General Information:

  1. District of Columbia does not maintain a list of eligible surplus lines insurers.
  2. District of Columbia does not have a Surplus Lines Association.
  3. District of Columbia does not have an Export List.
  4. District of Columbia does not have an industrial insured exception but does recognize the exempt commercial purchaser exemption under NRRA.
  5. Surplus lines tax: 2%, payable by broker.
  6. DC has not entered into a multistate agreement or compact for tax allocation purposes:

Eligibility and Filing Requirements (Alien Insurers Only):

DC may not prohibit a surplus lines broker from placing nonadmitted insurance with, or procuring nonadmitted insurance from, a nonadmitted insurer domiciled outside the U.S. that is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC.

Eligibility and Filing Requirements (Foreign Insurers Only):

DC may not impose eligibility requirements on, or otherwise establish eligibility criteria for, nonadmitted insurers domiciled in a U.S. jurisdiction, except:

  • DC may require that the insurer be authorized to write the type of insurance limits domiciliary jurisdiction; and
  • DC may require that the insurer have capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:
  • The minimum capital and surplus requirements under the law of DC; or
  • $15,000,000

The insurance commissioner may waive the minimum capital and surplus requirements above if the commissioner makes an affirmative finding of acceptability after considering: quality of management, capital and surplus of a parent company, company underwriting profit and investment trends, market availability, and company record and reputation within the industry. The commissioner may not make a finding of acceptability if the insurer’s capital and surplus is under $4.5 million.

Types of Insurance Exempted from Surplus Lines Regulation:

None.

Other Comments or Requirements:

  1. DC has no formal process for approving unauthorized insurers. However, the burden is on the surplus lines broker to establish that:
    • A local market is unavailable for the insurance to be placed, and
    • The surplus lines insurer accepting the business is financially sound.
    • There is no refund tax for cancellations or reduction in premium (other than for flat cancellation).
  2. DC insurance statutes and regulations do not address disclosure requirements in surplus lines policies. However, under the Unfair Trade Act (the “Act”), a notice should be provided or the company could be in violation of the Act.