West Virginia Filing Guide

WEST VIRGINIA SURPLUS LINES REQUIREMENTS: 1. REGISTRATION & LICENSURE: - All surplus lines business MUST be written through a WV licensed Surplus Lines Licensee - Any resident or nonresident P&C producer licensed for 3+ years may apply for Surplus Lines Producer License - Contact Agent Licensing Division for application 2. INSURER ELIGIBILITY: West Virginia maintains both an eligibility list and export list Foreign Insurers: - Must appear on Commissioner's list of eligible surplus lines insurers - Minimum capital/surplus: $15,000,000 - Certificate of Authority from state of domicile - Annual statement signed with jurat page - Must be solvent Alien Insurers: - Must be on NAIC quarterly listing of alien insurers - Certificate of Authority from jurisdiction of domicile - Attestation of Filing of IID Financial Format - Description of products (Form SL-2) and proposed business plan Eligibility list: https://www.wvinsurance.gov/company Export list: https://www.wvinsurance.gov/Portals/0/pdf/company/Surplus_Lines_Export_List_12.17.24.pdf 3. FILING REQUIREMENTS: All Insurers: - Application (Form SL1 for foreign, Form SL2 for alien) - Plan of Operation - Requalification Fee: $100 - Annual filing deadline: On or before May 1 Foreign Insurers: - Complete Form SL1 - Certificate of Authority from state of domicile - Signed annual statement jurat page - Description of products and proposed market plan Alien Insurers: - Complete Form SL2 - NAIC listing required - Certificate of Authority from jurisdiction of domicile - Form SL-Alien Aff. (Affidavit of Filing and Financial Attestation) - Description of products and proposed market plan 4. CONSUMER PROTECTION REQUIREMENTS: CRITICAL: West Virginia has extensive consumer notice requirements A. Mandatory Consumer Notice (BEFORE binding): - Must be printed in 16-POINT TYPE - Must be on SEPARATE DOCUMENT affixed to application - Applicant must sign and date to acknowledge receipt - Licensee must maintain signed notice for 10 YEARS from policy expiration - Copy must be tendered to insured at policy delivery Required Consumer Notice Language: "Notice: 1. An insurer that is not licensed in this state is issuing the insurance policy that you have applied to purchase. These companies are called 'nonadmitted' or 'surplus lines' insurers. 2. The insurer is not subject to the financial solvency regulation and enforcement that applies to licensed insurers in this state. 3. These insurers generally do not participate in insurance guaranty funds created by state law. These guaranty funds will not pay your claims or protect your assets if the insurer becomes insolvent and is unable to make payments as promised. 4. Some states maintain lists of approved or eligible surplus lines insurers and surplus lines brokers may use only insurers on the lists. Some states issue orders that particular surplus lines insurers cannot be used. 5. For additional information about the above matters and about the insurer, you should ask questions of your insurance agent or surplus lines licensee. You may also contact your insurance commission consumer help line." B. Written Notification (BEFORE contract is binding): No contract is binding and no premium or fee is due until licensee notifies insured in writing that: - Insurer is not licensed by West Virginia and not subject to its supervision - In event of insolvency, losses will NOT be paid by state guaranty fund - Copy must be maintained with contract records C. Required Policy Stamp: Each policy or evidence of insurance must have printed or stamped in CONTRASTING COLOR on front page: "THIS COMPANY IS NOT LICENSED TO DO BUSINESS IN WEST VIRGINIA AND IS NOT SUBJECT TO THE WEST VIRGINIA INSURANCE GUARANTY ASSOCIATION ACT." 5. EXEMPTED INSURANCE TYPES: Transactions relative to policies issued outside West Virginia involving: - Cargo vessels, craft or hulls, cargoes - Marine builder's risks - Marine protection and indemnity - Other risks commonly insured under ocean or wet marine forms - Strikes and war risks 6. INDUSTRIAL INSURED EXEMPTION: - Applicable to CAPTIVE INSURERS ONLY - NRRA exempt commercial purchaser exemption adopted (W. Va. Code § 33-12C-3(f)) 7. BROKER FEES: Surplus line broker may charge policyholder fees for underwriting, issuing, processing, inspecting, servicing, or auditing IF: - Service is required by the excess line insurer - Service is actually provided OR cost actually incurred by licensee - Provision or cost is REASONABLE, DOCUMENTED, and VERIFIABLE 8. SPECIAL NOTES: - West Virginia HAS a Surplus Lines Association - West Virginia HAS an Export List - Does not allow formation of domestic surplus lines insurers - Zero-pay filing option available for quarterly filings (except Q4) - Fourth quarter requires completion of Annual Tax Packet