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Surplus Lines

Surplus Lines Brokers

Premium Reporting




Related Bulletins and Orders


  Frequently Asked Questions

  Alaska Policyholder Notice

For Bulletin 08-06, the Alaska Policyholder Notice of nonrenewal and premium increase, is that also required for Alien insurers?

Yes, all Alaska surplus lines policies must have this notice.

  Diligent Search

  1. Do you have to do the Due Diligence search if the risk is listed on the surplus lines placement list?
    Canvassing admitted companies for a declination is not required when the risk is listed on the placement list.
  2. If it's on the placement list, do you still have to have a form or documentation showing the placement list type and number?
    There must be documentation in the insured's file the placement list was evaluated and how the risk is identified on the placement list.
  3. On the placement list - define 'Monoline Liability' as the line of coverage. For example EPL - can this not be combined with Crime/ERISA/Fid?
    When the Placement List identifies a risk as 'monoline liability' then that is the only line that is considered acceptable in which the Placement List can be used for the diligent search. It cannot be combined with other lines of insurance. For combination policies, a search of all admitted companies may be required.
  4. When the placement list specifies a line of coverage, such as Fire, code 1, but the quoted coverage is a package, which would be code 5.2 Comml Multi Peril w/Liab, that is unacceptable, correct?
    That is correct. If the Placement List does not have a multiple coverage for the one needed by the insured, the Placement List cannot be used as the diligent search.
  5. Are we still using the codes list?
    The policy type codes list is still required to be used in both the diligent search documentation as well as reporting on the quarterly report.
  6. On the Affidavit of Due Diligence section 4C - - must a producer include emails from the carriers that have declined to cover the risk?
    No, emails are just one form of documentation that would meet the requirements for 4C. A list created of all companies contacted with the necessary information regarding the contact, such as insurer name, contact name, date, location, reason for decline, may be provided.
  7. Do you require first and last name for the Underwriter on the Affidavit of Due Diligence or other diligent search documentation?
    The full contact name is required.
  8. Are we required to obtain declinations for each individual policy or can declinations for one LOB be sufficient regardless of insured?
    Regulation 3 AAC 25.035(b): A declination from an insurer for a class of insurance may be cited for other insureds for no more than 180 days.
  9. Do you have to do a diligent search every year?
    Every year a diligent search must be completed prior to renewal or if a multi-year policy. Admitted market changes could open an avenue for better protection for the insured.
  10. If the admitted market came back in to play in the middle of a multi-year policy would we have to cancel and reissue through the admitted carrier?
    There is no requirement to cancel and re-issue through the admitted carrier but is a suggestion as an admitted carrier policy would provide greater protections for the insured. But all ramifications such as penalties to the insured should be taken into consideration when evaluating whether to cancel and re-issue with an admitted carrier.
  11. Is wet marine exempt from due diligence search? How is wet marine defined?
    If a policy meets the definition of wet marine & transportation in AS 21.34.900(15) then a diligent search is not required.
  Eligible Surplus Lines Insurer

Could you elaborate on the use of Alien insurers? Is it comparable to utilizing a Surplus Lines insurer?

Foreign surplus lines insurers apply to Alaska be an eligible surplus lines insurer and if approved are listed on the White List that Alaska publishes twice a year. Alien surplus lines insurers apply to the NAIC to be an eligible surplus lines country wide. If approved they are listed in the Quarterly Listing of Alien Insurers the NAIC publishes four times a year. All foreign and alien approved surplus lines insurers on both lists are eligible surplus lines insurers in Alaska.

  Evidence of Insurance

  1. If the policy is available within 30 days, but you already sent a binder - do you also need to send the policy within 30 days?
    No, as long as a binder is sent within 30 days of binding, the policy does not have to be sent within 30 days of binding.
  2. What all documents must have the AS 21.34.100(e) disclosure language?
    All evidence of insurance, by whatever name given, must have the disclosure language. This includes a policy, binder, cover note, confirmation of coverage, endorsement, and certificates of liability. This applies to all new and renewal business.
  3. Are there still font requirements for the disclosure language?
    Yes, the disclosure must be at least 10 point type.
  4. The AS 21.34.100(e) & (f) disclosure wording can be typed on the certificate, correct?
    Yes, the disclosure can be typed on all evidence of insurance, including certificates.
  5. Does the premium need to be listed on the certificate of liability also?
    No, there is no requirement for the premium to be on the certificate of liability unless that is the only document used as proof of coverage to the insured. Then it would be considered the first evidence of insurance delivered and subject to all the required material facts as listed in AS 21.34.100(a).
  Home State Determination

If a company is domiciled in Alaska but their main office is in another state and they have exposures in both states, then which should be considered the home state?

If the main office is not in Alaska and they handle all the high level decisions in that office, then the other state is considered the home state for the policy when there is exposure in both states. Each policy must be evaluated separately as to where the risk is before the home state can be determined.

  Notification AS 21.34.110

Does the AS 21.34.110 notification have to be delivered annually?

It must be delivered to the insured prior to binding as the premium charged is not due and payable until delivered. On a multi-year policy, it does not have to be delivered annually.

  Quarterly Report

On the quarterly report, do we only have to provide the state of the location or do we need to provide the entire address of the risk?

A full address is not required in the location of risk column, only the states in which there is risk on the policy are required to be listed.

  Wet Marine & Transportation

  1. In the Alaska Statute, aren't there two defintions of Wet Marine? Which one should we be utilizing when defining Wet Marine?
    AS 21.34.900(15) is the definition to use when determining if the policy meets wet marine and transportation and is not considered a surplus lines policy.
  2. What is the tax rate for wet marine & transportation policies?
    The tax rate is .75% on gross premium written. The 1% filing fee assessed on a surplus lines policy is not applicable for a wet marine & transportation policy.
  3. Is wet marine exempt from due diligence search? How is wet marine defined?
    If a policy meets the definition of wet marine & transportation in AS 21.34.900(15) then a diligent search is not required.
  Exempt from Tax and Filing Fees

Taxes and filing fees do not apply to insurance of risks of state government or its political subdivisions, to an agency of state government or its political subdivisions, or to insurance of aircraft primarily engaged in interstate or foreign commerce. All other requirements for a surplus lines placement are still required: notifications, diligent search, disclosures, etc.

Surplus Lines Insurers

Alien Surplus Lines Insurers

As of March 1, 2016, all alien surplus lines insurers in the Alaska Company Search that are also on the NAIC Quarterly Listing as eligible surplus lines insurers will reflect a status of Inactive with a status reason of NAIC IID Listed. Please use the NAIC Quarterly Listing to review the eligible status of an alien surplus lines insurer. 


Eligibility Continuation

Other Forms

If questions, contact Jeffery Bethel at 907-269-7919