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General

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Digital signatures authorized by a digital signature certification authority are acceptable.

As noted on the California Secretary of State’s website, a digital signature is defined as “an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature.”

Digital signatures must be:

  1. Specific to the person using it.
  2. Verifiable.
  3. Under the exclusive control of the person using it.
  4. Linked to data so that if information on a signed form are changed, the digital signature becomes invalid.
  5. Conforms to all other regulations adopted by the Secretary of State, as found on their website: https://www.sos.ca.gov/business-programs/business-entities/faqs/#top.

Examples:

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The amount of gross premium a surplus line broker must report if premiums are billed and payable in installments shall be the amount of the installment premium itself, provided the amount and due date of each installment, or the basis for determining each installment, are identifiable in the policy or an endorsement. Refer to CIC section 1774(d).
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A surplus line insurer may be sued upon any cause of action arising in this state under any surplus line insurance contract made by it, or any evidence of insurance issued or delivered by the surplus line broker, pursuant to the procedures set forth in CIC sections 1610 to 1620.  Any policy or evidence of insurance issued by the surplus line insurer or the surplus line broker shall contain a provision which both states the substance of this section of the California Insurance Code, and designates the person to whom the Commissioner shall mail process.  Refer to CIC section 1772.
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The North American Industry Classification System (NAICS, pronounced Nakes) was developed as the standard for use by Federal statistical agencies in classifying business establishments for the collection, analysis, and publication of statistical data related to the business economy of the U.S.

NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the old Standard Industrial Classification (SIC) system.

It was also developed in cooperation with the statistical agencies of Canada and Mexico to establish a 3-country standard that allows for a high level of comparability in business statistics among the three countries.

NAICS is the first economic classification system to be constructed based on a single economic concept. Click here to learn more about the background, the development and the difference between NAICS and the SIC.

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Coverage may be considered surplus line if insurance cannot be procured from admitted insurers who are a) admitted for the particular class or classes of business of insurance being written and b) who actually write the particular type of insurance in the insured’s home state.
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The insurance types specified in California Insurance Code Section 1760.5(a)(2)(3) and(4) may be placed with a nonadmitted insurer for a home state insured only by and through a special lines’ surplus line broker.

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The Export List is a list of specific coverage types that can be exported to the surplus line market without the agent, broker, or surplus line broker having to conduct a diligent search of the admitted market.  If the type of risk appears on the Export List, a Diligent Search Report (SL-2) form is not required.

The current Export List can be found here.
 
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The premium charged to insure a particular risk should not be less than the lowest rate which would be accepted by any admitted insurer to insure that risk. Refer to CIC section 1763.
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The non-admitted insurance market, also known as the excess & surplus lines market, provides insurance coverage for risks that are not readily available through admitted insurers. While workers' compensation insurance can be included in the non-admitted market, in California, workers' compensation coverage is generally not allowed to be provided by non-admitted insurers.

Under California Labor Code section 3700(a) mandates that workers' compensation insurance must be obtained from an admitted insurer. This requirement applies to all employers in California, including those with domestic employees. Therefore, in California, workers' compensation coverage must be purchased from an insurer that is licensed and admitted in the state to comply with state regulations.