Surplus lines compliance software that keeps the diligent search in the file, not the inbox
Surplus lines insurance is a category of coverage placed with a nonadmitted insurer, one not licensed in the state where the risk sits, generally because the admitted market declined it. The placing broker carries the diligent search, disclosure, filing and premium tax duties, and since the Nonadmitted and Reinsurance Reform Act of 2010 only the insured's home state may require that premium tax. Neurobird keeps declination evidence, the home state basis, carrier eligibility and the filing calendar in one placement file.
Neurobird Surplus Lines Insurance in short
- Capture declinations from admitted carriers as evidence, attached to the placement, not to an inbox
- Record the home state determination and the basis for it under the federal home state rule
- Track state filing and stamping office deadlines per placement rather than per person
- 2010 The Nonadmitted and Reinsurance Reform Act, title V of Dodd-Frank enacted July 21, 2010, made the insured's home state the only state that may require premium tax on nonadmitted insurance. GovInfo, 15 U.S.C. chapter 108
- $100,000 An exempt commercial purchaser must have paid more than $100,000 in aggregate nationwide commercial property and casualty premiums in the preceding 12 months, alongside one of several size tests. GovInfo, 15 U.S.C. 8206
- Pricing runs 160 to 700 US dollars per month across 3 tiers. Early access is free.
What surplus lines brokers and wholesale agencies actually deal with
Why it stays broken
The rules are federal in outline and state by state in practice. The NRRA settled home state taxation in 2010, but diligent search evidence, stamping office formats and filing deadlines still differ everywhere, and the agency management system has one field for none of it.
A placement with no evidenced search is a fine waiting for an audit, even when the market really did decline it.
Many other states did not agree that there was a need for surplus lines and they wanted to prohibit these insurers from operating in their state.
The placement file, as a broker would build it
A working preview. Tick an item to file it against the placement.
| Requirement | Status | Next due | |
|---|---|---|---|
| Stamping office filing | current | in 42d | |
| Diligent search, 3 admitted declinations | due soon | in 9d | |
| Home state determination, multi state risk | current | in 120d | |
| Surplus lines notice on the policy | overdue | 3d late | |
| Premium tax allocation | current | in 64d |
Tick a requirement to file evidence against it.
Neurobird Surplus Lines Insurance Compliance Platform
Treat the placement file as the compliance record. Evidence attaches at the moment it exists, and the state rules drive the calendar rather than a person's memory.
- 1Capture declinations from admitted carriers as evidence, attached to the placement, not to an inbox
- 2Record the home state determination and the basis for it under the federal home state rule
- 3Track state filing and stamping office deadlines per placement rather than per person
- 4Keep carrier eligibility evidence, including alien insurer listing, against every policy placed
What changes with Neurobird Surplus Lines Insurance?
The same work, read left to right: how it runs today, and how it runs once the record is in one place.
| Today | With Neurobird Surplus Lines Insurance |
|---|---|
| Every state wants the diligent search evidenced differently, and the declination emails are sitting in an inbox rather than in the file | Capture declinations from admitted carriers as evidence, attached to the placement, not to an inbox |
| Home state determination decides who gets the premium tax, and on a multi state risk that decision gets made quickly and documented never | Record the home state determination and the basis for it under the federal home state rule |
| Filing deadlines and stamping office rules differ by state, and the calendar for them is a person | Track state filing and stamping office deadlines per placement rather than per person |
Who is this for?
Same duties, three different shapes of book.
You hold the licence yourself
Every duty lands on you. You need the file to assemble itself while you are working the market.
Several brokers, one compliance standard
Practice drifts between desks. You need the same evidence standard on every placement without reading every file.
Risks in many home states
Filing rules, formats and deadlines all differ. You need per state profiles rather than per state heroics.
How surplus lines is actually regulated
Useful if you are writing a compliance procedure or preparing for a market conduct exam. Each source links out.
The Nonadmitted and Reinsurance Reform Act, title V of Dodd-Frank enacted July 21, 2010, made the insured's home state the only state that may require premium tax on nonadmitted insurance.
GovInfo, 15 U.S.C. chapter 108An exempt commercial purchaser must have paid more than $100,000 in aggregate nationwide commercial property and casualty premiums in the preceding 12 months, alongside one of several size tests.
