Georgia Surplus Lines cheat sheet

Surplus lines insurance in Georgia is placed under O.C.G.A. Title 33, Chapter 5, Article 5; the Commissioner of Insurance (Office of Commissioner of Insurance and Safety Fire) administers the article and adopts rules thereunder.

A surplus lines broker license is issued only to a currently licensed Georgia property and casualty agent or broker; the license is a specialty authorization layered on the underlying resident or nonresident P&C license, not a standalone license.

Nonresident surplus lines brokers may be licensed under reciprocity when the home state grants equivalent Georgia privileges; the nonresident must hold a comparable surplus lines license in the home state and remain in good standing there.

Georgia operates a broker-centric surplus lines system: the surplus lines broker is the licensed intermediary who transacts with the eligible nonadmitted insurer and is responsible for the placement, affidavits, and premium tax reporting.

Diligent search rule: the surplus lines broker must first attempt to place the coverage with authorized insurers; if coverage or a needed limit is unavailable, the file must document the declinations or the specific reason authorized markets cannot write the risk.

Eligibility of the insurer: the nonadmitted insurer must appear on the Commissioner's list of eligible surplus lines insurers (or qualify under an approved trust fund or alien insurer provision) before the broker may place business with it.

Placement prohibition: surplus lines may not be used to procure coverage for the sole purpose of securing a lower premium, to evade Georgia rate or form requirements, or to insure a risk that an authorized insurer is willing to write on the same terms.

Premium tax and reporting: the surplus lines broker collects and remits the surplus lines premium tax at the rate set by statute and files periodic tax returns and annual affidavits/reports with the Commissioner on the prescribed forms and deadlines.

Recordkeeping and disclosure: the broker must keep a separate surplus lines account record for each placement, disclose the nonadmitted status of the insurer to the insured in writing, and retain search, placement, and tax records for the period required by statute and rule.

License term and renewal: the surplus lines broker authority runs with the underlying agent/broker license cycle, renews on the same schedule, and lapses if the underlying P&C license is not renewed or is revoked, suspended, or lapsed.

Continuing education: a Georgia surplus lines broker must satisfy the CE requirement tied to the underlying property and casualty license, including any surplus lines-specific hours the Commissioner prescribes by rule.

Grounds for discipline: placing business with an ineligible insurer, failing to perform the diligent search, misrepresenting the insurer's admitted status, commingling surplus lines premiums, or failing to remit premium tax are each grounds for suspension or revocation.

Commissioner's authority: the Commissioner may examine surplus lines brokers, require reports, investigate complaints, impose fines, and revoke or suspend the surplus lines license after notice and hearing under Georgia administrative procedure.

Exemption from rate and form filing: surplus lines placements are not subject to prior approval of rates or forms, but the broker may not use that exemption to place business that an authorized insurer would write.

Coverage limitations: surplus lines insurers may not write certain lines reserved to authorized insurers or residual market mechanisms, and the broker must verify the risk is not one that must be placed through an assigned risk plan or the Georgia residual market.

Unlicensed-insurer prohibition: placing Georgia risks with a nonadmitted insurer that is not on the eligible list constitutes an unauthorized insurance transaction and exposes both the broker and the insured to statutory penalties.

Surplus lines premium tax rate: the rate and due dates are fixed by Georgia statute and regulation; the broker is personally liable for collection and remittance, and the tax is generally not the insured's separate obligation to file.

Business entity licensing: a surplus lines agency must hold the appropriate Georgia agency license and designate a licensed surplus lines broker as the responsible producer for the entity's surplus lines transactions.

Definition: a surplus lines broker is a licensed property and casualty producer authorized to place insurance with eligible nonadmitted insurers when authorized insurers decline the risk or cannot provide the required coverage.

Definition: an eligible surplus lines insurer is a nonadmitted insurer that meets Georgia's statutory eligibility standards and appears on the Commissioner's approved list.

Rule: the diligent search must be documented before placement, showing the authorized markets approached and the reason each declined or could not write the risk.

Rule: the surplus lines broker must disclose to the insured, in writing, that the insurer is not admitted in Georgia and is not protected by the Georgia guaranty fund.

Rule: premiums for surplus lines placements must be handled in a manner that keeps them identifiable and separate from other funds, and must be remitted to the insurer or its representative as required.

Rule: the surplus lines broker files the annual affidavit or report attesting to placements, diligent search compliance, and tax remittance on the Commissioner's form.

