Surplus Lines Brokers Regulatory Information
Surplus Lines Brokers are required to file the Annual Surplus Lines Brokers Maintenance Assessment Report by March 1 and pay the appropriate assessment in accordance with
§ 38.2-4809.1. The assessment covers the expense of maintaining the Bureau of the Commission responsible for administering the insurance laws of this Commonwealth. The minimum Annual Surplus Lines Brokers Assessment is $300 and is required of every licensed broker even if no business was transacted. Failure to file the report and pay the assessment by March 1, will subject you to a penalty of $50 per day from the due date until filed and a 10% late payment penalty.
Surplus Lines Brokers are required to file Surplus Lines Brokers Insurance Premium Tax Reports with the Department of Taxation. The Department of Taxation is a separate Commonwealth of Virginia State Agency with its own requirements. Therefore, brokers should review those requirements at http://www.tax.virginia.gov/insurance and comply as necessary. Filing your report with the incorrect State Agency does not constitute compliance. If the Bureau of Insurance receives a filing meant for the Department of Taxation, it will be returned to the broker.
Surplus Lines Brokers shall provide Notice to Insured (SLB-9) that insurance is not placed with a licensed insurer and therefore, is not protected under the Virginia Property and Casualty Insurance Guaranty Association.
Surplus Lines Brokers must keep records in accordance with § 38.2-4807 of the Code of Virginia. The records shall be kept open at all reasonable times to examination by the Commission without notice for a period of not less than five years. Surplus lines coverage must be placed only with unlicensed insurers approved by the Commission or included on the NAIC Quarterly Listing of Alien Surplus Lines Insurers.
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