THE SURPLUS LINE ASSOCIATION OF CALIFORNIA
FILING REQUIREMENTS FOR THE SURPLUS LINE
ASSOCIATION OF CALIFORNIA
CREATING A BATCH
Table of Contents
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Creating a Batch……………………………
Batch Coversheet Contents……………….
Batch Coversheet Example……………….
Documents Required for Filings…………..
Order of Documents within a Batch………
Policy Content………………………………
SL-1 Form……………………………………
SL-1 Instructions…………………………...
SL-2 Form…………………………………...
SL-2 Instructions…………………………...
Exceptions to Diligent Search……………..
Batch Submission…………………………..
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Creating a Batch
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The Surplus Line Association of California (SLA) requires all
transactions be submitted within a batch. New and renewal
policy should be submitted within 60 days of the policy
effective date.

The batch must contain:
◦ Batch Coversheet (for paper filings)
◦ Copy of the Declarations Page, Certificate, Cover Note or Binder
◦ Completed copy of the SL-1
◦ Lloyd’s Syndicate List, if applicable
◦ Completed copy of the SL-2, if applicable
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Batch Coversheet Contents (for paper filings)
Filings should be submitted in batches containing a maximum of 75 policies
and/or endorsements for easier reconciliation. Batches must be accompanied
by a batch coversheet which includes:
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Assigned SLA broker number (especially for brokerages with multiple branches)
Exempt Commercial Purchaser/Commercial Insured checkbox
Insured’s name
Transaction type
Policy number
Premium amount (including taxable fees)
Stamping fee
Surplus line state tax
Invoice date
California % premium allocation (for multi-state risks)—even if 100% of the premium
is to be filed in California, the CDI wants to track what the % of premium would have
been filed in California pre NRRA.
Total amount of items and premium
*Including the name and contact information for the person responsible for creating the
batch would enable SLA correspondence to be directed to the appropriate party.
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• CI/ECP refers to the AB315 definition of commercial insured or the
NRRA definition of exempt commercial purchaser. Refer to California
Insurance Code section 1760.1. The checklist is on the following slide.
• %CA refers to the percentage of premium allocated to California if there
was no home state rule.
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Documents Required For Filings
For paper, emailed or batch image upload filings only:

Batch coversheet
For all filings:
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New and renewal transactions must include:
◦
◦
◦
◦
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qualifies under AB315’s definition of commercial insured)
Extension endorsements extending the policy term for more than 90 days in the
aggregate during any 12-month period must include:
◦
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Copy of the Declaration Page, Certificate, Cover Note or Binder
Lloyd’s syndicate list (if applicable)
Completed copy of the SL-1
Completed copy of the SL-2 (unless the coverage is on the current export list or the insured
Copy of the extension endorsement
Lloyd’s syndicate list (if applicable)
Completed copy of the SL-1
Completed copy of the SL-2 (unless the coverage is on the current export list or the insured
qualifies under AB315’s definition of commercial insured)
Endorsements and cancellations must include:
◦ Copy of endorsement
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Order of Documents within Batch
DILIGENT SEARCH REPORT
SL-2 Form
1.
(Please Refer to the Instructions on Page 3 of This Form)
BRYAN SMITH
hereby submits that he/she is:
(Full Name of the Individual)
(A) Duly licensed under California Department of Insurance license number
;
OR (B) Duly licensed and authorized to act as an endorsee on the organizational license of
AAAA Insurance Brokers, Inc.
, California Department of Insurance license number 0999999
;
Policy Number: XF10003
5,125.00
California
Premium:
and (C) that he/she or said organizational licensee was engaged
by the insured
named
herein, or the insured's broker, to obtain
(Name of Organization)
SL-1 Form
insurance as described in this report;
CONFIDENTIAL REPORT OF SURPLUS LINE PLACEMENT
and (D) is the licensee who performed or supervised this diligent search.
Please refer to the instructions on Page 2, and the attached current California Export List for assistance in completing this form.
