SURPLUS LINES COMPANIES

The following coverages are open for export. The diligent effort search is not required for these coverages.

• Accountants Professional Liability

• Architects & Engineers Professional Liability

• Lawyers Professional Liability

• Liquor Legal Liability

• Pension/Welfare Fun Fiduciary Liability and IRA & Keogh Plan Errors and Omissions

Per W.S. § 26-11-104(a)(iii) ↗, insurance shall not be exported for the purposes of securing a lower premium rate than an admitted insurer or for advantages in the terms of the insurance contract.

The insurance producer must conduct a diligent effort search to procure the full amount of insurance required from insurers admitted in Wyoming which are authorized to transact and actually writing that kind and type of insurance in this state. The amount of insurance exported shall only be the excess over the amount procurable from admitted insurers.

The insurance producer must thoroughly complete the Statement of Diligent Effort* documenting the diligent effort search and include all required information from three (3) insurers that are admitted in Wyoming. The form must show the full name of the admitted insurers. Abbreviating the company name or listing a company group name is not acceptable. A copy of the Statement of Diligent Effort* must be provided to the surplus lines broker accepting and placing the surplus lines business.

Prior to procuring coverage from a surplus lines insurer, the surplus lines broker shall verify that a properly conducted diligent effort search was performed and documented as required by W.S. § 26-11-104(a) ↗.

If the expiring coverage is placed with an admitted company and that company has offered renewal, or a quote is available from an admitted company, the coverage is not eligible for placement with a surplus lines insurer.

The diligent effort search must be conducted for each new surplus lines policy, when a policy renews, or when there is any material change to an existing policy.

The Statement of Diligent Effort* shall be retained by the Surplus Lines Broker for a period of five years, and by the Insurance Producer for a period of three years, following termination of the contract and is subject to examination by the commissioner. Unless requested, this form is not sent to the Wyoming Department of Insurance.

Wyoming admitted insurers and their authorized lines may be found using the NAIC Consumer Search Tool ↗.

Eligibility requirements for exempt commercial purchasers are outlined in W.S. § 26-11-104(b)-(c) ↗.

Wyoming uses the definition of Qualified Risk Manager outlined in 15 U.S.C. § 8206(13) ↗.

For non-admitted insurers domiciled in a U.S. jurisdiction, a broker is permitted to place non-admitted insurance with such insurers provided they are authorized to write such business in their state of domicile and maintain minimum capital and surplus of $15 million.

For non-admitted insurers domiciled outside the U.S., a broker may place business with such insurers provided the insurer is listed on the Quarterly Listing of Alien Insurers*.

At this time, the Wyoming Department of Insurance does not maintain a list of eligible non-admitted insurers.

Liability purchasing groups must register with the Wyoming Insurance Department pursuant to Chapter 36 of the Wyoming Insurance Code. A list of registered purchasing groups is available by contacting Tammy Rathburn.

A liability purchasing group may not purchase insurance from an insurer not admitted in Wyoming unless the purchase is effected through a surplus lines broker licensed in this state.

A liability purchasing group may procure and provide liability insurance for group members located in this state without regard to any requirement that a diligent effort be made to procure such coverage from admitted insurers.

No. Motor vehicle liability coverage must be placed with admitted insurance companies or in the automobile assigned risk plan ↗ and not with surplus lines insurers. However, motor vehicle liability coverage that has been declined by the assigned risk program would be eligible for placement with surplus lines insurers. In general, physical damage coverage should be placed in the admitted market with the company issuing the motor vehicle liability policy.

Each individual surplus lines broker that accepts and places surplus lines business for insured’s whose home state is Wyoming is transacting surplus lines insurance business under his or her license and responsible for compliance with all surplus lines reporting and tax payment requirements. The policy transaction report, quarterly affidavit reports and premium tax payments must be filed under the name of the individual surplus lines broker that transacted the business.