GovInfo, 15 U.S.C. 8206The size tests include net worth above $20,000,000, annual revenues above $50,000,000, more than 500 employees, a not for profit budget of at least $30,000,000, or a municipality above 50,000 people.
GovInfo, 15 U.S.C. 8206Surplus lines broker licensing, diligent search evidence and filing mechanics remain state functions, so a multi state book carries several different procedures at once.
NAIC, surplus linesState regulators publish their own surplus line broker licensing and filing requirements, which is where the practical rules for each placement come from.
California Department of Insurance, surplus line brokerHow does Neurobird Surplus Lines Insurance work?
Attach the declinations as evidence
Each admitted carrier approach and declination is recorded against the placement, with date, carrier and reason, so the search is provable.
Record the home state and why
Principal place of business, or the allocation basis where the risk sits out of state. The determination and its basis are stored, not assumed.
Drive the calendar from the placement
Each state's filing, stamping and surplus lines tax requirements attach to the placement, so deadlines appear on their own rather than being remembered.
Surplus lines insurance software questions, answered
Key terms
- What is surplus lines insurance?
- Surplus lines insurance is coverage placed with a nonadmitted insurer, meaning an insurer not licensed in the state where the risk sits, usually because the admitted market will not write the risk. It is placed through a licensed surplus lines broker who carries the diligent search, disclosure, filing and premium tax duties.
- What is a diligent search?
- A diligent search is the documented effort to place the risk with admitted insurers before going to the nonadmitted market. Most states require evidence of declinations, and the number and form vary by state, which is why the evidence has to live in the placement file rather than in an email thread.
- What is an exempt commercial purchaser?
- Under 15 U.S.C. 8206 an exempt commercial purchaser employs a qualified risk manager, has paid more than $100,000 in nationwide commercial property and casualty premiums in the preceding 12 months, and meets one of several size tests such as net worth above $20,000,000, revenues above $50,000,000, more than 500 employees, or a municipality with a population above 50,000. For those buyers the diligent search requirement can be waived if disclosure is made and the request is in writing.
What did the NRRA change?
The Nonadmitted and Reinsurance Reform Act, enacted July 21, 2010 as title V of Dodd-Frank, made the insured's home state the only state that may require premium tax on a nonadmitted placement, and set uniform eligibility limits on what states may require of nonadmitted insurers domiciled in the United States.
Does this replace our agency management system?
No. It handles the compliance file that the agency system was never designed for: search evidence, home state basis, eligibility and filings. The policy and the accounting stay where they are.
Why we are building this
Surplus lines exists because some risks are genuinely hard to price. The broker's job is to prove the admitted market said no, place the risk properly, and file with the right state.
Two of those three are compliance work that no agency management system was designed to hold. So it lives in inboxes and spreadsheets, and shows up as a problem years later during an exam.
We would rather build this with brokers who file every month. Tell us how your placement file is put together, and where we have got it wrong.
Where the requirement comes from
The federal statute and the regulator sources that set the practical rules.
- GovInfo, 15 U.S.C. chapter 108 state based insurance reform The NRRA as codified: home state taxation, uniform eligibility, streamlined application for exempt commercial purchasers.
- NAIC, surplus lines Regulator level background on the nonadmitted market and how states approach it.
- California Department of Insurance, surplus line broker An example of state level licensing requirements a broker must satisfy and maintain.
- Texas Department of Insurance, agent and adjuster licensing Another state regulator's licensing hub, useful for comparing how requirements differ by state.
How much does Neurobird Surplus Lines Insurance cost?
Priced per broker seat because the duty sits with the licensed broker. Placements and carriers are unlimited on every tier.
- Placement file
- Declination capture
- Home state determination
- Filing calendar
- Email support
- Everything in Solo broker
- Per state rule profiles
- Stamping office formats
- Carrier eligibility register
- Named contact
- Everything in Wholesale agency
- Premium tax allocation
- Exam evidence pack
- Agency system sync
- Onboarding included
Get free early access
If you place surplus lines, tell us where your diligent search evidence actually lives today.
Straight answer on where this is: In development. Early access gets the working preview, influence on what ships first, and early access pricing. It does not get you a login today.
Prefer email? Write to office@neurobird.com and a person will reply. No autoresponder.