Please check ONE 2.
box only:(A ) Name of Insured
The following information, accompanied by a copy of the declarations page or certificate or binder, is submitted for an
(B) Address of Insured
insurance coverage or risk listed on the current California Department of Insurance Export List. (California Insurance Code
(Street and Number)
Section 1763.1)
Lloyd’s
(City)
(State)
(Zip Code)
The following information, accompanied by a copy of the declarations page or certificate or binder, and a fully executed
(C ) Description
Syndicate
List
copy
of the diligent search report
(SL-2 Form),of
is Risk
submitted in accordance with California Insurance Code Section 1763(a).
(e.g. Laundromat, liquor store, …NOT TYPE OF COVERAGE)
■
(D) Location of Risk
1.
Declarations
Page
hereby submits that he/she is:
(A)
(City)
a duly licensed surplus line broker, license number
(B)
a transactor on the surplus line license of
(C)
Cover Sheet
RISK DESCRIPTION
(Zip Code)
(Enter Appropriate Code Number from Pg. 3)
(B)
YES
NO
Does the coverage that you have placed include, in whole or in part, the limits of coverage provided under
the California Automobile Assigned Risk Plan (CAARP)? (CHECK ONE) YES
NO
(A)
Name of Insured
(B)
Address of Insured
(C)
(C)
Description of the Risk
(D)
10700(x)
Location of the
Risk of the California Insurance Code? (CHECK ONE)
(Street and Number)
If YES, has this risk been submitted to and found to be ineligible by CAARP?
(Street and Number)
(CHECK ONE) YES
NO
If your(City)
answer is NO, then this coverage cannot
be placed with a non-admitted
insurer. (See Insurance Code section 1763.5)
(State)
(Zip Code)
5.
(E)
(State)
(Name of Organization)
and,
(License
Number)
3.
If Private Passenger Automobile Liability Insurance is identified on line 2(E), complete the following:
that he/she or(A)
said organizational
licensee
was engaged
by the
insured,
or the
insured's
broker,
Does the insured
qualify
as a "Good
Driver"
under
Section
1861.025
ofnamed
the California Insurance Code?
herein, to obtain insurance against certain risk as described in this report.
4.
3.
; or,
(E) Type of Insurance coverage
(CHECK ONE)
2.
(Street and Number)
(e.g. Laundromat, Liquor Store, NOT TYPE OF COVERAGE)
If Health Insurance
is identified on line 2(E), does the insured qualify as a "Small Employer" under Section
YES
NO
(City)
(State)
If this insurance was placed pursuant
to Section 125 et seq. of(Zip
theCode)
California Insurance Code governing transactions
with risk purchasing groups authorized by the Federal Liability Risk Retention Act of 1986, complete the
following: (Coverage Codes listed on Page Two; Export List Codes listed on Export List)
(A) Provide the name and address of the purchasing group of which the insured is a member:
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Export List Code OR Coverage Code
PLACEMENT DESCRIPTION
List Nonadmitted Insurer(s) Underwriting This Policy with % of Premium. (Include an attachment if additional space is
needed or attach a line slip) If GAP provision applies, please include GAP Exemption Form-Attachment.
Policy Content
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California Insurance Code Section 381 list the required
contents on the policy:
◦ Parties between whom the contract is made, insured and insurer
◦ Property or life insured
◦ Interest of the insured in property insured, if he is not the absolute
owner
◦ Risks insured against
◦ Policy period
◦ Premium
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SL-1: Confidential Report of Surplus Line Placement
Policy number
California premium plus taxable
fees
Full name of transactor who
placed the risk
Individual license number,
or name of business entity and
entity’s license number
Name of insured as stated on the
policy declaration page
Insured address
Risk description, not type of coverage
Physical location of risk, not
PO Box
Coverage or export code from
instructions
Name of nonadmitted insurer as
stated on the policy declaration page
Signature of licensee named on line
1; electronic facsimile is acceptable
Percentage of premium allocated
for each nonadmitted insurer
Date of signature
This form is available on the SLA website:
http://www.slacal.org/docs/default-source/general-contentdocuments/Filing-Forms/sl-1-form-printable.pdf?sfvrsn=4
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SL-1 Instructions
Confidential Report
Page 2
INSTRUCTIONS
WHAT MUST ACCOMPANY THE CONFIDENTIAL REPORT OF PLACEMENT
(A) If the insurance coverage or risk is currently listed on the California Export List, this Report must be
accompanied by a copy of the declarations page or certificate or binder. (B) If the insurance coverage or
risk is not listed on the California Export List, this Report must be accompanied by the declarations page
or certificate or binder, and a fully completed Diligent Search Report (SL-2) Form). (California Insurance
Code Section 1763(a))
Note: A copy of the current California Export List may be obtained from the SLA by phone at
(415) 434-4900, or by fax to (415) 434-3716.
