Brokers

A surplus line broker is an insurance producer with a specialty license that authorizes the broker to solicit, negotiate, and place insurance with eligible or "approved" surplus line insurers. A California resident, a corporation, partnership, or Limited Liability Company with an office located in California, may obtain a surplus line broker license. Effective January 1, 2003, non-residents may now be licensed as surplus line brokers. A surplus line broker license can be obtained by submitting an application, and appropriate bond and fees, to the California Department of Insurance ("CDI"). Refer to California Insurance Code (CIC) Section 1765 for additional information.

California residents must hold their Property and Casualty Broker-Agent license in order to obtain a surplus line broker license. Non-resident applicants must hold a surplus line broker license in their resident state (surplus line license requirements may vary by state).

The Surplus line broker has a duty, at the time of the surplus line insurance placement to detrmine that the nonadmitted insurer is eligible under California Insurance Code (CIC) section1765.1 or on the LASLI (CIC 1765.2).

For more information see Bulletin # 1461.

The Surplus Line Association publishes its Membership Directory which lists all the licensed California surplus line brokers as of the date of publication. A copy of the Membership Directory is available on our website or may be obtained by calling the SLA office at: (415) 434-4900.

California does not recognize courtesy filings, nor does it grant exemptions for them or for licensees submitting such filings from surplus line laws. The only acknowledged surplus line filing in California is performed by a licensed surplus line broker or entity, ensuring full compliance with surplus line laws and regulations. Refer to SLA Bulletin #1123 for more details.

The CDI usually examines the records of surplus line brokers every three years.