Alabama
Alabama to Implement Changes Related to Surplus Lines
Effective July 1, 2024, Alabama will be implementing changes related to surplus lines. See attachment for full details.
Summary is as follows:
- A surplus line transaction conducted in accordance with 15 U.S.C. § 8205 may be exempt from the diligent effort requirement
- If surplus line insurance was transacted in the preceding calendar quarter, the surplus line broker shall file a quarterly report (previously was within 30 days)
- Any person licensed as a resident insurance producer in this state for Property & Casualty Lines of Authority and deemed by the commissioner sufficiently experienced in the insurance business, may be licensed as a surplus line broker for the same types of insurance currently licensed in. (added casualty to this paragraph)
- A nonresident person may be licensed as a surplus line broker for the same type of insurance he or she is licensed in good standing in the domicile state.
- Section 27-12-17(b), a reasonable fee for each policy may be charged by filling surplus lines broker for each policy placed in lawful compliance with section 27-10-20. This per-policy fee shall be itemized separately to the customer before purchase.
Added a section "if no surplus line insurance was transacted in the preceding calendar year, no statement is required" - prior to this addition "Each surplus line broker shall, on or before the first day of March of each year, file with the commissioner a verified statement of all surplus line insurance transacted by him or her during the preceding calendar year."
- A surplus line transaction conducted in accordance with 15 U.S.C. § 8205 may be exempt from the diligent effort requirement
- If surplus line insurance was transacted in the preceding calendar quarter, the surplus line broker shall file a quarterly report (previously was within 30 days)
- Any person licensed as a resident insurance producer in this state for Property & Casualty Lines of Authority and deemed by the commissioner sufficiently experienced in the insurance business, may be licensed as a surplus line broker for the same types of insurance currently licensed in. (added casualty to this paragraph)
- A nonresident person may be licensed as a surplus line broker for the same type of insurance he or she is licensed in good standing in the domicile state.
- Section 27-12-17(b), a reasonable fee for each policy may be charged by filling surplus lines broker for each policy placed in lawful compliance with section 27-10-20. This per-policy fee shall be itemized separately to the customer before purchase.
Added a section "if no surplus line insurance was transacted in the preceding calendar year, no statement is required" - prior to this addition "Each surplus line broker shall, on or before the first day of March of each year, file with the commissioner a verified statement of all surplus line insurance transacted by him or her during the preceding calendar year."
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