Hawaii Surplus Lines flashcards
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33 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Surplus lines insurance
- Coverage placed with a non-admitted insurer when admitted insurers are unable or unwilling to provide the coverage; also called excess and surplus lines.
- Non-admitted insurer
- An insurer not licensed in Hawaii but eligible to write surplus lines if it meets capital, solvency, and authorization requirements in its domicile.
- Surplus lines broker license
- A Hawaii license required in addition to a property and casualty producer license to place business with non-admitted insurers.
- Diligent search
- Documented effort to obtain coverage from admitted insurers before placing a risk with a surplus lines insurer; typically requires at least three declinations.
- Eligible surplus lines insurer
- A non-admitted insurer that meets Hawaii's capital and surplus requirements and appears on the Insurance Division's approved list.
- Premium tax rate
- Hawaii surplus lines premium tax is 4.68% of gross premium, including policy fees, remitted by the surplus lines broker.
- Filing deadline
- Surplus lines placements must be reported to the Hawaii Insurance Division within 30 days of the policy effective date.
- Guaranty fund exclusion
- Surplus lines policies are not covered by the Hawaii Insurance Guaranty Association; the insured must acknowledge this in writing.
- Hawaii Revised Statutes Chapter 431
- The Hawaii insurance code; Article 8 governs surplus lines insurance and the duties of surplus lines brokers.
- Surplus lines disclosure
- A written notice to the insured stating that the insurer is not admitted and that guaranty fund protection does not apply.
- Unauthorized insurer placement
- Placing coverage with an insurer not eligible in Hawaii is prohibited and may be an unfair trade practice.
- Policy fees
- Fees charged by the surplus lines insurer or broker that are included in the premium base for calculating Hawaii premium tax.
- Surplus lines broker duties
- Licensure, diligent search documentation, eligibility verification, disclosure, premium tax remittance, and placement reporting to the Insurance Division.
- Admitted insurer
- An insurer licensed by the Hawaii Insurance Division to transact insurance and subject to guaranty fund protection.
- Export list
- A list of coverages exempt from the diligent search requirement because the admitted market is presumed unavailable.
- Surplus lines tax remittance
- The surplus lines broker must remit the 4.68% premium tax to Hawaii, typically quarterly or as prescribed by the Insurance Division.
- Certificate of eligibility
- Documentation from the non-admitted insurer or its domiciliary regulator confirming it meets Hawaii's eligibility standards.
- Surplus lines policy
- An insurance contract issued by a non-admitted insurer; it is not subject to Hawaii rate and form filing requirements.
- Minimum capital and surplus
- Hawaii requires eligible surplus lines insurers to maintain at least $15 million in capital and surplus, verified annually.
- Surplus lines broker records
- Brokers must keep records of each placement, including the diligent search, for at least five years for examination by the Division.
- Hawaii Insurance Division
- The state agency that licenses surplus lines brokers, maintains the eligible insurer list, and enforces surplus lines laws.
- Surplus lines placement report
- A filing submitted to the Hawaii Insurance Division containing insured name, insurer, coverage, premium, and effective date.
- Diligent search documentation
- Written evidence of declinations or no-quotes from admitted insurers, retained by the surplus lines broker and subject to audit.
- Surplus lines broker commission
- Compensation paid by the insurer to the surplus lines broker; it must be disclosed and is separate from premium tax.
- Non-admitted insurer solvency
- Eligible surplus lines insurers must be solvent and authorized in their domicile; Hawaii does not guarantee their solvency.
- Surplus lines premium
- The gross amount charged for surplus lines coverage, including policy fees, used to calculate the 4.68% Hawaii premium tax.
- Surplus lines broker bond
- Hawaii may require a surety bond as a condition of surplus lines broker licensure to ensure tax and fee remittance.
- Placement with ineligible insurer
- Placing surplus lines coverage with an insurer not on Hawaii's eligible list is prohibited and subject to regulatory action.
- Surplus lines renewal
- Each renewal requires a new diligent search unless the coverage is exempt, and a new placement report must be filed.
- Surplus lines tax filing frequency
- Premium tax returns are filed with the Hawaii Insurance Division as prescribed, typically quarterly, with payment due at filing.
- Surplus lines broker continuing education
- Surplus lines brokers must complete Hawaii-approved continuing education, including ethics and surplus lines-specific hours.
- Surplus lines risk retention
- The surplus lines insurer retains the risk; the broker must verify the insurer's eligibility and financial strength before placement.
- Surplus lines disclosure form
- A signed statement by the insured acknowledging that the insurer is non-admitted and not covered by the guaranty fund.