Surplus Line Insurance In Oregon

Insurance coverage on Oregon properties or operations in the state of Oregon placed in insurance companies not admitted to do business in Oregon must meet the requirements of the Oregon Surplus Line Law and if transactions take place in Oregon the placement must be made by an Oregon licensed surplus line producer. To be licensed as a surplus line producer, Oregon residents must be licensed as an Oregon property and casualty agent and pass the Oregon surplus line producer qualifying exam. Non-residents may be licensed in Oregon if they are licensed as a non-resident Oregon property and casualty producer and hold a valid surplus lines producer's license in their resident state (click Oregon Statutes and Licensing Procedures above for more details).

Insurance Company Qualification

It is the sole responsibility of the surplus line producer to determine the eligibility of the insurer to be used at the time placement is made. A list of carriers not rejected by the State of Oregon based on the most recent financial statements provided to the Oregon Insurance Division is included on this website (click Insurer List tab at top of this page). This list is not a list of approved insurers. The list is a tool for the surplus line producer to utilize in discharging his or her responsibility to select an insurer that meets the requirements of the Oregon Statutes at the time of placement. The list in no way implies that the State of Oregon or the Surplus Line Association of Oregon make any assertion that the carriers listed meet the requirements of the Oregon Surplus Line Laws.  More information regarding insurance companies can be found at the Insurance Division's Web site.

Filing

Anyone placing surplus line business on Oregon exposures must complete a filing form, file the form and pay appropriate taxes and charges to the State of Oregon on the premium applicable to Oregon exposures. The Surplus Line Association of Oregon acts as a stamping office to review the filings and assist the State of Oregon in collection of the taxes. All parties writing surplus lines coverage on Oregon exposures must register as filers with the Association. Registered filers have a choice of two filing procedures: 1) Bulk or, if they anticipate a small volume of business, 2) Item (click Filing Procedures at the left for more information).

OREGON SURPLUS LINE LAWS

Oregon insurance laws are found principally in Chapters 731 through 752 of the Oregon Revised Statutes.  They may be accessed via web search at Oregon Revised Statutes.  Comprehensive information on insurance in Oregon can be found on the Insurance Division's Web site.  The surplus line statutes are paragraphs 735.400 - 735.495 and may be accessed at Oregon Surplus Line Laws. 

The principal requirements of the surplus line producer for writing surplus lines in Oregon are:

• The producer must hold a current Oregon license authorizing placement of surplus line business.
• The producer must confirm that a diligent search has been made of admitted carriers actually writing the coverage and that it was not possible to place the coverage with an admitted carrier.
• The producer must determine that the carrier meets the minimum financial requirements established by the statutes on the date insurance is placed.
• The producer must advise the insured that the coverage is being placed with a non-admitted carrier and is not covered by the Oregon Insurance Guaranty Association in the event of insolvency.  A statement declaring this must be affixed prominently to the policy.
• The producer must file pertinent information related to the placement with the Surplus Line Association of Oregon and remit the accumulated taxes and charges on placements.  ("Bulk" basis filers remit taxes and charges quarterly; "Item" basis filers remit taxes and charges with each individual filing.)  Specifics of filing forms and applicable tax rates may be found in the section "Filing Procedures" at the left of this screen.

OREGON CARRIER QUALIFICATION

The Oregon statutes place the sole responsibility for qualification of surplus line carriers on the surplus line producer.  At the time of placement, the producer must confirm that the carrier meets the minimum statutory requirement.  Annually, insurance carriers desiring to write surplus lines insurance in Oregon submit copies of their financial statements to the Oregon Insurance Division.  While the Division does not rule on the acceptability of an insurer, it will declare a carrier ineligible if that financial statement does not indicate compliance with the minimum statutory requirements.  Alien insurers currently on the list published quarterly by the IID of the NAIC are automatically eligible in Oregon.  There is no "white" list of Oregon carriers indicating those eligible for surplus line placements, as each producer bears the responsibility for qualifying the carrier at the time of each placement.  The SLAOR does provide a list of carriers that it believes met the financial requirements on the date of their last annual reports and will probably not be found ineligible by the State.  This list in no way signifies that the SLAOR or the State of Oregon is in any way representing that these carriers are qualified to accept the insurance.  The list may be found under "Insurer List" within the "Filing Procedures: sectioon accessed at the left of this screen.

Surplus Line Insurance Licensing In Oregon

All Applicants:
To secure the proper current forms, all applicants should personally contact Ms. Bonita Beard in the agency licensing department of the State of Oregon Insurance Division, at (503) 947-7209 or Bonita.B.Beard@state.or.us , or via the Insurance Division's Web site.

Remember that applicants must first be licensed as an Oregon property and casualty producer as a prerequisite to being licensed as a surplus line producer.  General requirements for licensing follow.

Residents:
Residents of Oregon desiring to handle surplus line insurance transactions must first become licensed as property and casualty insurance producers.  Having qualified as a property and casualty insurance producer (requirements: pre-licensing education, passing an exam and having an acceptable business and personal background), a licensee may make application to have his/her license endorsed to permit surplus line transactions.  To qualify for surplus line authority, the producer must pass the additional surplus line insurance examination and complete the appropriate application form.  Further details including the necessary forms may be found on the Insurance Division's Web site.

There is no specifically designed study material for the surplus line exam and at this time no education provider is offering training for the exam.  The application form indicates the specific areas that the applicant will be tested on and study may be accomplished by reviewing the applicable statutes and general insurance education courses.   IIA offers courses, leading to the Associate in Surplus Line Insurance (ASLI), which are very good training for the exam.

Non-Residents:
Non-residents may be licensed in Oregon upon submission of an application and the appropriate documentation showing that:

They are licensed as a non-resident property and casualty producer in Oregon.
They are licensed as a surplus line producer in their state of residence.
Their state of residence or the regulator in their state of residence will license Oregon residents on the same basis
as Oregon will license residents of that state.


Further information (including the necessary forms) is availableon the Insurance Division's Web site.