Georgia Joins Growing List Of States That Allow For Domestic Surplus Lines Insurers

Author:Ms Gail Jankowski
Profession:Carlton Fields
 
FREE EXCERPT

Earlier this month, Georgia enacted SB 381, which provides that a non-admitted insurer domiciled in Georgia is deemed a domestic surplus lines insurer, if all qualifications are met, and can sell surplus line products in Georgia. Georgia joins a growing list of states, including Arizona, Arkansas, Delaware, Illinois, Louisiana, Missouri, North Dakota, New Hampshire, New Jersey, Oklahoma, Texas, and Wisconsin that have passed similar legislation. Among the criteria are (1) that the insurer possesses a policyholder surplus of at least $15 million, (2) that the insurer is an eligible surplus lines insurer in at least one jurisdiction other than Georgia, (3) that the insurer's board of directors has passed a resolution seeking to be a domestic surplus lines insurer in Georgia, and (4) that the insurance commissioner has issued a certificate of authority or other written approval of the same. The bill also states that all financial and solvency requirements imposed on Georgia's domestic admitted insurers shall apply to domestic surplus lines insurers unless otherwise specifically exempted. GA SB 381 (signed 5/8/2018).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To continue reading

FREE SIGN UP