, company fees are taxable. Company fees are those charged by the insurer.

Any fees charged by the broker are not subject to the North Carolina surplus lines tax or the North Carolina stamping fee.

Does SLIP support XML batch submission?+

Yes. SLIP is configured to allow for multiple policy submissions through a batch format.

The following link will direct you to our batch upload guides.

Batch Upload Guides

We also have a batch filing video that can be viewed on our SLIP tutorials page.

SLIP Tutorials

How will the North Carolina Surplus Lines Stamping Office monitor SLIP filings?+

The North Carolina Surplus Lines Stamping Office will perform compliance audits. The stamping office will request that certain documents be sent to verify that filings are being accurately entered in SLIP.

The stamping office will also run verification reports to confirm that the surplus lines policies reported as written in North Carolina by each surplus lines insurer, match the filings entered through SLIP that are reported by each surplus lines licensee.

What are the “Due Diligence” requirements for placing a surplus lines policy in North Carolina?+

North Carolina General Statute 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 specific number of declinations from the admitted insurers before insurance is placed with an authorized surplus lines insurer.

The 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.

What written notification must appear on every surplus lines policy?+

North Carolina General Statute §58-21-45(f) requires that every surplus lines policy placed by a surplus lines licensee bear the name of the licensee and the following legend in 12-point type and in contrasting color or in 12-point type and underlined and in bold print.

“The insurance company with which this coverage has been placed is not licensed by the State of North Carolina and is not subject to its supervision. In the event of the insolvency of the insurance company, losses under this policy will not be paid by any State insurance guaranty or solvency fund."

What are the record keeping requirements for surplus lines licensees?+

Please refer to North Carolina General Statute §58-21-75, Records of surplus lines licensee.

Records can be kept either electronically or a hard copy and must be maintained for 5 years.

Does North Carolina require quarterly or annual filing reports?+

North Carolina does not require any quarterly or annual filing reports.

No reports are required on “0” premiums.

How are purchasing groups and independent procurement filed?+

Purchasing groups and independent procurement filings are to be filed directly with the NCDOI as they have historically been filed.

Are “Courtesy Filings” allowed in North Carolina?+

No.

North Carolina surplus lines licensees are prohibited from doing “Courtesy Filings" for any agent who does not have a North Carolina surplus lines license and is directly involved in the procurement of a surplus lines policy in North Carolina. 

Any person who is directly involved with procuring surplus lines policies in North Carolina must have a North Carolina surplus lines license. North Carolina General Statute §58-21-65(a)

How are tax-exempt filings be handled?+

Tax-exempt filings are to be entered in SLIP but will not receive an approval until the NCDOI has been notified of such filing and has approved the tax-exempt status for such risk.

  • File the policy in SLIP with a nontaxable tax status. SLIP will mark this as a Transaction in Question.
  • The NCSLA will ask for supporting documentation to present to the NCDOI for a decision on the tax status.
  • The NCDOI will review each policy on a case by case basis for tax-exempt approval.
Are tax-exempt filings subject to the surplus lines stamping fee?+

Yes. All tax-exempt filings are subject to the surplus lines stamping fee, except for North Carolina state owned property written through the IIANC.

How and when to pay surplus lines taxes and stamping fees? (SLIP Only)+

On the first business day following the end of each calendar quarter (March 31, June 30, September 30, December 31), two separate invoices, one for the surplus lines tax and one for the stamping fee, will be available in SLIP for review and payment. Filers will also receive a billing report in SLIP that contains the transactions included in the tax and stamping fee invoices.

  • Taxes and stamping fees are due within 30 days of the invoice date.
  • Separate payments must be issued for the surplus lines tax and stamping fee invoices.
  • Invoices must be paid in full to be compliant with the NCDOI.
  • No adjustments should be made to the invoice.
  • Transactions entered in SLIP after the quarter has closed will be reflected on the next invoice. 

Payment for the surplus lines tax must be paid by check only at this time and mailed directly to the NCDOI at the following address. No FedEx or UPS. Must be mailed – No exceptions. 

  • Surplus Lines Tax – Check Payments:
    Please make the check for surplus lines taxes payable to the North Carolina State DOI.

    North Carolina State DOI

    P.O. Box 744167
    Atlanta, GA  30374-4167

Payment for the surplus lines stamping fee may be paid to the North Carolina Surplus Lines Association by ACH or by check mailed directly to the NCSLA stamping office.

  • Stamping Fee – ACH Payments:

    For ACH payment the SLIP administrator will need to enter their bank information in SLIP on the payment screen for surplus lines stamping fees. This information will then be transmitted to PNC bank who will then debit the stamping fees from the agency’s account. If you need the NCSLA’s PNC customer ID # to allow for this debit transaction, please send a request to contact@ncsla.com.
  • Stamping Fee – Check Payments:
    Please make the check for stamping fees payable to the North Carolina Surplus Lines Association.

    North Carolina Surplus Lines Association
    8412 Falls of Neuse, Suite 206
    Raleigh, NC  27615