States listed on the Domestic Surplus Lines Insurers (DSLI) chart have enacted statutes or regulations that allow for DSLI carriers in their state. States that have not enacted statutes or regulations allowing DSLI carriers are not included on the chart.

Last update: 11/6/2023
Updates to the information will be noted with a “*” next to the state name and edits will be italicized and bolded.

^IA – Additional Requirements
If the applicant currently holds a Certificate of Authority in Iowa, then the applicant would submit the following documentation to the Division:
a.   A balance sheet for the most recent calendar quarter that demonstrates the applicant possesses the greater of minimum capital and surplus of at least $15 million or three hundred percent of authorized-control-level risk-based capital pursuant to Iowa Code chapter 521E.
b.   The applicant is an eligible surplus lines insurer in at least one jurisdiction other than Iowa.
c.   Duly executed resolution of the applicant’s board of directors to be designated as an Iowa domestic surplus lines insurer and stating that the insurer shall only write surplus lines business.  The resolution shall not be amended without approval of the commissioner.
d.   A plan of operations regarding the applicant’s specialty lines program and financial projections for at least three years.
e.   Revised Articles of Incorporation and Bylaws.
^NC – Initial Application
These specific items include the following:
• A nonrefundable application fee of $500.00. 
• Biographical information, including names, addresses, and official positions, on each promoter, incorporator, director, trustee, and the proposed management  personnel, including a completed NAIC biographical affidavit form. 
• Chart(s) showing the internal organizational structure of the applicant’s management and administrative staff. 
• A disclosure identifying all affiliates, including a description of any management, service, or cost-sharing arrangement between an affiliate and the applicant. Include corporate organizational charts, which clearly identify the relationships between the applicant and any affiliates. 
• Draft copies of any management, service, cost-sharing, tax allocation, administrative, or custodial agreements that will be entered into pursuant to NCGS § 58-19-30 or NCGS § 58-34-10, which will require review and approval by the Department. 
• A detailed and complete plan of operation 
• Five-year financial projections, including a balance sheet, income statement, cash flow statement, and risk-based capital forecast. A qualified individual must prepare the projections, and they must be in sufficient detail for the Department to perform a complete analysis. Projections must be accompanied by a list of the assumptions used. 
• A description of the source of the initial capitalization of the applicant, including financial statements for the applicant’s parent or other source(s) of financial support. 
• Evidence that adequate technical expertise (accounting, actuarial, underwriting, etc.) is available either with the applicant through the incorporators and proposed initial staff of the applicant or that the applicant has retained the necessary expertise. 
• An original and two copies of the proposed Articles of Incorporation. 
• A copy of the proposed bylaws. 
• Fingerprint cards on all key personnel as defined by NCGS § 58-7-37.

State Specific Information:

