# 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.

- URL: https://neurobird.com/surpluslines/
- Product: Neurobird Surplus Lines Insurance Compliance Platform
- Niche: surplus lines insurance
- Buyer: surplus lines brokers and wholesale agencies
- Status: in development, open for early access
- Updated: 2026-08-21

## What Neurobird Surplus Lines Insurance does

- 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
- Keep carrier eligibility evidence, including alien insurer listing, against every policy placed

## How it works

1. **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.
2. **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.
3. **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.

## From the source material

> 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.

Source: NAIC, surplus lines, https://content.naic.org/insurance-topics/surplus-lines

## Industry context

- **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. (source: GovInfo, 15 U.S.C. chapter 108, https://www.govinfo.gov/content/pkg/USCODE-2022-title15/html/USCODE-2022-title15-chap108.htm)
- **$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. (source: GovInfo, 15 U.S.C. 8206, https://www.govinfo.gov/content/pkg/USCODE-2022-title15/html/USCODE-2022-title15-chap108.htm)
- **$50,000,000** The 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. (source: GovInfo, 15 U.S.C. 8206, https://www.govinfo.gov/content/pkg/USCODE-2022-title15/html/USCODE-2022-title15-chap108.htm)
- **Per state** Surplus lines broker licensing, diligent search evidence and filing mechanics remain state functions, so a multi state book carries several different procedures at once. (source: NAIC, surplus lines, https://content.naic.org/insurance-topics/surplus-lines)
- **1 licence** State regulators publish their own surplus line broker licensing and filing requirements, which is where the practical rules for each placement come from. (source: California Department of Insurance, surplus line broker, https://www.insurance.ca.gov/0200-industry/0050-renew-license/0200-requirements/surplus-line-broker.cfm)

## Pricing

- Solo broker: $160 per user, per month
- Wholesale agency: $380 per user, per month
- Multi state: $700 per user, per month

## Questions

### 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 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.

### 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.

### 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.

## Sources

- [GovInfo, 15 U.S.C. chapter 108 state based insurance reform](https://www.govinfo.gov/content/pkg/USCODE-2022-title15/html/USCODE-2022-title15-chap108.htm)
- [NAIC, surplus lines](https://content.naic.org/insurance-topics/surplus-lines)
- [California Department of Insurance, surplus line broker](https://www.insurance.ca.gov/0200-industry/0050-renew-license/0200-requirements/surplus-line-broker.cfm)
- [Texas Department of Insurance, agent and adjuster licensing](https://www.tdi.texas.gov/agent/index.html)

## Contact

- office@neurobird.com
- https://neurobird.com/