Rule: a surplus lines broker may not countersign or place business for a producer who is not licensed in Georgia for the applicable line.

Rule: if the insured later obtains authorized coverage, the surplus lines placement must be terminated or replaced consistent with the policy terms and Georgia requirements.

Penalty rule: violations of the surplus lines article are subject to administrative fines, license suspension or revocation, and, where applicable, criminal penalties for unauthorized insurance activity.

Licensing prerequisite: active Georgia property and casualty agent or broker license in good standing is required before the surplus lines authorization is granted.

Examination: the candidate must pass the Georgia surplus lines examination or qualify for a waiver recognized by the Commissioner, in addition to holding the underlying P&C license.

Application: the surplus lines license application is filed with the Commissioner, with the required fees, background information, and any certifications the Department prescribes.

Nonresident reciprocity: a nonresident holding a surplus lines license in the home state may obtain Georgia authority if the home state extends reciprocal privileges to Georgia licensees.

Change of address or name: the broker must notify the Commissioner within the period set by rule of any change in business address, name, or designated responsible producer.

Appointment and termination: surplus lines authority is tied to the producer's appointments and the agency relationship; termination of appointment must be reported as required.

Fiduciary duty: surplus lines premiums held by the broker are trust funds; commingling with operating funds or failure to remit to the insurer is a violation.

Advertising and solicitation: a surplus lines broker may not advertise or solicit using an unauthorized insurer's name in a way that implies the insurer is admitted in Georgia.

Continuing obligation: the broker must monitor the eligibility status of nonadmitted insurers used and must not continue placements with an insurer removed from the eligible list.

Diligent search documentation: the file should identify the authorized insurers contacted, the date of each contact, the coverage or limit requested, and the specific reason each declined or could not write the risk.

Eligibility verification: before binding, the broker must confirm the nonadmitted insurer's current status on the Commissioner's eligible list and retain evidence of that verification.

Disclosure content: the written notice to the insured should state that the insurer is nonadmitted, that the Georgia guaranty fund does not apply, and that the insured should confirm the insurer's financial standing.

Premium tax mechanics: the broker calculates the tax on the surplus lines premium at the statutory rate, collects it from the insured or as part of the premium, and remits it with the required return.

Reporting frequency: periodic tax returns and the annual surplus lines report are filed on the Commissioner's schedule; late filing or underpayment can trigger penalties and interest.

Record retention: search evidence, placement documents, disclosure acknowledgments, and tax records must be kept for the statutory retention period and made available to the Commissioner on request.

Examination cooperation: the broker must produce records and respond to Commissioner inquiries during market conduct or financial examinations of surplus lines activity.

Corrective action: if a placement is later found noncompliant, the broker must cooperate in transferring or cancelling coverage and in correcting tax and reporting filings.

Supervision: the designated responsible licensed broker is accountable for the agency's surplus lines compliance, including training staff and reviewing placements.

Scope of article: the Georgia surplus lines article governs placement of insurance with nonadmitted insurers and does not authorize nonadmitted insurers to transact business generally in the state.

Surplus lines defined: insurance placed with an eligible nonadmitted insurer after a documented diligent search shows authorized insurers will not write the risk or the required coverage.

Eligible insurer defined: a nonadmitted insurer that satisfies Georgia's financial, trust fund, and reporting standards and is listed by the Commissioner as eligible for surplus lines placements.

Diligent search defined: the documented effort to obtain coverage from authorized insurers before placing with a nonadmitted insurer.

Surplus lines broker defined: a licensed Georgia P&C producer with surplus lines authority who places, services, and reports surplus lines business.

Premium tax defined: the tax imposed on surplus lines premiums, collected and remitted by the surplus lines broker to the Commissioner.

Unauthorized insurance defined: transacting insurance in Georgia through an insurer not authorized or eligible, or through an unlicensed producer, subject to statutory penalties.

Guaranty fund exclusion: claims against nonadmitted insurers placed as surplus lines are generally not covered by the Georgia guaranty association, which is why written disclosure is required.

Commissioner's eligible list: the official roster the Commissioner maintains of nonadmitted insurers approved for surplus lines placements in Georgia.

Placement decision sequence: confirm the risk and line are eligible for surplus lines, perform and document the diligent search, verify the insurer's eligibility, bind coverage, deliver written nonadmitted disclosure, then report and remit tax.

