Missouri

General Information:

  1. Missouri maintains a list of eligible surplus lines insurers (see Other Comments section #1).
  2. Missouri does not have a Surplus Lines Association.
  3. Missouri does not have an export list.
  4. Missouri does have an industrial insured exemption that will remain effective (see Appendix C). The NRRA exempt commercial purchaser exemption was incorporated into Missouri law and became effective on 7/7/2011.
  5. Surplus lines tax: 5% (less return premium, and exclusive of state, federal, and local taxes), payable by broker.
  6. Missouri does allow domestic surplus lines insurers in the state (see Other Comments section #9).

Eligibility and Filing Requirements (All Insurers):

A surplus lines licensee shall not place coverage with a nonadmitted insurer unless the licensee determines that the nonadmitted insurer:

  1. Meets the capital and surplus requirements of Missouri or $15 million (the director may waive the financial requirements if the nonadmitted insurer’s capital and surplus is at least $4.5 million and the director finds the insurer is acceptable);
  2. Appears on the most recent list or eligible surplus lines insurers published by the director or appears on the most recent Quarterly Listing of Alien Insurers maintained by the NAIC; and
  3. Surplus lines carriers are requested to provide premium report by July 1 (see Other Comments section #5).

Eligibility and Filing Requirements (Alien Insurers Only):

NAIC Listing automatically puts company on eligibility list.

Eligibility and Filing Requirements (Foreign Insurers Only):

  1. Licensed in home state.
  2. $15 million in capital and surplus.

Types of Insurance Exempted from Surplus Lines Regulation:

None

Other Comments or Requirements:

  1. Missouri’s eligibility list is available at ‎https://insurance.mo.gov/industry/EligibleSL.php.‎
  2. There is no bond requirement for either resident or non-resident surplus lines licensees.
  3. Every evidence of insurance negotiated, placed or procured under the provisions of the Missouri surplus lines law and issued by a Missouri surplus lines licensee shall, on the face of the policy or declaration page of the policy, bear the name of the licensee and the following legend in 10-pt type:
    “This is evidence of insurance procured and developed under the Missouri Surplus Lines Laws. It is NOT covered by the Missouri Insurance Guaranty Association. This insurer is not licensed by the state of Missouri and is not subject to its supervision.”
  4. The report of Missouri business must include the name and address of the producer, name and address of the insured, policy number, effective date of the coverage and premium amount. This document has no bar code and may be transmitted by email to surpluslines@insurance.mo.gov.
  5. Per Mo. Code Regs. Ann. tit. 20, § 200-6.300, surplus lines taxes apply to policy fees as well as premium taxes. The Missouri DOI’s explanation under the foregoing rule is as follows:
    “This amendment clarifies that any fee charged in connection with the placement of surplus lines insurance is subject to the surplus lines insurance premium tax, regardless of whether the fee is charged by the surplus lines insurer or the surplus lines licensee. As such the amendment is consistent with the current practice of the department and is intended to halt the avoidance of tax by merely shifting the stated source of fees from the insurer to the licensee.”
  6. All surplus lines licensees are required to hold an underlying Property and Casualty producer license as a prerequisite to obtaining and maintaining the surplus lines license. Producer licenses are renewed on a biennial basis on the licensee’s birthday.
  7. Appendix One filing is required to be filed within 45 days of the end of the quarter in which the placement was made.
  8. Missouri amended Mo. Rev. Stat. § 384.015 to comply with the federal Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) relating to surplus lines insurance.
    Such amendments to the foregoing statute added the terms “exempt commercial purchaser,” “home state,” “nonadmitted insurance,” and “qualified risk manager” to the definition section of Missouri’s surplus lines laws. The definitions for such terms are consistent with the NRRA (15 U.S.C. § 8206).
    Under Mo. Rev. Stat. § 384.021, a surplus lines licensee seeking to place nonadmitted insurance in Missouri for an exempt commercial purchaser shall not be required to satisfy any requirement to make a due diligence search to determine whether the full amount or type of insurance by the exempt commercial purchaser can be obtained from nonadmitted insurers if:
    • The surplus lines licensee placing the surplus lines insurance has disclosed to such exempt commercial purchaser that the insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
    • The exempt commercial purchaser has subsequently requested in writing the surplus lines licensee to place such insurance from a nonadmitted insurer. Mo. Rev. Stat. §384.021.
  9. Per Mo. Rev. Stat. § 384.018, a nonadmitted insurer that is domiciled in Missouri may be deemed a domestic surplus lines insurer if the:
    • Insurer possesses policyholders’ surplus of at least $20 million;
    • Insurer is an approved or eligible surplus lines insurer in at least one jurisdiction other than Missouri;
    • Board of directors of the insurer has passed a resolution seeking to be a domestic surplus lines insurer in Missouri; and
    • Director of the Missouri DOI has given written approval for the insurer to be a domestic surplus lines insurer.