Q: How can a lender determine whether a surplus lines insurer is permitted to issue an insurance policy in a particular state?
A: So a lender could go to the website of the insurance regulator where the collateral property is located to see whether particular surplus lines insurer is permitted to issue an insurance policy in a particular state. Information on surplus lines insurers also may be available in the Consumer Insurance Search (CIS) tool available on the NAIC website. Lenders also may consult additional commercial service providers regarding the eligibility of surplus lines insurers in particular states provided the lenders have validated that these service providers deliver reliable information.
With regard to foreign insurers, lenders should check the NAIC's Quarterly Listing of Alien Insurers, which is maintained consistent with the requirements of the Dodd-Frank Act.
This Q&A was part of the discussion in the Outlook Live – 2019 Interagency Flood Insurance Update on Private Flood Insurance Rule webinar held on 6/18/19 and focused on the new private flood insurance rules that become effective 7/1/19. Information may be found here: https://www.webcaster4.com/Webcast/Page/577/30085