- Missouri maintains a list of eligible surplus lines insurers (see Other Comments section #1).
- Missouri does have a Surplus Lines Association (see Other Comments section #3).
- Missouri does not have an export list.
- Missouri does have an industrial insured exemption that will remain effective (see Appendix C). The NRRA exempt commercial purchaser exemption was incorporated into Missouri law and became effective on 7/7/2011.
- Surplus lines tax: 5% (less return premium, and exclusive of state, federal, and local taxes), payable by broker.
- Missouri has not affiliated with any existing compact (SB 132).
- Missouri does allow domestic surplus lines insurers in the state (see Other Comments section #11).
Eligibility and Filing Requirements (All Insurers):
A surplus lines licensee shall not place coverage with a nonadmitted insurer unless the licensee determines that the nonadmitted insurer:
- Meets the capital and surplus requirements of Missouri or $15 million (the director may waive the financial requirements if the nonadmitted insurer’s capital and surplus is at least $4.5 million and the director finds the insurer is acceptable);
- Appears on the most recent list or eligible surplus lines insurers published by the director or appears on the most recent Quarterly Listing of Alien Insurers maintained by the NAIC; and
- Surplus lines carriers are requested to provide premium report by July 1 (see Other Comments section #6).
Eligibility and Filing Requirements (Alien Insurers Only):
NAIC Listing automatically puts company on eligibility list.
Eligibility and Filing Requirements (Foreign Insurers Only):
- Licensed in home state.
- $15 million in capital and surplus.
Types of Insurance Exempted from Surplus Lines Regulation:
Other Comments or Requirements:
- Missouri eligibility list available at www.insurance.mo.gov under Agents and Producers section.
- A letter is required from the regulatory body having authority over the company’s operations stating that, according to its records, the company is prompt and equitable in its loss payments to policyholders and payments are in accordance with policy provisions.
- Contact information for the Surplus Lines Association of Missouri is:
Ann Monaco Warren
Inglish & Monaco, P.C.
237 East High Street
Jefferson City, MO 65101
- There is no bond requirement for either resident or non-resident surplus lines licensees.
- Every evidence of insurance negotiated, placed or procured under the provisions of the Missouri surplus lines law and issued by a Missouri surplus lines licensee shall, on the face of the policy or declaration page of the policy, bear the name of the licensee and the following legend in 10-point type:“This is evidence of insurance procured and developed under the Missouri Surplus Lines Laws. It is NOT covered by the Missouri Insurance Guaranty Association. This insurer is not licensed by the state of Missouri and is not subject to its supervision.”
- The report of Missouri business must include the name and address of the producer, name and address of the insured, policy number, effective date of the coverage and premium amount. This document has no bar code and may be transmitted by email to [email protected].
- The Missouri Department of Insurance in 2006 clarified its view that surplus lines taxes apply to policy fees as well as premium taxes. The change appears in Missouri’s Regulation, § 20 CSR 200-6.300 Surplus Lines Insurance Fees and Taxes. The department’s explanation of the amendments to sections (1), (2) and (3) of this rule is as follows:“This amendment clarifies that any fee charged in connection with the placement of surplus lines insurance is subject to the surplus lines insurance premium tax, regardless of whether the fee is charged by the surplus lines insurer or the surplus lines licensee. As such the amendment is consistent with the current practice of the department and is intended to halt the avoidance of tax by merely shifting the stated source of fees from the insurer to the licensee.”
- All surplus lines licensees are required to hold an underlying Property and Casualty producer license as a prerequisite to obtaining and maintaining the surplus lines license. Producer licenses are renewed on a biennial basis on the license anniversary date. The aforementioned surplus lines provisions have no effect upon producer licenses.
- Appendix One filing, which was required to be filed within 30 days of placement, is now required within 45 days of the end of the quarter in which the placement was made.
- In 2011, the Missouri legislature enacted Senate Bill 132 (SB 132) which adopts amendments to the insurance code to comply with the federal Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) relating to surplus lines insurance.The legislation added the terms “exempt commercial purchaser”, “home state”, “nonadmitted insurance” and “qualified risk manager” to the definition section of the Missouri Surplus Lines Law. The definitions for such terms are consistent with the NRRA (15 USC 8206)(Section 384.015).Under the terms of the act, a surplus lines licensee seeking to place nonadmitted insurance in Missouri for an exempt commercial purchaser shall not be required to satisfy any requirement to make a due diligence search to determine whether the full amount or type of insurance by the exempt commercial purchaser can be obtained from nonadmitted insurers if:• The surplus lines licensee placing the surplus lines insurance has disclosed to such exempt commercial purchaser that the insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
• The exempt commercial purchaser has subsequently requested in writing the surplus lines licensee to place such insurance from a nonadmitted insurer (Section 384.021).
- The Missouri Legislature enacted Legislation allowing for the creation of domestic surplus lines insurers. The Legislation also specifies that a nonadmitted insurer that is domiciled in the state may be deemed a domestic surplus lines insurer if the:• Insurer possesses policyholders’ surplus of at least $20 million;
• Insurer is an approved or eligible surplus lines insurer in at least one jurisdiction other than Missouri;
• Board of directors of the insurer has passed a resolution seeking to be a domestic surplus lines insurer in Missouri; and
• Director of the Department of Insurance, Financial Institutions and Professional Registration has given written approval for the insurer to be a domestic surplus lines insurer.