If an authorized insurer offers the same coverage on comparable terms, the risk must be placed in the authorized market and not in surplus lines.

If the nonadmitted insurer is not on the eligible list, the broker must not bind and must seek an eligible insurer or an authorized market.

If the underlying P&C license lapses, surplus lines authority lapses with it and no new surplus lines placements may be made until restored.

If the insured is a sophisticated commercial buyer, the broker still must complete the diligent search, eligibility check, disclosure, and tax remittance; no exemption from those core duties exists.

If a policy is cancelled or endorsement reduces premium, the broker must adjust the premium tax calculation and reflect the change in the next return.

If the Commissioner removes an insurer from the eligible list, existing policies may continue as permitted by rule but new and renewal placements must use an eligible insurer.

If a nonresident broker's home state withdraws reciprocity, Georgia surplus lines authority may be terminated and placements must cease until a new basis for licensure exists.

If records are requested in an examination, the broker must produce the diligent search file, disclosure acknowledgment, and tax filings for each placement.

Statutory anchor: O.C.G.A. Title 33, Chapter 5, Article 5 contains Georgia's surplus lines provisions; the Commissioner's rules implement licensing, diligent search, eligibility, and premium tax.

Regulator: the Georgia Office of Commissioner of Insurance and Safety Fire licenses surplus lines brokers, maintains the eligible insurer list, and enforces the article.

License type: surplus lines authority is an add-on to a Georgia property and casualty producer license, not a separate stand-alone license.

Reciprocity: nonresident surplus lines licensing depends on the home state granting equivalent privileges to Georgia licensees.

Diligent search: documented effort with authorized insurers is a precondition to any surplus lines placement.

Eligible insurer list: placements are limited to nonadmitted insurers the Commissioner has approved as eligible.

Premium tax: the surplus lines broker collects and remits the statutory premium tax and files the required returns.

Disclosure: written notice that the insurer is nonadmitted and that guaranty fund protection does not apply is required.

Enforcement: violations carry administrative fines, license suspension or revocation, and possible criminal exposure for unauthorized insurance.

Diligent search file checklist: risk description, coverage and limits requested, authorized insurers contacted with dates, declination reasons, and the broker's signature attesting to the search.

Eligibility file checklist: evidence of the nonadmitted insurer's listing on the Commissioner's eligible list as of the binding date.

Disclosure file checklist: signed or acknowledged written notice to the insured stating nonadmitted status and guaranty fund exclusion.

Tax file checklist: premium basis, tax rate applied, amount collected, remittance date, and confirmation of the return filed.

Policy file checklist: declarations, binder, endorsements, cancellation notices, and any return premium calculations affecting tax.

Licensing file checklist: current P&C license, surplus lines authorization, appointments, CE completion, and entity license if applicable.

Nonresident file checklist: home state license and surplus lines authority, reciprocity evidence, and home state good standing.

Examination readiness: organize files by placement date and insured so the Commissioner can trace search, eligibility, disclosure, and tax for each transaction.

Corrective file: document any remediation of a noncompliant placement, including cancellation, replacement coverage, and amended tax filings.

Prohibited act: placing a Georgia risk with a nonadmitted insurer that is not on the Commissioner's eligible list.

Prohibited act: skipping or fabricating the diligent search to route business to a nonadmitted insurer for a lower premium or higher commission.

Prohibited act: failing to give the insured written notice that the insurer is nonadmitted and not covered by the Georgia guaranty fund.

Prohibited act: commingling surplus lines premiums with the broker's operating funds or failing to remit premiums to the insurer.

Prohibited act: collecting surplus lines premium tax and failing to remit it or filing false or incomplete tax returns.

Prohibited act: placing business through or on behalf of an unlicensed producer or an unlicensed agency.

Prohibited act: continuing to place new or renewal business with an insurer the Commissioner has removed from the eligible list.

Prohibited act: misrepresenting an insurer's admitted status in advertising, quotes, or policy documents.

Prohibited act: operating surplus lines authority after the underlying P&C license has lapsed, been suspended, or been revoked.

Scenario: a commercial insured needs a specialty liability limit no authorized insurer will write. Action: document the diligent search, verify an eligible nonadmitted insurer, bind, disclose nonadmitted status in writing, and remit premium tax.

Scenario: an authorized insurer offers the same coverage at a higher premium. Action: place with the authorized insurer; price alone does not justify surplus lines.

Scenario: the chosen nonadmitted insurer is not on the eligible list. Action: do not bind; find an eligible insurer or an authorized market.

