What is a surplus line brokers certificate?
A. A surplus line broker’s certificate is a document evidencing the placement of insurance with an eligible nonadmitted insurer. It must be signed by the surplus line broker, issued in the surplus line broker’s own name (not in an insurer’s name) and contain all of the essential provisions of the policy. It is issued under prior written authority (also known as “binding authority”) from an insurer, or if the surplus line broker does not have a binding authority contract, then after receiving notification that the coverage has been obtained. Ordinarily, a surplus line broker’s certificate is a temporary document used pending issuance of the formal policy, but it is sometimes used in lieu of a policy if issued under binding authority and containing complete terms of the insurance. Refer to CIC sections 381, 1764, and 1764.2. [Note: This should not be confused with a “certificate” issued as proof of insurance to third parties, typically by a retail agent/broker, such as an “ACORD certific
Related Questions
- For surplus line broker organizations that have paid the $700 fee on or after January 1, 2008, how will the additional $300 fee be charged?
- What is the amount of gross premium a surplus line broker should report if premiums are billed and payable in installments?
- What transaction date does a surplus line broker use to pay surplus line tax?