WHEN TO FILE: This report must be filed by the surplus line broker within 60 days of placing the
insurance with a nonadmitted insurer. (California Insurance Code Section 1763(a))
WHERE TO FILE: This Report must be submitted to The Surplus Line Association of California as
designee for the California Insurance Commissioner. Mailing address is as follows: 50 California Street,
18th Floor, San Francisco CA 94111.
LOWER RATE FILINGS: This Report may not be used to file a risk placed with a nonadmitted insurer
when such insurance is procured at a lower rate of premium or lower premium than the lowest rate or
premium available from an admitted insurer. Please contact the Department of Insurance or The Surplus
Line Association of California for information regarding the procedures applicable to such “lower rate”
filings.
CODE – TYPE OF INSURANCE
050
051
100
101
150
151
200
201
300
350
351
400
401
402
403
404
414
450
500
501
502
Auto Liability – Private
Auto Liability – Commercial
Auto Physical Damage – Private
Auto Physical Damage – Commercial
Crime
Crime – Kidnap & Ransom
Combined Auto Liability & P.D. – Private
Combined Auto Liability & P.D. – Comm.
Excess Liability (Incl. Umbrella)
Fidelity & Surety Bonds – Bonds
Fidelity & Surety Bonds – Fidelity
Fire – Singe Family Dwelling
Fire – Commercial
Fire – Homeowners
Fire – Homeowners Multiple Peril
Fire – Farm Owners Multiple Peril
Residential Earthquake
Inland Marine
General Liability
Gen. Liability – Pollution Legal Liability
Gen. Liability – Product Tampering
CODE – TYPE OF INSURANCE
510 Aviation
550 Errors & Omissions – All Others
551 Errors & Omissions – Dir. & Off.
600 Malpractice – All Other
606 Malpractice – Hospitals
650 Miscellaneous
651 Miscellaneous – Glass
652 Miscellaneous – Boiler & Machinery
653 Miscellaneous – Nuclear Risks
655 Miscellaneous – Political Risks**
700 Accident
701 Accident – Disability Income
702 Accident – Group Health Insurance
703 Accident – Individual Health Ins.
800 Garage Liability
980 Excess Workers Compensation
990 Commercial Property – All Risk
994 Commercial Property – Special Multi-Peril
996 Commercial Property – DIC***
997 Commercial Property – Earthquake***
998 Commercial Property – Terrorism
999 Commercial Property – Special Multi-Peril with Terrorism
Coverage in bold font are additions to the Confidential Report of Placement (rev. 01/97) and Diligent Search Report
(rev. 3/95) coverage list.
**Coverage is currently on Export List
***Coverage is currently on Export List under code 406
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SL-2:Diligent Search Report
Full name of licensee who
performed or supervised
diligent search
Individual license number, or
name of business entity and
entity’s license number
Name of insured as stated on the
policy declaration page
Insured address
Risk description, not type of coverage
Physical location of risk, not PO Box
Coverage or export code from
instructions
Only complete if your policy
is for private passenger auto
liability
Only complete if your policy
is for health insurance
Only complete if the insurance
is placed with a risk
purchasing group
How did you determine that at least
three admitted carriers would not
accept the risk?
