Deposits and Fees Expected of Domestic Surplus Lines Insurers

The Delaware Department of Insurance published a Bulletin on the deposits, fees, and guaranty fund assessments applicable to Delaware Domestic Surplus Lines Insurers (DSLI). DSLIs are foreign surplus lines insurance companies that redomesticate to Delaware and become licensed.

The Delaware Nonadmitted Insurance Act, passed in 2011, created a category of insurance company called a Delaware Domestic Surplus Lines Insurer. A DSLI can write surplus lines in Delaware, unlike other Delaware domestic insurers. A DSLI is considered a domiciled and admitted company in Delaware, but is not permitted to write coverages that surplus lines companies are barred from writing. While a DSLI is an admitted company, it can only write surplus lines insurance business.