- Indiana maintains a list of eligible surplus lines insurers (foreign only) (see Other Comments section #1).
- Indiana does not have a Surplus Lines Association.
- Indiana does not have an Export list.
- Indiana does have an industrial insured exemption (see Appendix C) which will remain in effect. As of 7/21/2011, the NRRA commercial purchaser exemption also became effective.
- Surplus lines tax: 2.5%, payable by broker.
- Indiana has adopted SLIMPACT (SB 578); however, until SLIMPACT is operational, Indiana is still collecting 100% of surplus lines premium tax on multistate risks.
Eligibility and Filing Requirements (All Insurers):
Indiana does not impose formal eligibility requirements other than a sponsoring broker requirement for foreign surplus lines insurers as noted below. Such requirements could come into effect eventually, however, through SLIMPACT. The Compact Commission is charged with promulgating uniform rules for compacting states regarding foreign insurer eligibility requirements as authorized by the NRRA. IC 27-18-2-2.
Eligibility and Filing Requirements (Alien Insurers Only):
NAIC Listing: If alien insurer appears on NAIC Quarterly List, it is approved to do business in Indiana.
Eligibility and Filing Requirements (Foreign Insurers Only):
Sponsoring broker: A licensed surplus lines producer must request by letter
or by email that a foreign (U.S.) surplus lines insurer be added to the state’s
Types of Insurance Exempted from Surplus Lines Regulation:
- Transactions in the state relative to a policy issued or to be issued outside the state, involving insurance on vessels, crafts, hulls or cargoes, marine builder’s risks, marine protection and indemnity or other risks, including strikes and war risks commonly insured under ocean or wet marine forms of policy.
- Industrial Insurance (see Other Comments section #3).
Other Comments or Requirements:
- Indiana eligibility list available at http://www.in.gov/idoi/2567.htm.
Above list applies to foreign surplus lines only; alien surplus lines companies are automatically eligible for surplus lines in this state if they appear on the NAIC Quarterly List of Alien Insurers.
- Insurance Commissioner may order surplus lines broker to cancel unauthorized insurer’s policies if he/she believes financial condition of such insurer does not warrant continuation of the risk.
- Commercial insureds which purchase insurance under the “industrial insured” exception to the state’s unauthorized insurers statute must notify the Department of such transactions and, among other things, document that the purchased coverage was not available in the admitted market.
- Effective July 1, 2007, resident surplus lines producers are no longer required to hold a tax guarantee bond in the amount of $20,000. The surplus lines license was extended from a one year license to a two year license. The surplus lines fees increased from $20 to $80 for a resident surplus lines producer/agency and $120 for a non-resident surplus lines producer/agency.
- Effective September 9, 2011, the IN DOI imposes retaliatory fees for non-resident surplus lines producers of IL.
- Effective May 1, 2012, the IN DOI converted to birth month renewal. Business entity license will continue to renew the month initially licensed. Also, invoices for renewals will no longer be printed and mailed. If producer wishes to receive notice, he must insure his email address is on file with the IN DOI.
- Effective September 13, 2012, the IN DOI imposed retaliatory fees for non-resident surplus line producers of CA, CI, MA and NJ.