Surplus Lines Application

The provisions of N.D.C.C. § 26.1-44 govern the placement of surplus lines insurance when the insured's home state is North Dakota. This state's surplus lines insurance law was changed effective April 19, 2011, to conform with the requirements of the U.S. Nonadmitted and Reinsurance Reform Act of 2010 (NRRA).

An application for registration as an eligible surplus lines insurer must be submitted to the North Dakota Insurance Department for approval prior to issuing a policy for surplus lines insurance.

An insurer domiciled in the U.S. or its territories seeking to be registered in North Dakota as an eligible surplus lines insurer must meet the following requirements:

  • Must have established satisfactory evidence of good repute and financial integrity, and
  • Must have capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals at least $15,000,000.

The capital and surplus requirement above may be satisfied if the insurer's capital and surplus is equal to or exceeding $4,500,000, upon an affirmative finding of acceptability by the Insurance Commissioner. The finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the Commissioner make an affirmative finding of acceptability when the nonadmitted insurer's capital and surplus is less than $4,500,000.

An insurer not domiciled in the U.S. or its territories seeking to be registered in North Dakota as an eligible surplus lines insurer must be listed on the Quarterly Listing of Alien Insurers maintained by the National Association of Insurance Commissioners (NAIC) International Insurers Department.

Surplus Lines Insurer Registration

Registration as an eligible surplus lines insurer requires the submission of a complete application consisting of a request letter and the following information:

  • Agent for Service of Process form (SFN 8330);
  • Affidavit (SFN 4795) pursuant to N.D.C.C. § 26.1-44-02;
  • Data Processing Questionnaire (SFN 4792);
  • Most recently filed Annual Statement, with original signatures on jurat page, and demonstrating compliance with minimum capital and surplus requirements (not applicable to insurers listed on the National Association of Insurance Commissioners (NAIC) Listing of Alien Insurers);
  • Financial examination report, issued by the company's domiciliary state, with an "as of" date not more than five years prior to the application date (not applicable to insurers listed on the NAIC's Quarterly Listing of Alien Insurers); and
  • Nonrefundable application fee of $100.

The North Dakota Insurance Department will issue an approval letter if the application is approved. An application may be filed at any time throughout the year. All applications and fees should be directed to the Department.

Annual Renewal Requirement

The registration of an eligible surplus lines carrier must be renewed by March 1 of each year via the Online Renewal System. The surplus lines insurer's Annual Statement must be filed with the National Association of Insurance Commissioners (NAIC) by March 1 of each year.

A written notification of any corporate changes, such as a name change, address change, merger, or redomestication, must be sent to the North Dakota Insurance Department in a timely manner. The notification should include updated documents (Service of Process, Affidavit, Data Form) to reflect the change, as applicable.

Renewal Affidavit for Nonadmitted Companies

The Renewal Affidavit For Nonadmitted Companies must be submitted using the North Dakota Insurance Department's enhanced Online Renewal System.