This form is available on the SLA website:
http://www.slacal.org/docs/default-source/general-contentdocuments/Filing-Forms/sl2-printable.pdf?sfvrsn=2
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SL-2:Diligent Search Report (continued)
Name of unlicensed person
who performed the search
under supervision
If checked YES, please
complete 7(B)
If checked NO, skip to 8(A)
If YES was checked in 8(A),
please answer 8(c); if NO was
checked, please answer 8(B)
Signature of licensee
named on line 1; electronic
facsimile is acceptable
Date of signature
This form is available on the SLA website:
http://www.slacal.org/docs/default-source/general-contentdocuments/Filing-Forms/sl2-printable.pdf?sfvrsn=2
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SL-2 Instructions
INSTRUCTIONS
SECTION 1: Please provide the full name of the licensed individual who performed or supervised the diligent search. If the
search was performed under the individual’s license number, enter his/her license number in section (A) or if the individual
was authorized as an endorsee under an organizational license, enter the name of the organization and its license number in
section (B).
SECTION 6: Please provide a complete response on section (A). Note: The Insurance Commissioner or his designee may
require the surplus line broker to conduct a further or additional search among admitted insurers for similar placements in the
future. [California Insurance Code Section 1763(b)] An incomplete response may unnecessarily result in a request for a further
search to be conducted. If the individual named on line 1 did not perform the diligent search, please provide the full name of
the individual who performed the search on section (B).
SECTION 7(B): To avoid mis-identification among insurers with similar names, please provide the complete name of the
admitted insurer as listed in the CDI Official Publication of Admitted Companies.
Insurer group names, such as Cigna Group, Chubb Group, California Ins. Group, Hartford Group, etc., are acceptable if the
person performing the search verifies that the representative of the group, who declines the risk, does in fact represent an
admitted insurer in the group that actually writes the particular type of insurance being sought.
IMPORTANT: Persons who are licensed only as an agent may only submit a risk to admitted insurers that have appointed
them as their agent. Agents are not authorized to offer a risk to admitted insurers for which they are not appointed agents. A
search which is limited to only those companies that have appointed the agent may not necessarily constitute a diligent search
of the admitted market.
WHAT TO FILE: This report must be filed as an attachment to the Report of Placement. (CDI Form SL-1).
WHERE TO FILE: The SL-1 and this report are to be filed by the surplus line broker with The Surplus Line Association of
California within 60 days of placement of coverage with non-admitted insurer(s).
MULTIPLE LICENSEES CONDUCTING SEARCH: If two or more licensees conduct a diligent search of admitted
insurers, then each licensee must complete a diligent search report (CDI Form SL-2). All such reports should be attached to
the SL-1.
CODE TYPE OF INSURANCE
050
051
100
101
150
151
200
201
300
350
351
400
401
402
403
404
414
450
500
501
502
CODE TYPE OF INSURANCE
Auto Liability-Private
Auto Liability-Commercial
Auto Physical Damage-Private
Auto Physical Damage-Commercial
Crime
Crime-Kidnap & Ransom
Combined Auto Liability & P.D.-Private
Combined Auto Liability & P.D.-Comm.
Excess Liability (Incl. Umbrella)
Fidelity Surety & Bonds-Bonds
Fidelity Surety & Bonds-Fidelity
Fire-Single Family Dwelling, Duplex
Fire-Commercial
Fire-Homeowners
Fire-Homeowners Multiple Peril
Fire-Farm Owners Multiple Peril
Residential Earthquake
Inland Marine
General Liability
Gen. Liability-Pollution Legal Liability
General Liability-Product Tampering
510
Aviation
550
Errors & Omissions-All Others
551
Errors & Omission-Directors & Officers
600
Malpractice-All Other
606
Malpractice-Hospitals
650
Miscellaneous
651
Miscellaneous-Glass
652
Miscellaneous-Boiler & Machinery
653
Miscellaneous-Nuclear Risks
655
Miscellaneous-Political Risks
700
Accident
701
Accident-Disability Income
702
Accident-Group Health Ins.
703
Accident-Ind. Health Ins.
800
Garage Liability
980
Excess Workers Compensation
990
Commercial Property-All Risk
994
Commercial Property-Special Multi-Peril
996
Commercial Property-DIC
997
Commercial Property-Earthquake
998
Commercial Property-Terrorism
999
Commercial Property-Special Multi-Peril w/Terrorism
(This list does not include those coverages on the export list. An updated export coverage list is published every year by the
California Dept. of Insurance.)