Scenario: the insured asks whether the Georgia guaranty fund protects the policy. Action: explain in writing that surplus lines with a nonadmitted insurer is generally not covered by the guaranty association.

Scenario: the broker's P&C license lapses mid-year. Action: stop surplus lines placements until the license and surplus lines authority are restored.

Scenario: a policy is cancelled with return premium. Action: recalculate the premium tax and reflect the credit on the next return.

Scenario: the Commissioner removes an insurer from the eligible list. Action: no new or renewal placements with that insurer; handle existing policies per rule.

Scenario: a nonresident broker's home state ends reciprocity. Action: cease Georgia surplus lines placements until a new licensure basis exists.

Scenario: the Department requests placement records. Action: produce the search, eligibility, disclosure, and tax documentation for each transaction.

Key term: surplus lines - insurance placed with an eligible nonadmitted insurer after a documented diligent search shows authorized insurers will not write the risk.

Key term: eligible surplus lines insurer - a nonadmitted insurer approved by the Commissioner and listed for surplus lines placements in Georgia.

Key term: diligent search - the documented effort to obtain coverage from authorized insurers before using a nonadmitted insurer.

Key term: surplus lines broker - a licensed Georgia P&C producer with authority to place, service, and report surplus lines business.

Key term: nonadmitted insurer - an insurer not licensed to transact insurance in Georgia but possibly eligible for surplus lines placements.

Key term: premium tax - the tax on surplus lines premiums collected and remitted by the surplus lines broker.

Key term: guaranty fund exclusion - the rule that Georgia guaranty association protection generally does not extend to nonadmitted insurer claims.

Key term: unauthorized insurance - transacting insurance through an insurer not authorized or eligible, or through an unlicensed producer, subject to penalties.

Key term: Commissioner's eligible list - the official roster of nonadmitted insurers approved for Georgia surplus lines placements.

Licensing authority: the Georgia Commissioner of Insurance and Safety Fire issues, renews, suspends, and revokes surplus lines broker authority.

Eligibility to apply: active Georgia property and casualty producer license, passage of the surplus lines exam or approved waiver, and payment of required fees.

Nonresident path: home state surplus lines license plus reciprocity with Georgia supports a Georgia nonresident surplus lines license.

Renewal: surplus lines authority renews with the underlying P&C license cycle and requires completion of applicable continuing education.

Notification duties: report changes of address, name, and designated responsible producer within the period set by rule.

Supervision duty: the designated responsible broker ensures agency staff comply with diligent search, disclosure, and tax rules.

Fiduciary duty: surplus lines premiums are held in trust and must be remitted to the insurer as required.

Advertising limit: do not imply a nonadmitted insurer is admitted in Georgia in quotes, ads, or policy documents.

Enforcement: fines, suspension, revocation, and possible criminal penalties apply to violations of the surplus lines article.

Rule: the surplus lines broker must verify the nonadmitted insurer's eligibility as of the binding date, not merely at some earlier point.

Rule: the diligent search must be completed before binding, not after the policy is issued.

Rule: written nonadmitted disclosure must reach the insured; oral disclosure alone does not satisfy the requirement.

Rule: premium tax is calculated on the surplus lines premium at the statutory rate and remitted with the required return.

Rule: return premiums from cancellation or endorsement reduce the tax base and must be reflected in the next filing.

Rule: records supporting search, eligibility, disclosure, and tax must be retained for the statutory period and produced on request.

Rule: a surplus lines broker may not place business through an unlicensed producer or an unlicensed agency.

Rule: an insurer removed from the eligible list may not receive new or renewal placements.

Rule: the designated responsible broker is accountable for the agency's surplus lines compliance.

Definition: surplus lines placement - the process of obtaining coverage from an eligible nonadmitted insurer after authorized markets decline the risk.

Definition: diligent search - the documented effort to obtain coverage from authorized insurers before using a nonadmitted insurer.

Definition: eligible insurer - a nonadmitted insurer the Commissioner has approved and listed for Georgia surplus lines placements.

Definition: surplus lines broker - a licensed Georgia P&C producer authorized to place, service, and report surplus lines business.

Definition: premium tax - the tax on surplus lines premiums collected and remitted by the surplus lines broker.

Definition: guaranty fund exclusion - the rule that Georgia guaranty association protection generally does not extend to nonadmitted insurer claims.

