Broker Filing Procedures

Each month the surplus line broker will receive a billing statement. This statement is called a Policy Detail Activity Report. This report includes: a detailed listing of all the filings processed within that month, the premiums and stamping fees for each item, an invoice with stamping fees due for that month, and information about any prior month with an outstanding balance.

Risk Purchasing Group placements are not treated any differently from other surplus line placements. A licensed California surplus line broker (either resident or non-resident) must be involved in the transaction, and a copy of the policy with SL-1 and SL-2 forms must be filed with the SLA. The SL-2 form is not required if the type of coverage or risk meets the Export List requirements.

All surplus line insurance for California home state insureds should be filed, except for Ocean Marine, Aircraft or Spacecraft Insurance, Interstate Railroad, and Reinsurance. Refer to CIC Section 1760.5 for additional information.

The documents to be filed are as follows: the declarations page, certificates, cover notes, or binders for all new and renewal policies, together with the corresponding SL-1 and SL-2 forms and endorsements (including non-money endorsements) for surplus line placements. The SL-2 form is not required if the type of coverage or risk meets the Export List requirements, or the insured is a commercial insured and the disclosure and documentation requirements have been met.

Filings should be submitted in submissions of no more than 75 transactions, with a coversheet. The submission coversheet is required and should include the following information: the assigned SLA broker number, name of the insured, whether the insured is an exempt commercial purchaser (ECP)/commercial insured, policy number, premium amount and stamping fee, invoice date, the percent of the risk allocable to California for each item in the submission, and a grand total of items being filed. The listing should be in the same order as the documents in the submission. 

It would be helpful if the cover sheet also included the type of document being filed (i.e., new, renewal, endorsement, cancellation, extension endorsement or offset), and the total number of items in the submission.

The SLA accepts e-signatures that are a replica of the original signature or a digital signature from the California Secretary of State’s Approved List of Digital Signature Certification Authorities.  Refer to link https://www.sos.ca.gov/administration/regulations/current-regulations/technology/digital-signatures/approved-certification-authorities/