What must be filed with the insurance department when a surplus lines policy is placed?

When a surplus lines policy is placed, it is necessary to file a Surplus Lines Declaration or Affidavit with the insurance department. This document serves multiple purposes: it establishes that the surplus lines insurer is authorized to operate in the state, it provides details about the terms and conditions of the policy, and it confirms compliance with regulatory requirements regarding surplus lines insurance.

The Surplus Lines Declaration or Affidavit typically includes information about the insured, the type of coverage being provided, the insurance company involved, and any relevant premium details. Filing this document is essential to ensure that the transaction is transparent, that any applicable taxes or fees are assessed, and that the underwriter is in compliance with state regulations governing surplus lines.

Other documents, such as an insurance policy summary or a claim form, do not fulfill the legal requirements set by many states for surplus lines transactions. A certificate of coverage may provide evidence of coverage but does not serve the same formal filing purpose as the Surplus Lines Declaration or Affidavit.