CT:
1. The company must have policyholder surplus of at least $15 million.
2. The company must submit to the Connecticut Insurance Department (“CID”) a Board of Directors Resolution authorizing the company to become a Domestic Surplus Lines Insurer.
3. The CID needs written confirmation that the company does not have and does not write any admitted business in any jurisdiction where the company writes business.
4. The CID will need either: a.) An Amended and Restated Certificate of Incorporation that allows the company to become a DSLI, or b.) Written certification by the company that the current Certificate of Incorporation allows the company to become a DSLI.
5. If the company chooses number 4.a. above, the CID will need to review any changes to the Certificate of Incorporation before they are submitted to the CT Secretary of State. Skip to Item 9 below if the company chooses number 4.b. above since Items 6 through 8 below do not apply in this case.
6. After the CID reviews the documents in number 5 above, the CID will issue a Certificate of Acknowledgement to the company saying:  “This is to Certify, that the Amended and Restated Certificate of Incorporation of the    (company name)    has been filed with the Connecticut Insurance Department.”   (Company will be charged a $40 certified statement fee.)
7. Once the company receives the CID’s Certificate of Acknowledgement, the company would need to file with the CT Secretary of State all required documents to amend their Certificate of Incorporation.  This would include, but is not limited to: a.) A Certificate of Amendment (from the CT Secretary of State – “Form CAS-1-1.0, REV. 10/2014”); b.) The Amended and Restated Certificate of Incorporation for the company; c.) The Certificate of Acknowledgement from the CID; d.) The Board of Directors Resolution authorizing the company to become a DSLI; e.) If a stock company, consent from the company’s shareholder(s) to the company becoming a DSLI. If a mutual company, consent from the policyholders.
8. The CID should receive from the company a complete and original certified copy of the CT Secretary of State’s approval of the changes to the company’s Certificate of Incorporation.
9. If the company chose Item 4.b. above, then the CID will issue a Certified Statement of DSLI Designation, otherwise, the CID will review the CT Secretary of State’s approval and documents and then issue a Certified Statement of DSLI Designation.  See sample - Certificate for Domestic Surplus Lines Insurer. No Certificate of Authority and Compliance (license) will be issued by the CID, only a Certified Statement of DSLI Designation. (Company will be charged a $40 certified statement fee.) 
10. At the time that the company is issued the Certified Statement of DSLI Designation (see Item 9 above), the company must surrender its physical Certificate of Authority and Compliance to the CID.
11. A copy of the Certificate for Domestic Surplus Lines Company (with the Commissioner’s signature) should be placed in a manila folder, labeled with the name of the company, and filed in the cabinet where all the Certificates of Compliance are filed.
12. The company may start writing surplus lines business in CT as of the effective date listed in the CID’s Certified Statement of DSLI Designation (described in number 9 above.)
13. The company will be a Domestic Surplus Lines Non-Admitted Insurer in CT. This means that the company will NOT be licensed in CT (there will be NO Certificate of Authority and Compliance), therefore, the company cannot be licensed in any other state and may only write non-admitted business.

IA : 
Must be eligible surplus lines insurer in at least one jurisdiction other than this state. A streamlined process is available for an existing admitted carrier to convert to a DSLI. The specific documents for review by the Division are as follows:
a. A balance sheet for the most recent calendar quarter that demonstrates the applicant possesses the greater of minimum capital and surplus of at least $15 million or three hundred percent of authorized-control-level risk-based capital pursuant to Iowa Code chapter 521E.
b. The applicant is an eligible surplus lines insurer in at least one jurisdiction other than Iowa.
c. Duly executed resolution of the applicant’s board of directors to be designated as an Iowa domestic surplus lines insurer and stating that the insurer shall only write surplus lines business. The resolution shall not be amended without approval of the commissioner.
d. A plan of operations regarding the applicant’s specialty lines program and financial projections for at least three years.
e. Revised Articles of Incorporation and Bylaws.

IL:
For conversion: Company would have to file duplicate copies of the amended articles of incorporation along with the board resolution indicating that the company wants to convert to a DSLI. We check and make sure that the company has no admitted business on their statements and to confirm that the company has at least $15M in surplus. If the company has any admitted business on their books, they have to either run that business off or transfer the book of business to another company. They have to provide an updated business plan with writing business on a surplus lines basis.  Once that review is completed, we route the Amended Articles of Incorporation and amended certificate of authority for the Director’s approval

LA:
For conversion from an admitted carrier to DSLI - Submit written request to amend the C of A to be a DSLI. Submit a resolution from the Board of Directors confirming the desire to convert. Amend Articles of Incorporation to provide minimum capital and surplus of $15 million. Submit financial projections for at least 3 years using UCAA Form 13P.

MO:
The entity must apply with a UCAA primary or redomestication application and be licensed as a domestic property and casualty insurer in Missouri. The entity must then register in a foreign state as a surplus lines carrier (if not already registered as such) and notify Missouri of the registration and intention to be converted to a domestic surplus lines insurer. Steps are set forth in 20 CSR 200-6.700:  https://www.sos.mo.gov/cmsimages/adrules/csr/current/20csr/20c200-6.pdf.

NE:
The licensing process is different for new company formations vs. conversions from an traditional insurer to a DSLI. Applicants are required to file an NAIC UCAA Corporate Amendment, as well as provide additional information pursuant to a state specific checklist, including an attestation that the insurer does not have any outstanding admitted policies/liabilities.