CT| Bulletin SL-06 from the Connecticut Insurance Department outlines revised and restated requirements for surplus lines placements, superseding prior bulletins SL-3 and SL-5. It clarifies regulatory changes to the diligent effort requirement for surplus lines brokers, details exceptions under specific legislation, and provides guidance on filing and payment procedures, tax requirements, and certain insurance types.
Key Points:
- Establishes a revised diligent effort requirement, effective October 1, 2025, with a limited exception for surplus lines brokers placing insurance through unaffiliated wholesale brokers, as outlined by Public Act 25-87.
- Surplus lines brokers must maintain documentation for each placement, including evidence of three declinations by authorized insurers and records supporting diligent search efforts, but are no longer required to file signed statements with the department.
- All surplus lines tax filings and payments must be processed electronically via NAIC’s OPTins platform, with Connecticut maintaining the current quarterly schedule for tax returns and payments.
- Flood insurance and placements for exempt commercial purchasers are exempt from the diligent effort requirement, provided specific disclosure and documentation procedures are followed.