SL-2 (Revised 06/2004)
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Exceptions to Diligent Search
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There are two exceptions to the diligent search requirement:
◦ If the coverage is listed on the current California Export List
or
◦ If the insured qualifies under AB315’s definition of a “commercial
insured”
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Export List

On January 1, 1996, Section 1763.1 regarding the Export list
was added to the California Insurance Code.

Placements with coverage on the Export List are exempt from
a Diligent Search Report because a public hearing
determined that there was not a reasonable or adequate
insurance market among admitted insurers.
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The latest copy of the Export List is shown on the next page.
If the coverage is not on the export list, then a Diligent Search
Report must be completed.
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Commercial Insured/
Exempt Commercial Purchaser
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The surplus line broker does not need to perform a diligent
search if the insured qualifies as an Exempt Commercial
Purchaser (California uses the term “Commercial Insured”)

The surplus line broker procuring or placing the surplus line
insurance must have disclosed in writing to the commercial
insured that such insurance may or may not be available from
the admitted market, which may provide greater protection
with more regulatory oversight

The commercial insured must have subsequently requested
in writing that the surplus line broker procure or place
surplus insurance from a nonadmitted insurer.
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CALIFORNIA COMMERCIAL INSURED/EXEMPT COMMERCIAL PURCHASER
SAMPLE CHECKLIST
Commercial Insured/Exempt Commercial Purchaser Qualifications
Checklist
Under the NRRA, the surplus line broker does not need to perform a diligent search if the
insured qualifies as an Exempt Commercial Purchaser. To determine whether the insured
meets the NRRA definition of an Exempt Commercial Purchaser, please review the following
checklist. If the insured meets all three requirements, a diligent search does not need to be
performed.
Requirement 1: Employs or retains a qualified risk manager (refer to definition below)
Requirement 2: Paid an aggregate nationwide property & casualty premium of at least
$100,000 in the immediately preceding 12 months.
Requirement 3: Meets one of the following:
Possesses a net worth in excess of $20 million, or
Generates annual revenues over $50 million, or
Employs more than 500 full time employees per individual insured, or is a member of
an affiliated group employing more than 1,000 employees in the aggregate, or
Is a non-profit or public entity generating annual budget over $30 million, or
Is a municipality with a population in excess of 50,000 persons.
NRRA Qualified Risk Manager Definition
Requirement 3:
A bachelor's degree or higher from an accredited college or university in risk
management, business administration, finance, economics, or any other field
determined by a State insurance commissioner or other State regulatory official or
entity to demonstrate minimum competence in risk management; and
three years of experience in risk financing, claims administration, loss prevention,
risk and insurance analysis, or purchasing commercial lines of insurance, or
Holds one of the designations below:
CPCU or ARM or CRM or RF or any other designation, certification, of license
determined by a State Insurance commissioner or other State regulatory
official or entity to demonstrate minimum competence in risk management,
or
Has seven years of experience in risk financing, claims administration, loss prevention,
risk and insurance coverage analysis, or purchasing commercial lines of insurance; and
any one of the following designations: CPCU or ARM or CRM or RF or any other
designation, certification, or license determined by a State insurance commissioner or
other State insurance regulatory official or entity to demonstrate minimum
competence in risk management, or
Under the NRRA, a Qualified Risk Manager must meet all three of the following requirements:
Requirement 1: Must be an employee of, or a third party consultant retained by, a commercial
policyholder, and
Requirement 2: Provides skilled services in loss prevention, loss reduction, or risk and
insurance coverage analysis, and purchase of insurance, and
Has at least ten years of experience in risk financing, claims administration, loss
prevention, risk and insurance coverage analysis, or purchasing commercial lines of
insurance, or
Has a graduate degree from an accredited college or university in risk management,
business administration, finance, economics, or any other field determined by a State
insurance commissioner or other State regulatory official or entity to demonstrate
minimum competence in risk management.
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Batch Submission

Once the batch is in order, submit the documents to the SLA.
The SLA currently accepts batches through the following
submissions:
◦ Email to filingbatches@slacal.org
◦ Mail through the USPS to:
The Surplus Line Association of CA
50 California Street, 18th Floor
San Francisco, CA 94111
◦ Upload through the SLIP Portal at www.slip.slacal.org
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