1、The SurpluS line ASSociATion of cAliforniADont Worry Non-admitted Does Not Mean Non-regulatedCAThe SurpluS line ASSociATion of cAliforniAThe PolicySurplus line insurance policies are sold by “non-admitted” carriers through licensed “surplus line brokers.” Other insurance agents and brokers must go t
2、o a licensed surplus line brokerage to access non-admitted carriers. When such companies are on Californias LESLI, (List of Eligible Surplus Line Insurers) they are regulated.The State Of CaliforniaSince 1937, The Surplus Line Association of California, a nonprofit statutory advisory organiza-tion,
3、has monitored surplus lines and advised the California Department of Insurance (CDI) regard-ing non-admitted carriers and surplus line brokers to protect California companies and citizens.Non-Admitted Or Surplus LineNon-admitted does not mean non-regulated. Non-admitted carriers on the LESLI have be
4、en reviewed and approved by the California Department of Insurance (CDI) for surplus line insurance in California. Non-admitted carriers on the LESLI are actually “admitted” insurance carriers in their state or country of domi-cile other than California. Surplus lines have been written by non-admitt
5、ed carriers since the 1800s, and generally are used when a risk is unusual, unusually large or when coverage is not available from carriers licensed in California.Non-admitted does not mean non-regulated.1Solvency RegulationsNon-admitted insurers on the LESLI must demon-strate to the State of Califo
6、rnia their financial stabil-ity, reputation and integrity; maintain a minimum of $15 million in capital and surplus at all times; have 3 years seasoning (or qualify for an exception); have a valid license to transact insurance in their domicile; file financial information with the Department of Insu
7、rance and adhere to specific capitalization, investment and solvency standards established under the California Insurance Code.California LawThe California Department of Insurance (CDI) is the official regulatory agency for insurance in California, including the surplus line industry. The Surplus Li
8、ne Association of California is officially a nonprofit advisory organization, which performs statutory duties for the CDI. The Associations rec-ommendations are considered and incorporated into the legally binding decisions of the CDI when appropriate. LESLICalifornias LESLI was first issued by the
9、California Department of Insurance (CDI) in 1995. Licensed surplus line brokers are forbidden by law from using non-admitted insurers that are not on the LESLI (with narrow exceptions). Make sure your carrier is on the LESLI!non-AdmiTTed meAnS Insurance carriers not licensed by the State of Californ
10、ia (also called “surplus line carriers”) Carriers on the LESLI (are actually “admitted” insurance carriers, licensed in a state or country of domicile other than California) Carriers that must meet strict surplus line laws and regulations in order to provide insurance to California businesses and re
11、sidents Carriers regulated by their state or country of domicile, including stringent requirements regarding reputation and integrity, capitalization and solvency, licensing and business practicesThe Surplus Line Association of California is offi-cially a nonprofit advisory orga-nization, which perf
12、orms statutory duties for the CDI.2 3WhAT iS The SurpluS line ASSociATion of cAliforniA? A nonprofit 501(c)(6) organization, the Association has been working with the California Department of Insurance (CDI), since 1937, to maintain a respon-sive and lawful California surplus line market The Associa
13、tion performs statutory duties within the California insurance industry under the direc-tion and supervision of the CDIWhAT iS The leSli? The “List of Eligible Surplus Line Insurers” Established and regulated by the CDI Monitored by The Surplus Line Association of CaliforniaWho regulATeS SurpluS lin
14、eS TrAnSAcTionS in cAliforniA? CDI legally regulates transactions SLA monitors and advises Brokers and agents have strict compliance responsibilities to promote and protect consumer awareness4SummAryThe Surplus Line Association is charged with and committed to the protection of California consumers
15、of surplus lines of insurance. It is the only organization with an advisory and statutory relationship with the California Department of Insurance (CDI) regarding such transactions. A nonprofit organization, the Association has been working with the CDI, since 1937, to maintain a responsive and lawf
16、ul California surplus line market. This document is an introduction to the market, its participants, regula-tions and the role of the Association as it works to protect you.The SurpluS line ASSociATion of cAliforniA50 California Street, 18th FloorSan Francisco, CA 94111Telephone 415.434.4900Toll Free 800.334.0491Fax 415.434.3716www.slacal.org