Definition: unauthorized insurance - transacting insurance through an insurer not authorized or eligible, or through an unlicensed producer, subject to penalties.

Definition: Commissioner's eligible list - the official roster of nonadmitted insurers approved for Georgia surplus lines placements.

Definition: written nonadmitted disclosure - the notice to the insured stating the insurer is not admitted and guaranty fund protection does not apply.

Compliance cycle: license and CE renewal, diligent search documentation, eligibility verification, written disclosure, premium tax remittance, and annual report filing.

Diligent search evidence: authorized insurers contacted, dates, coverage and limits requested, and specific declination reasons.

Eligibility evidence: confirmation of the insurer's listing on the Commissioner's eligible list as of the binding date.

Disclosure evidence: signed or acknowledged written notice of nonadmitted status and guaranty fund exclusion.

Tax evidence: premium basis, rate applied, amount collected, remittance date, and filed return confirmation.

Policy evidence: declarations, binder, endorsements, cancellation notices, and return premium calculations.

Licensing evidence: current P&C license, surplus lines authority, appointments, CE completion, and entity license if applicable.

Nonresident evidence: home state license and surplus lines authority, reciprocity evidence, and home state good standing.

Remediation evidence: documentation of cancellation, replacement coverage, and amended tax filings for any noncompliant placement.

Prohibited: placing a Georgia risk with a nonadmitted insurer not on the Commissioner's eligible list.

Prohibited: skipping or fabricating the diligent search to route business to a nonadmitted insurer for lower premium or higher commission.

Prohibited: failing to give written notice that the insurer is nonadmitted and not covered by the Georgia guaranty fund.

Prohibited: commingling surplus lines premiums with operating funds or failing to remit premiums to the insurer.

Prohibited: collecting surplus lines premium tax and failing to remit it or filing false or incomplete returns.

Prohibited: placing business through or on behalf of an unlicensed producer or agency.

Prohibited: continuing new or renewal placements with an insurer removed from the eligible list.

Prohibited: misrepresenting an insurer's admitted status in advertising, quotes, or policy documents.

Prohibited: operating surplus lines authority after the underlying P&C license has lapsed, been suspended, or been revoked.

Scenario: a commercial insured needs a specialty liability limit no authorized insurer will write. Action: document the diligent search, verify an eligible nonadmitted insurer, bind, disclose nonadmitted status in writing, and remit premium tax.

Scenario: an authorized insurer offers the same coverage at a higher premium. Action: place with the authorized insurer; price alone does not justify surplus lines.

Scenario: the chosen nonadmitted insurer is not on the eligible list. Action: do not bind; find an eligible insurer or an authorized market.

Scenario: the insured asks whether the Georgia guaranty fund protects the policy. Action: explain in writing that surplus lines with a nonadmitted insurer is generally not covered by the guaranty association.

Scenario: the broker's P&C license lapses mid-year. Action: stop surplus lines placements until the license and surplus lines authority are restored.

Scenario: a policy is cancelled with return premium. Action: recalculate the premium tax and reflect the credit on the next return.

Scenario: the Commissioner removes an insurer from the eligible list. Action: no new or renewal placements with that insurer; handle existing policies per rule.

Scenario: a nonresident broker's home state ends reciprocity. Action: cease Georgia surplus lines placements until a new licensure basis exists.

Scenario: the Department requests placement records. Action: produce the search, eligibility, disclosure, and tax documentation for each transaction.

Key term: surplus lines - insurance placed with an eligible nonadmitted insurer after a documented diligent search shows authorized insurers will not write the risk.

Key term: eligible surplus lines insurer - a nonadmitted insurer approved by the Commissioner and listed for surplus lines placements in Georgia.

Key term: diligent search - the documented effort to obtain coverage from authorized insurers before using a nonadmitted insurer.

Key term: surplus lines broker - a licensed Georgia P&C producer with authority to place, service, and report surplus lines business.

Key term: nonadmitted insurer - an insurer not licensed to transact insurance in Georgia but possibly eligible for surplus lines placements.

Key term: premium tax - the tax on surplus lines premiums collected and remitted by the surplus lines broker.

Key term: guaranty fund exclusion - the rule that Georgia guaranty association protection generally does not extend to nonadmitted insurer claims.

Key term: unauthorized insurance - transacting insurance through an insurer not authorized or eligible, or through an unlicensed producer, subject to penalties.

Key term: Commissioner's eligible list - the official roster of nonadmitted insurers approved for Georgia surplus lines placements.

