How do I apply for a Nevada surplus lines broker license?

Answer: Nevada's laws, regulations, licensing instructions and forms can be accessed from the Nevada Division of Insurance website at https://www.doi.nv.gov

The Division strongly suggests applicants and licensees utilize the online resources such as Sircon and the National Insurance Producer Registry (NIPR) to speed up the licensing process and insure statutory compliance. Resident and non-resident producers and agencies may apply or renew online through Sircon at www.sircon.com/nevada or NIPR at www.nipr.com. Be advised, transaction fees may apply. There is a link for education providers for prelicensing and CE as well.

Once I'm a licensed Nevada surplus lines broker, how do I become a member of the Nevada Surplus Lines Association (NSLA)?

Answer: A broker must be a member of NSLA as a condition of continued licensure under NRS 685A. Upon notification from the Nevada Division of Insurance regarding your license status, contact us via email at info@nsla.org and send your surplus lines license number, your brokerage surplus lines license number if applicable, your email address, mailing address, phone number, and the name and email address of the person who will be the Surplus Lines Information Portal (SLIP) website administrator.

Brokerage Responsibility

Whose responsibility is it to determine insurer’s financial solvency?

Answer: NAC 685A.205 The broker shall make a reasonable effort to determine the financial solvency of any foreign or alien insurer which is not an admitted insurer before placing any surplus lines insurance with that insurer. To add an insurer to your list of Selected Insurers (under Settings) in SLIP, contact us at info@nsla.org

Does Nevada require due diligence?

Answer: NAC 685A.215 Insurance which is not readily obtainable from admitted insurers after a diligent effort has been made to obtain the insurance, may be obtained from eligible brokers. Upon filing the report required by NRS 685A.050, the broker shall affirm that the coverage is unavailable from admitted insurers and provide evidence that at least three insurers which are marketing that line or class of insurance have declined to provide that coverage. The evidence of declinations does not need to be documented or attached to your SLIP filing.  Upon filing the report, complete the three fields under Declination Detail.

NAC 685A.240 (e) If a type of coverage is on the list of open lines eligible for export which is approved by the Commissioner, statements of declinations from admitted insurers pursuant to subsection 1 of NAC 685A.215 are not required on the report.

Does Nevada allow acceptance of business (courtesy filings) from agents or brokers?

Answer: NAC 685A.220 In accepting business from producing agents or brokers, the broker assumes the same statutory responsibilities and obligations as would exist if there were no other producing agent or broker.

The broker shall maintain the records and files prescribed by NRS 685A.160 and NAC 685A.250.

NRS 685A.150 A licensed surplus lines broker may accept surplus lines business from any agent or broker licensed in this state for the kind of insurance involved and may compensate the agent or broker thereof.

How long do I have to file a report?

Answer: NRS 685A.050 The broker shall, within 90 days after such insurance is so effected, submit a file with the report of coverage and any other information the Commissioner requires under regulations adopted pursuant to NRS 685A.040.

Does Nevada require specific wording on the insurance contract?

Answer: NRS 685A.090 Each insurance contract procured and delivered as a surplus lines coverage pursuant to this chapter must have conspicuously stamped upon it:

"This insurance contract is issued pursuant to the Nevada insurance laws by an insurer neither licensed by nor under the supervision of the Division of Insurance of the Department of Business and Industry of the State of Nevada. If the insurer is found insolvent, a claim under this contract is not covered by the Nevada Insurance Guaranty Association Act."

What information is required on the insured's contract?

Answer: NRS 685A.080 The following information is required: the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged, taxable fees collected from the insured, the surplus lines premium tax and filing fee, the name and address of the insured, the name of the insurer, and the stamped wording. Refer to above statute for entire paragraph.

Who is responsible for making a filing if two or more persons licensed as surplus line brokers are involved in the placement of a policy?

Answer: A licensed Nevada surplus lines broker may make the filing. We do not distinguish between retailer and wholesaler or resident and non-resident. The person responsible for negotiating, effecting the placement and remitting the premium, shall be considered transacting under his or her surplus lines broker’s license and responsible for making the filing.

Who can charge fees and is there a limit?

Answer: NRS 685A.155 as amended by SB 86 The licensed surplus lines broker who is first engaged by or on behalf of an applicant for insurance may charge a fee for procuring surplus lines coverage. Except as otherwise provided by agreement between the insurer and that broker, the sum of the fee and any other commissions, fees and charges payable to that broker must not exceed 20 percent of the premium paid by the insured. 

What transaction types am I required to file?

Answer: NAC 685A.240 A filing must be made for a new or a renewal of a contract of insurance. If the coverage and category code does not appear on the approved export list, the filing must include declination details. You are also required to make an amended filing for each cancellation and each endorsement which changes the named insured, the description or location of the subject of insurance, the coverage, conditions, terms, premiums, or participating insurers. Endorsements extending the policy for any length of time are filed as extensions and treated the same as renewals.

How do I file an endorsement if the Broker of Record (BOR) has changed?

Answer: Endorsements for new business or renewals after a BOR change should be submitted with some wording in the Notes box to alert us of the BOR. We will be able to connect the original filing to your endorsement.

How is Nevada determined as the home state?

Answer: NRS 685A.034 For an insured, the state in which the insured maintain its principal place of business or, in the case of an individual, the individual’s principal residence would be the home state. If 100% of the insured risk is located outside of Nevada, the state to which the greatest percentage of the insured’s taxable premium for that insurance is allocated would be the home state. Refer to the above statute for group insurance.

Taxes and Fees

What is Nevada’s filing fee?

