The North Carolina Surplus Lines Association (“NCSLA”) announced (https://www.ncsla.com/announcements/ncdoi-audit-memorandum) that it has been notified by the North Carolina Department of Insurance (the “Department”) that the Department has begun performing agency reviews of resident and non-resident North Carolina Surplus lines licensees’ files. This announcement links to a Memorandum (https://www.ncsla.com/resources/surplus-lines-licensing) from the NCSLA and the Department to all licensees which includes pertinent questions and answers. One of the main focuses of the agency reviews is to ensure the proper licensing of all individuals who are involved in the “procurement” of a non-admitted policy on a North Carolina risk. This is a core concept of surplus lines (and producer) licensing. All individuals who “procure” insurance need to have their own individual license in addition to the business entity license.
Please contact Westmont Associates with any questions or if you would like support in reviewing your program for compliance in accordance with the North Carolina Surplus Lines licensing laws.