New Jersey Surplus Lines Insurance
Can a risk be placed with eligible Surplus Lines insurer without going through Surplus
Lines producer? - answer No. Producer must make the placement.
Is Retail Producer required to have producers license with S.L Authority? - answer No.
Retail Producer only need Property and Casualty Authority.
In addition to terms of policy, what info should be included w/ the Declarations Page? -
answer- S.L agent name, address, and license #.
- R.B's name and address.
Does my firm need to licensed? - answer Yes, both agency and agent.
How can I become a licensed producer with Surplus Lines Authority? – answer NIPR
website or Department Licensing Website
Who needs to be licensed in my office? - answer Anyone who sells, solicits, and
negotiates business.
Can my firm obtain S.L Authority without having a residence office in the state? -
answerYes, both resident and non-resident producers can obtain S.L authority.
What is a S.L.A number? - answer5 digit #, assigned by the department, that identifies
the S.L producer.
How to determine that a policy can be written in the S.L market. - answer1) Risk is on
exportable list
2) RB has made diligent effort
Does NJ have a stamping office? - answerNo, the S.L producers are responsible of
ensuring policies belong in S.L market and that all rules are followed
NJ specific stamps to place on policies. - answerYes.
-Domestic
-Foreign and Alien
Who completes the Disclosure Statement? - answerRetail producer must complete at
time of quotation. S.L producer should obtain a copy.
What form does Retail producer use to record "Diligent Effort"? - answerSLPS-6-Cert1
"Certification of Effort to Place Risk with Authorized Insurer"
, - S.L producer must obtain a copy (electronic copy is fine)
Do I need to contact 3 insurers for every single placement if I have hundreds of similar
policies each month? - answerNo, producer must have contacted insurer within 30
days.
However, Certificate of Diligent Effort should still be completed for every insured and
every risk not on the exportable list.
S.L tax rate - answer5% total premium
Are fees taxable? - answerNo
How are S.L taxes paid out? - answerElectronically, using S.L.I.P (Surplus Lines
Information Portal).
Deadline for paying out S.L taxes? - answer45 days after the calendar quarter.
S.L producer policy fees - answerFor Personal Lines -$50
For Commercial Lines - Either $100 OR 2% of premium ( Which ever is greater) up to
$250 max
Can S.L producers charge any other fees? - answerYes. A surplus lines producer may
charge a fee for the actual cost incurred for any services performed by a person that is
not associated with the surplus lines producer, such as inspection services.
Types of insurance exempt from S.L Law - answerRailroad or aviation risks engaged in
interstate or international commerce;
Insurance of vessels, crafts or hulls, cargoes, marine builders' risks, marine protection
and indemnity or other risks including strikes and war risks commonly insured under
ocean or wet marine forms and policies.
What types of insureds are exempt from surplus lines tax in New Jersey? -
answerGovernmental organizations, municipalities, counties, and other state and local
governments are exempt from surplus lines tax.
Does my firm have to file a tax return if no business is written during a calendar quarter?
- answerNo. The quarterly tax filing is only required for those quarters in which surplus
lines business has actually written; there is no quarterly "zero filing."
Are churches, federally chartered bank and credit unions, or any other not-for-profit
entities required to paid surplus lines taxes? - answerYes. Only New Jersey state
governmental organizations, municipalities, and counties agencies are exempt from
surplus lines tax.
What is the Exportable List? - answerThe Exportable List is a listing of insurance
risks/coverages for which New Jersey has deemed no sufficient admitted market exists;
Can a risk be placed with eligible Surplus Lines insurer without going through Surplus
Lines producer? - answer No. Producer must make the placement.
Is Retail Producer required to have producers license with S.L Authority? - answer No.
Retail Producer only need Property and Casualty Authority.
In addition to terms of policy, what info should be included w/ the Declarations Page? -
answer- S.L agent name, address, and license #.
- R.B's name and address.
Does my firm need to licensed? - answer Yes, both agency and agent.
How can I become a licensed producer with Surplus Lines Authority? – answer NIPR
website or Department Licensing Website
Who needs to be licensed in my office? - answer Anyone who sells, solicits, and
negotiates business.
Can my firm obtain S.L Authority without having a residence office in the state? -
answerYes, both resident and non-resident producers can obtain S.L authority.
What is a S.L.A number? - answer5 digit #, assigned by the department, that identifies
the S.L producer.
How to determine that a policy can be written in the S.L market. - answer1) Risk is on
exportable list
2) RB has made diligent effort
Does NJ have a stamping office? - answerNo, the S.L producers are responsible of
ensuring policies belong in S.L market and that all rules are followed
NJ specific stamps to place on policies. - answerYes.
-Domestic
-Foreign and Alien
Who completes the Disclosure Statement? - answerRetail producer must complete at
time of quotation. S.L producer should obtain a copy.
What form does Retail producer use to record "Diligent Effort"? - answerSLPS-6-Cert1
"Certification of Effort to Place Risk with Authorized Insurer"
, - S.L producer must obtain a copy (electronic copy is fine)
Do I need to contact 3 insurers for every single placement if I have hundreds of similar
policies each month? - answerNo, producer must have contacted insurer within 30
days.
However, Certificate of Diligent Effort should still be completed for every insured and
every risk not on the exportable list.
S.L tax rate - answer5% total premium
Are fees taxable? - answerNo
How are S.L taxes paid out? - answerElectronically, using S.L.I.P (Surplus Lines
Information Portal).
Deadline for paying out S.L taxes? - answer45 days after the calendar quarter.
S.L producer policy fees - answerFor Personal Lines -$50
For Commercial Lines - Either $100 OR 2% of premium ( Which ever is greater) up to
$250 max
Can S.L producers charge any other fees? - answerYes. A surplus lines producer may
charge a fee for the actual cost incurred for any services performed by a person that is
not associated with the surplus lines producer, such as inspection services.
Types of insurance exempt from S.L Law - answerRailroad or aviation risks engaged in
interstate or international commerce;
Insurance of vessels, crafts or hulls, cargoes, marine builders' risks, marine protection
and indemnity or other risks including strikes and war risks commonly insured under
ocean or wet marine forms and policies.
What types of insureds are exempt from surplus lines tax in New Jersey? -
answerGovernmental organizations, municipalities, counties, and other state and local
governments are exempt from surplus lines tax.
Does my firm have to file a tax return if no business is written during a calendar quarter?
- answerNo. The quarterly tax filing is only required for those quarters in which surplus
lines business has actually written; there is no quarterly "zero filing."
Are churches, federally chartered bank and credit unions, or any other not-for-profit
entities required to paid surplus lines taxes? - answerYes. Only New Jersey state
governmental organizations, municipalities, and counties agencies are exempt from
surplus lines tax.
What is the Exportable List? - answerThe Exportable List is a listing of insurance
risks/coverages for which New Jersey has deemed no sufficient admitted market exists;
