**Who May be Licensed**
**Nonresident - Individual**

1\.   Applicant must be a licensed nonresident insurance
     producer.

**License Fee and Term Section**
**Resident - Individual**

1\.   Initial license application fee is $120.  Renewal fee
     is $120.

2\.   License term is 24 months, running concurrently with the
     underlying producer license.  The license expires on the last
     day of the producer's birth month.

3\.   Initial license applications can be submitted either
     electronically through the National Insurance Producer
     Registry (NIPR) or by mailing a paper application to the
     Department of Insurance.  License renewals must be submitted
     through the NIPR.  

4\.   Comprehensive licensing information is available at the
     following website: `https://bit.ly/3QwEovA`

     a.   For a link to the NIPR, click on "Insurance Producer"
          then click on "Link to NIPR".
     b.   For information specific surplus lines agent licenses and
          the paper application, click on "Surplus Lines Agent"
          then click on "Surplus Lines Agent Licensing Packet".

**Nonresident - Individual**

1\.   Initial license application fee is $120.  Renewal fee
     is $120.

2\.   License term is 24 months, running concurrently with the
     underlying producer license.  The license expires on the last
     day of the producer's birth month.

3\.   Initial license applications can be submitted either
     electronically through the National Insurance Producer
     Registry (NIPR) or by mailing a paper application to the
     Department of Insurance.  License renewals must be submitted
     through the NIPR.  

4\.   Comprehensive licensing information is available at the
     following website: `https://bit.ly/3QwEovA`

     a.   For a link to the NIPR, click on "Insurance Producer"
          then click on "Link to NIPR".
     b.   For information specific surplus lines agent licenses and
          the paper application, click on "Surplus Lines Agent"
          then click on "Surplus Lines Agent Licensing Packet".

**Affidavit Requirements**
**General Provisions**

1\.   For insureds whose home state is Tennessee, insurance
     coverage is not eligible for placement as surplus lines
     insurance unless the full amount of coverage required is
     not procurable, after a diligent effort has been made to do
     so, from authorized insurers in Tennessee.

     a.   The amount of insurance eligible for surplus lines is
          only the amount in excess of the amount procurable from
          authorized insurers.
     b.   In order to satisfy the diligent effort standard, a
          specified number of authorized insurers that actually
          write the type of insurance sought must decline to insure
          the risk.
     c.   The required number of declinations (either 1 or 3)
          depends on the type of insurance sought.  A document
          setting out the required number of declinations is available at the following website:
`https://bit.ly/3FHeiQy`  Click on "Tennessee Surplus Lines Declination Requirement".

3\.   Within 30 days of the effective date of a new or renewal
     policy, or upon the execution of an endorsement on a new or
     renewal policy, the surplus lines agent must electronically
     file the policy details through the Surplus Lines Information
     Portal (SLIP) of the SLAS Clearinghouse.

     a.   The surplus lines agent must report the coverage code,
          transaction type, effective and expiration dates,
          insurer, premium, and policy fees for the policy.
     b.   SLIP can be accessed at the following website:
          `https://bit.ly/3FFOX9F`

4\.   On a quarterly basis, the surplus lines agent must
     electronically submit an affidavit through SLIP attesting that
     each policy placed or renewed pursuant to the surplus lines
     law, and each policy endorsement, was eligible for such
     placement.

     a.   The surplus lines agent files a single affidavit to
          cover all policies submitted through SLIP during the
          preceding calendar quarter.
     b.   Affidavits are due as follows:

          POLICIES SUBMITTED DURING       AFFIDAVIT DUE DATE
          Q1. January 1 - March 31             May 15
          Q2. April 1 - June 30               August 15
          Q3. July 1 - September 30          November 15
          Q4. October 1 - December 31        February 15

5\.   Additional information related to reporting of policy
     details and submission of affidavits is available at the
     following website:  `https://bit.ly/3FHeiQy`  Click on
     "Surplus Lines Filing Procedures".

**Fees** 
A SLIP transaction fee of 0.175% of gross premiums is owed for all
surplus lines policies.

REPORTING FORM AND PAYMENT OF TAX

Item deleted.

1\.   At the end of each calendar quarter, a surplus lines agent
     will receive an invoice in SLIP detailing the taxes and fees
     owed for policies reported during the preceding quarter.  The
     schedule for surplus lines tax and clearinghouse transaction
     fees invoicing is as follows:

     FILINGS RECEIVED DURING     INVOICES ISSUED  PAYMENT DUE DATE

     Q1. January 1 - March 31         April          May 15
     Q2. April 1 - June 30            July           August 15
     Q3. July 1- September 30        October         November 15
     Q4. October 1- December 31      January         February 15

2\.   Taxes must be paid to the Department via ACH transaction in
     SLIP. The SLIP transaction fee can be paid to the SLAS
     Clearinghouse either via ACH transaction in SLIP or by check.

3\.   Additional information related to payment of taxes and fees is
     available at the following website:  `https://bit.ly/3FHeiQy`
     Click on "Surplus Lines Filing Procedures".

10\.  A surplus lines agent that needs to report transactions or
     pay taxes on policies effective prior to 10/01/2016 should
     email surplus.lines@tn.gov for instructions on filing
     procedures.