Licensing authority: the Georgia Commissioner of Insurance and Safety Fire issues, renews, suspends, and revokes surplus lines broker authority.

Eligibility to apply: active Georgia property and casualty producer license, passage of the surplus lines exam or approved waiver, and payment of required fees.

Nonresident path: home state surplus lines license plus reciprocity with Georgia supports a Georgia nonresident surplus lines license.

Renewal: surplus lines authority renews with the underlying P&C license cycle and requires completion of applicable continuing education.

Notification duties: report changes of address, name, and designated responsible producer within the period set by rule.

Supervision duty: the designated responsible broker ensures agency staff comply with diligent search, disclosure, and tax rules.

Fiduciary duty: surplus lines premiums are held in trust and must be remitted to the insurer as required.

Advertising limit: do not imply a nonadmitted insurer is admitted in Georgia in quotes, ads, or policy documents.

Enforcement: fines, suspension, revocation, and possible criminal penalties apply to violations of the surplus lines article.

Rule: the surplus lines broker must verify the nonadmitted insurer's eligibility as of the binding date, not merely at some earlier point.

Rule: the diligent search must be completed before binding, not after the policy is issued.

Rule: written nonadmitted disclosure must reach the insured; oral disclosure alone does not satisfy the requirement.

Rule: premium tax is calculated on the surplus lines premium at the statutory rate and remitted with the required return.

Rule: return premiums from cancellation or endorsement reduce the tax base and must be reflected in the next filing.

Rule: records supporting search, eligibility, disclosure, and tax must be retained for the statutory period and produced on request.

Rule: a surplus lines broker may not place business through an unlicensed producer or an unlicensed agency.

Rule: an insurer removed from the eligible list may not receive new or renewal placements.

Rule: the designated responsible broker is accountable for the agency's surplus lines compliance.

Definition: surplus lines placement - the process of obtaining coverage from an eligible nonadmitted insurer after authorized markets decline the risk.

Definition: diligent search - the documented effort to obtain coverage from authorized insurers before using a nonadmitted insurer.

Definition: eligible insurer - a nonadmitted insurer the Commissioner has approved and listed for Georgia surplus lines placements.

Definition: surplus lines broker - a licensed Georgia P&C producer authorized to place, service, and report surplus lines business.

Definition: premium tax - the tax on surplus lines premiums collected and remitted by the surplus lines broker.

Definition: guaranty fund exclusion - the rule that Georgia guaranty association protection generally does not extend to nonadmitted insurer claims.

Definition: unauthorized insurance - transacting insurance through an insurer not authorized or eligible, or through an unlicensed producer, subject to penalties.

Definition: Commissioner's eligible list - the official roster of nonadmitted insurers approved for Georgia surplus lines placements.

Definition: written nonadmitted disclosure - the notice to the insured stating the insurer is not admitted and guaranty fund protection does not apply.

Compliance cycle: license and CE renewal, diligent search documentation, eligibility verification, written disclosure, premium tax remittance, and annual report filing.

Diligent search evidence: authorized insurers contacted, dates, coverage and limits requested, and specific declination reasons.

Eligibility evidence: confirmation of the insurer's listing on the Commissioner's eligible list as of the binding date.

Disclosure evidence: signed or acknowledged written notice of nonadmitted status and guaranty fund exclusion.

Tax evidence: premium basis, rate applied, amount collected, remittance date, and filed return confirmation.

Policy evidence: declarations, binder, endorsements, cancellation notices, and return premium calculations.

Licensing evidence: current P&C license, surplus lines authority, appointments, CE completion, and entity license if applicable.

Nonresident evidence: home state license and surplus lines authority, reciprocity evidence, and home state good standing.

Remediation evidence: documentation of cancellation, replacement coverage, and amended tax filings for any noncompliant placement.

Prohibited: placing a Georgia risk with a nonadmitted insurer not on the Commissioner's eligible list.

Prohibited: skipping or fabricating the diligent search to route business to a nonadmitted insurer for lower premium or higher commission.

Prohibited: failing to give written notice that the insurer is nonadmitted and not covered by the Georgia guaranty fund.

Prohibited: commingling surplus lines premiums with operating funds or failing to remit premiums to the insurer.

Prohibited: collecting surplus lines premium tax and failing to remit it or filing false or incomplete returns.

Prohibited: placing business through or on behalf of an unlicensed producer or agency.

