For Producers

About Non-admitted and Reinsurance Reform Act (NRRA)

On July 21, 2010, President Obama signed the federal Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The law includes provisions affecting the transaction of surplus line insurance. Those provisions are referred to as the Non-admitted and Reinsurance Reform Act of 2010 or “NRRA.” The Washington state Legislature passed House Bill 1694 (2011 Legislative Session) which conforms Washington state law to NRRA.

NRRA does not:

  • Impact insurance offered by authorized insurers.
  • Apply to workers' compensation insurance.

NRRA does:

  • Apply only to the placement of unauthorized property and casualty insurance coverage.
  • Permit only an insured's home state to assess or collect surplus line premium tax.
  • Permit only the insured's home state to require compliance with the state’s laws relating to surplus line transactions, including licensing as a surplus line broker.


How does NRRA affect license requirements?

Only the insured's home state may require a surplus line broker to be licensed to sell, solicit or negotiate non-admitted insurance with respect to a particular placement. If Washington state is the insured's home state, the surplus line broker must be licensed in Washington state.


How does NRRA affect diligent-search requirements?

RCW 48.15.040 ( requires the surplus line broker to perform a diligent search of the admitted market and file a certification within 60 days of procuring the surplus line insurance. (Note that RCW 48.15.040 (3) prohibits the procurement of non-admitted insurance for the purpose of securing a lower premium.)

The Surplus Line Association of Washington maintains certification forms designed to meet our requirements. You may reach them at 206-682-3409 or visit their website (

A surplus line broker seeking to procure or place non-admitted insurance on behalf of an exempt commercial purchaser is not required to perform a diligent search if:

  • The broker has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight.
  • The exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a non-admitted insurer.

How does NRRA affect non-admitted insurer eligibility?

NRRA restricts the eligibility requirements a state may impose on non-admitted insurers. See 15 U.S.C. § 8204.

  • For non-admitted insurers domiciled in a U.S. jurisdiction, a broker is permitted to place non-admitted insurance with such insurers, provided they are authorized to write such business in their state of domicile and maintain minimum capital and surplus of $15 million.
  • For non-admitted insurers domiciled outside the U.S., a broker may place business with such insurers provided the insurer is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurance Department of the NAIC.

Washington state does not maintain a list of eligible insurers. The Surplus Line Association of Washington (, however, monitors various insurers for indicators of financial solvency.


How will these rules be applied?

  • New and renewal policies with an effective date prior to July 21, 2011, will be subject to the laws and regulations of Washington state and other jurisdictions, as applicable, in effect on July 20, 2011, and earlier.
  • The effective date of the policy will control with respect to all modifications to the policy, such as endorsements, (including risk-and premium-bearing endorsements), installment payments, and premium audits.
  • New and renewal policies with an effective date on or after July 21, 2011, and any modifications thereto, will be subject to only the laws and regulations of Washington state if Washington state is the home state of the insured.

If you have any questions or need assistance, please contact:

Steven Moore, Premium Tax and Contracting Specialist
Washington State Office of the Insurance Commissioner
Call 360-725-7031
Send a message to Steven if you have questions regarding premium taxes

Bob Hope, Executive Director
The Surplus Line Association of Washington
Call 206-224-4230
Email Bob with questions regarding policy filings

Jeff Baughman, Producer Licensing and Oversight Manager
Washington State Office of the Insurance Commissioner
Call 360-725-7109
Send Jeff a message if you have other questions

The Surplus Line Association of Washington (
Call 206-682-3409