Initial Certification Required; Annual Recertification Unnecessary

Regulatory Bulletin 2017-05: Surplus lines brokers no longer need to annually recertify surplus lines insurers for retention on Arizona's List of Qualified Unauthorized Insurers ("White List").

While A.R.S. § 20-413 continues to require a surplus lines broker to file an initial certification to propose the addition of a foreign unauthorized insurer to Arizona's List of Qualified Unauthorized Insurers ("White List"), a broker no longer needs to annually recertify the insurer. A foreign surplus lines insurer shall remain on the White List unless the surplus lines insurer is removed from the list for the reasons set forth in Arizona law, including but not limited to those set forth in A.R.S. § 20-413(H).

Insurer Filing Exemptions

Administrative Order 13A-071-INS


Arizona-authorized Domestic Surplus Lines Insurer Designation

Form SL-112: Application for Domestic Surplus Lines Insurer Designation

An Arizona-authorized domestic insurer uses this application form to apply to be designated as a domestic surplus lines insurer. 

List of Domestic Surplus Lines Insurers

Surplus lines brokers must place business with an Arizona-authorized insurer when insurance is procurable from an authorized insurer.  When insurance is not procurable from an authorized insurer, a surplus lines broker may procure coverage from a Domestic Surplus Lines Insurer, from an insurer on Arizona's List of Qualified Unauthorized Surplus Line Insurers, or from an insurer on the NAIC Quarterly Listing of Alien Insurers.

Unauthorized (Foreign/Alien) Surplus Lines Insurer Qualification

Form E-700: Certificate of Surplus Lines Broker

For unauthorized foreign/alien insurer qualification: The surplus lines broker must complete and sign this form and provide this form with other surplus lines insurer sponsorship forms to the Department of Insurance Surplus Lines Team. REPLACES FORM SL-110.

Form E-701: Certificate of Public Supervisory Official

For unauthorized foreign/alien insurer qualification: The public supervisory official from the insurer's domicile must complete this form, have signatures notarized, and return the form to the surplus lines broker. The broker must submit the completed form with other surplus lines insurer sponsorship forms. REPLACES FORM SL-111.

Foreign/Alien Surplus Lines Insurers

ARS § 41-1030(G) requires most Arizona government agencies to prominently print the provisions of ARS § 41-1030(B), (D), (E) and (F) on all license applications.  The following is the language in ARS § 41-1030(B), (D), (E) and (F):

B.        An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition.

D.        This section may be enforced in a private civil action and relief may be awarded against the state.  The court may award reasonable attorney fees, damages and all fees associated with the license application to a party that prevails in an action against the state for a violation of this section.

E.        A state employee may not intentionally or knowingly violate this section.  A violation of this section is cause for disciplinary action or dismissal pursuant to the agency’s adopted personnel policy.

F.         This section does not abrogate the immunity provided by section 12-820.01 or 12-820.02.