CA| The Surplus Line Association of California (SLA) Bulletin #1506 addresses the 2025 adjustment of financial thresholds for the “commercial insured” exemption under California Insurance Code, (also which allows certain large commercial policyholders to bypass the diligent search requirement for surplus lines insurance. Effective January 1, 2025, the minimum qualifying amounts for net worth, annual revenues, and annual budgeted expenditures have been increased by 22.7% based on changes in the Consumer Price Index, with the California Department of Insurance adopting the National Association of Insurance Commissioners’ (NAIC) calculations.
- The new thresholds are: net worth of $29,179,483, annual revenues of $72,948,708, and annual budgeted expenditures of $43,769,225, effective January 1, 2025.
- These adjustments ensure that only large commercial entities meeting the updated financial criteria qualify for the exemption from the diligent search requirement when purchasing surplus lines insurance in California.