Filings are not allowed under the firm name or under the name of any other individual surplus lines broker, including the name of the firm’s designated licensed surplus lines broker.

SURPLUS LINES POLICY TRANSACTION REPORTS

All non-admitted insurance policies issued or renewed, and any subsequent endorsements to those policies must be filed through the SLAS Clearinghouse ↗ within 45 days of the coverage effective date.

SURPLUS LINES BROKER AFFIDAVIT REPORTS

Quarterly affidavit reports are filed electronically through the SLAS Clearinghouse following the end of the quarter and on or before the due date. Invoices will be issued in April, July, October, and January each year for the preceding quarter.

The Affidavit Report is required for all quarterly reporting periods in which surplus lines policies were reported through the clearinghouse. The quarterly affidavit reporting requirement does not apply to surplus lines broker firms.

ANNUAL REPORTS

Wyoming does not require annual reports.

COURTESY/ACCOMMODATION FILINGS

Wyoming does not allow courtesy or accommodation filings under any circumstances.

REQUIRED LANGUAGE

Every new or renewed insurance contract, certificate, cover note or other confirmation of insurance that is

procured and delivered as a surplus lines coverage shall have stamped or printed upon it, in at least ten (10) point bold type font, the name and address of the surplus lines broker who procured the coverage, and the following disclosure:

This insurance contract is issued pursuant to the Wyoming non-admitted insurance laws by an insurer neither licensed by nor under the jurisdiction of the Wyoming Department of Insurance. In the event of insolvency of the surplus lines insurer, losses will not be paid by the Wyoming Insurance Guaranty Association or the Wyoming Life and Health Insurance Guaranty Association.

REQUIRED FORM

The insurance producer shall provide the required written Notice of Surplus Lines Insurance Placement* to the insurance applicant prior to the placement of insurance coverage with a surplus lines insurer. The insurance applicant must sign and date the notice form acknowledging receipt. The insurance producer shall keep the original signed form in the insured’s file and shall provide a copy of the signed form to the insurance applicant and the surplus lines broker.

The completed Notice of Surplus Lines Insurance Placement* shall be retained by the Insurance Producer for a period of three years , and by the Surplus Lines Broker for a period of five years following termination of the contract. The form is subject to examination by the commissioner. Unless requested, this form is not mailed to the Wyoming Department of Insurance.

Certificates issued for surplus lines insurance policies shall use either a form approved for the policy the insurer's home state or a standard form used by the issuing insurer if there is no relevant form approved by the home state.

When Wyoming is the home state, all non-admitted insurance policy transactions are reported through the SLAS Clearinghouse ↗ with 100% of the premium being taxed at the Wyoming tax rate of 3%. A Clearinghouse transaction fee of 0.175% is charged on the gross premiums, less any return premiums, for all policy transactions. The Wyoming non-admitted insurance premium tax and SLAS Clearinghouse transaction fee should be listed on any applicable quotes, proposals, invoices and policy forms.

PENALTIES AND INTEREST CHARGES

Any surplus lines broker or those who independently procure non-admitted insurance that fails to file a report in the form and within the time required, or to pay the premium tax due on or before the due date, may be fined up to $25.00 per day for each day the report is delinquent and shall pay 9% interest on any delinquent tax due. There is no grace period.

A licensed surplus lines broker may accept and place surplus line business for any insurance producer licensed in this state for the kind of insurance involved and may compensate the producer.

The insurance producer’s licensing information must be documented in the records of the surplus lines broker.

The insurance producer is responsible for conducting the diligent search of the admitted markets prior to accessing the surplus lines market through a licensed surplus lines broker. In this situation, the producer is not required to obtain a surplus lines broker license.

If a producer places coverage directly with the surplus lines insurer, the producer license is required to sell, solicit or negotiate insurance, which includes conducting the diligence search of admitted insurers and the surplus lines broker license is required prior to transacting business on behalf of the insured with any surplus lines insurer.

Further information on licensing can be found on the Surplus Lines Broker licensing page.