Answer: NAC 685A.370 Each broker who is a member of an organization shall pay to the organization a fee for the review of surplus lines coverage. The current fee for each policy is .4 (.004) percent of the amount subject to tax pursuant to NRS 685A.180. Filing fees are payable to NSLA by e-payment on the Surplus Lines Information Portal (SLIP).

What is the surplus lines premium tax?

Answer: The premium tax is a tax on surplus lines coverage written by a broker with unauthorized eligible insurers, accessed at the same rate of tax as imposed by law on the premiums of like coverage written by authorized insurers. The current premium tax rate is 3.5 (.035) percent. Taxes are payable to the State of Nevada by e-payment on SLIP. Before you make your first electronic payment, you will need to provide your bank with the ACH company ID numbers found on the SLIP Pay Invoices page.

Does Nevada require an Annual Statement?

Answer: Nevada does not require an Annual Tax Statement. We do not require Quarterly Reports with zero dollars in business.

Does Nevada require Quarterly Statements?

Answer: NRS 685A.175 A broker who has written coverage for which this State is the insured's home state shall pay, by the date described in subsection 2, the tax for each calendar quarter as directed by the Commissioner and shall file as directed by the Commissioner, a copy of a quarterly report which includes an accounting of:

(a) The aggregate gross premiums for the quarter;

(b) The aggregate of the return premiums received; and

(c) The amount of tax remitted to the Commissioner.

2. The tax filings and payments required by subsection 1 must be submitted by:

(a) February 15 for the calendar quarter ending the preceding December 31.

(b) May 15 for the calendar quarter ending the preceding March 31.

(c) August 15 for the calendar quarter ending the preceding June 30.

(d) November 15 for the calendar quarter ending the preceding September 30.

NRS 685A.190 A broker who fails to make and file the quarterly statement required pursuant to NRS 685A.175 is liable for a penalty of $500.

Do all fees and taxes need to be disclosed?

Answer: All premiums, fees, inspection fees, premium taxes and filing fees must be shown separately on the insured's copy of the insurance contract. The document attached to the filing must be a copy of the same document provided to the insured.

How do I request a surplus lines tax refund?

Answer: The Nevada Division of Insurance established procedures for requesting tax refunds. The required information and documents can be obtained by contacting NSLA. 

General Questions

Are there any exemptions to the Surplus Lines Law?

Answer: NRS 685A.020 The Nonadmitted Insurance Law shall not apply to reinsurance or to the following insurances when placed by general lines brokers or surplus lines brokers licensed as such by this state or when procured directly by an insured from a nonadmitted insurer: wet marine and transportation insurance; insurance of subjects located, resident or to be performed wholly outside of this state, or on vehicles or aircraft owned and principally garaged outside this state; insurance of property and operations of railroads engaged in interstate commerce; insurance of aircraft of common carriers or cargo of such aircraft, or against liability other than employer’s liability arising out of the ownership, maintenance or user of such aircraft; insurance of automobile bodily injury and property damage liability risks when written in Mexican insurers and covering in Mexico and not in the United States of America.

How do I correct a filing that was made incorrectly?

Answer: NSLA is unable to amend any filings made by a broker. It is the broker’s responsibility to file an amended report to make a correction to a filing already registered.

How can I print a confirmation to provide verification of filing?

Answer: After a filing has been submitted to NSLA and we have registered the filing, you may print a confirmation for your records or for another entity requesting a copy of confirmation of filing.

What is a surplus line broker’s certificate?

Answer: 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” certificate. A surplus line broker’s certificate is a document evidencing the placement of insurance with an eligible nonadmitted insurer.

What is a binder or cover note and can I file a report using a binder in lieu of the declaration page?

Answer: A binder is a temporary insurance contract providing coverage until the insurer either issues, or declines to issue, a formal policy. The binder includes the usual terms of the type of policy bound. Binders are sometimes called “cover notes” especially by alien insurers. You may use a binder or cover note to file a report if a policy has not been received within 60 days of the effective date. We prefer you wait for the actual policy. If a policy premium is different from the premium originally submitted on the binder, the broker must file an amended report. It is not necessary to file a policy if a binder was filed and contained all the required information.

What is a master policy and the filing requirements?

Answer: A master policy is a single contract issued to a group, such as an association and filed on a group basis. This type of coverage is typically issued for an indefinite term, so there is no expiration date. Group members receive certificates as evidence of membership summarizing benefits provided and are considered third party beneficiaries of the master policy. If the master policy is filed with a master policy number and one group name, a report would be required on the inception date and each anniversary of the inception date. If the individual insured is being filed separately under the certificate name and number, it would be treated as individual policies and a report would be required for each certificate.

Are Risk Purchasing Groups (RPG) handled differently from other placements?

Answer: Risk Purchasing Groups placements are not treated any differently from other surplus lines placements.

Does Nevada maintain an export list?

Answer: The Nevada Division of Insurance maintains the export list. The export list contains the line and class of business that can be exported to the surplus lines market without the broker having to conduct a diligent search of the admitted market. All policies are assigned a code to provide the Nevada Division of Insurance with a more accurate scope of the broad range of businesses that utilize the surplus line market.

Does Nevada have an industrial insured exemption provision?

Answer: Refer to NRS 680A.070

Disclaimer: No action or inaction of Nevada Surplus Lines Association shall relieve any member and/or broker of responsibility to comply with the law. Each member shall hold harmless the Association, its Board of Directors, Executive Director and employees from any liability that may arise by reason of any member’s failure to comply with any law. NSLA makes reasonable efforts to track laws and regulations of interest to its membership but does not warrant the accuracy of any version of laws, regulations, forms or materials posted on this website. This website is not intended to offer legal advice.