State Notices
Some of the insurance products offered through LossPay are provided by surplus lines carriers. These carriers are approved to do business but are not licensed in the same way as standard insurance companies. Because of this, their policies are not protected by state guaranty funds if the company were ever to become insolvent.
Every state has its own rules about what must be disclosed when you buy surplus lines coverage. To make things clear, we’ve listed each state’s required notice below. Please read the notice for your state carefully so you understand how surplus lines insurance is regulated where you live.
State-Specific Notices (Alphabetical)
Arizona (AZ)
“This policy is issued by a nonadmitted insurer that is not subject to the financial conditions or regulation of the Arizona Department of Insurance and Financial Institutions. This policy is not protected by the Arizona Property and Casualty Insurance Guaranty Fund.”
California (CA)
“This insurance contract is issued by a nonadmitted insurer that is not licensed by the State of California. The insurer is not subject to the financial solvency regulation and enforcement that apply to California licensed insurers. This policy is not protected by the California Insurance Guarantee Association.”
Colorado (CO)
“This insurance contract is issued by a nonadmitted insurer not licensed in Colorado. The insurer is not subject to regulation by the Colorado Division of Insurance, and this policy is not covered by the Colorado Insurance Guaranty Association.”
Delaware (DE)
“This insurance contract is issued pursuant to the Delaware Insurance Laws by an insurer neither licensed by nor under the jurisdiction of the Delaware Insurance Department. This insurer does not participate in insurance guaranty funds created by state law. In the event of the insolvency of the surplus lines insurer, losses will not be paid by the Delaware Insurance Guaranty Association.”
Florida (FL)
“This insurance is issued pursuant to the Florida Surplus Lines Law. Persons insured by surplus lines carriers do not have the protection of the Florida Insurance Guaranty Act to the extent of any right of recovery for the obligation of an insolvent unlicensed insurer. Additionally, surplus lines insurers’ policy rates and forms are not approved by any Florida regulatory agency.”
Georgia (GA)
“The insurance company with which this coverage has been placed is not licensed in this state but is an eligible surplus lines insurer. The company is not regulated by the Georgia Insurance Department and is not protected by any state insolvency or guaranty fund.”
Louisiana (LA)
“This insurance contract is issued by a nonadmitted insurer that is not licensed by the State of Louisiana. The insurer is not subject to the Louisiana Insurance Guaranty Association, and policyholders are therefore not protected by the Association in the event of insolvency of the insurer.”
Maryland (MD)
“This insurance contract is issued by a surplus lines insurer not licensed in Maryland. The insurer is not subject to regulation by the Maryland Insurance Administration. This policy is not protected by the Maryland Property and Casualty Insurance Guaranty Corporation.”
Massachusetts (MA)
“This insurance contract is issued by a surplus lines insurer not licensed in Massachusetts. The insurer is not subject to supervision by the Massachusetts Division of Insurance. This policy is not protected by the Massachusetts Insurers Insolvency Fund.”
Michigan (MI)
“This insurance contract is issued by a surplus lines insurer not licensed in Michigan. The insurer is not subject to supervision by the Michigan Department of Insurance and Financial Services. This policy is not protected by the Michigan Property and Casualty Guaranty Association.”
Nevada (NV)
“This insurance contract is issued by a nonadmitted insurer not licensed by the State of Nevada. The insurer does not participate in any Nevada insurance guaranty fund, and the policy is not protected by such funds.”
New York (NY)
“This insurance contract is issued by a surplus lines insurer not licensed in New York. The insurer is not subject to supervision by the New York State Department of Financial Services. This policy is not protected by the New York State Security Fund.”
North Carolina (NC)
“This insurance contract is issued by a nonadmitted company that is not licensed by the State of North Carolina. The insurer is not subject to the supervision of the North Carolina Department of Insurance, and in case of insolvency, the policy is not protected by the North Carolina Insurance Guaranty Association.”
Texas (TX)
“This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as surplus line coverage under the Texas insurance statutes. The Texas Department of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and the insurer is not a member of the property and casualty insurance guaranty association created under Chapter 462, Insurance Code.”
Virginia (VA)
“This insurance contract is issued by a nonadmitted insurer not licensed by the State Corporation Commission of Virginia. The insurer is not subject to Virginia’s insurance laws and regulations, and this policy is not protected by the Virginia Property and Casualty Insurance Guaranty Association.”
Washington (WA)
“This contract of insurance is issued by a nonadmitted insurer that is not licensed by the State of Washington. The insurer is not subject to the regulation of the Washington Office of the Insurance Commissioner, and this policy is not protected by the Washington Insurance Guaranty Association.”