Prohibited: continuing new or renewal placements with an insurer removed from the eligible list.

Prohibited: misrepresenting an insurer's admitted status in advertising, quotes, or policy documents.

Prohibited: operating surplus lines authority after the underlying P&C license has lapsed, been suspended, or been revoked.

Scenario: a commercial insured needs a specialty liability limit no authorized insurer will write. Action: document the diligent search, verify an eligible nonadmitted insurer, bind, disclose nonadmitted status in writing, and remit premium tax.

Scenario: an authorized insurer offers the same coverage at a higher premium. Action: place with the authorized insurer; price alone does not justify surplus lines.

Scenario: the chosen nonadmitted insurer is not on the eligible list. Action: do not bind; find an eligible insurer or an authorized market.

Scenario: the insured asks whether the Georgia guaranty fund protects the policy. Action: explain in writing that surplus lines with a nonadmitted insurer is generally not covered by the guaranty association.

Scenario: the broker's P&C license lapses mid-year. Action: stop surplus lines placements until the license and surplus lines authority are restored.

Scenario: a policy is cancelled with return premium. Action: recalculate the premium tax and reflect the credit on the next return.

Scenario: the Commissioner removes an insurer from the eligible list. Action: no new or renewal placements with that insurer; handle existing policies per rule.

Scenario: a nonresident broker's home state ends reciprocity. Action: cease Georgia surplus lines placements until a new licensure basis exists.

Scenario: the Department requests placement records. Action: produce the search, eligibility, disclosure, and tax documentation for each transaction.

Key term: surplus lines - insurance placed with an eligible nonadmitted insurer after a documented diligent search shows authorized insurers will not write the risk.

Key term: eligible surplus lines insurer - a nonadmitted insurer approved by the Commissioner and listed for surplus lines placements in Georgia.

Key term: diligent search - the documented effort to obtain coverage from authorized insurers before using a nonadmitted insurer.

Key term: surplus lines broker - a licensed Georgia P&C producer with authority to place, service, and report surplus lines business.

Key term: nonadmitted insurer - an insurer not licensed to transact insurance in Georgia but possibly eligible for surplus lines placements.

Key term: premium tax - the tax on surplus lines premiums collected and remitted by the surplus lines broker.

Key term: guaranty fund exclusion - the rule that Georgia guaranty association protection generally does not extend to nonadmitted insurer claims.

Key term: unauthorized insurance - transacting insurance through an insurer not authorized or eligible, or through an unlicensed producer, subject to penalties.

Key term: Commissioner's eligible list - the official roster of nonadmitted insurers approved for Georgia surplus lines placements.

Licensing authority: the Georgia Commissioner of Insurance and Safety Fire issues, renews, suspends, and revokes surplus lines broker authority.

Eligibility to apply: active Georgia property and casualty producer license, passage of the surplus lines exam or approved waiver, and payment of required fees.

Nonresident path: home state surplus lines license plus reciprocity with Georgia supports a Georgia nonresident surplus lines license.

Renewal: surplus lines authority renews with the underlying P&C license cycle and requires completion of applicable continuing education.

Notification duties: report changes of address, name, and designated responsible producer within the period set by rule.

Supervision duty: the designated responsible broker ensures agency staff comply with diligent search, disclosure, and tax rules.

Fiduciary duty: surplus lines premiums are held in trust and must be remitted to the insurer as required.

Advertising limit: do not imply a nonadmitted insurer is admitted in Georgia in quotes, ads, or policy documents.

Enforcement: fines, suspension, revocation, and possible criminal penalties apply to violations of the surplus lines article.

Rule: the surplus lines broker must verify the nonadmitted insurer's eligibility as of the binding date, not merely at some earlier point.

Rule: the diligent search must be completed before binding, not after the policy is issued.

Rule: written nonadmitted disclosure must reach the insured; oral disclosure alone does not satisfy the requirement.

Rule: premium tax is calculated on the surplus lines premium at the statutory rate and remitted with the required return.

Rule: return premiums from cancellation or endorsement reduce the tax base and must be reflected in the next filing.

Rule: records supporting search, eligibility, disclosure, and tax must be retained for the statutory period and produced on request.

Rule: a surplus lines broker may not place business through an unlicensed producer or an unlicensed agency.

Rule: an insurer removed from the eligible list may not receive new or renewal placements.

Rule: the designated responsible broker is accountable for the agency's surplus lines compliance.