Surplus lines

Surplus lines requirements vary by the insured’s home state. Underflow prices each transaction against the compliance feed when it is configured, keeps a cached state-rule register under Accounting > State rules, and keeps the diligent search on the file it belongs to.

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State records

Each state record can hold:

• Surplus lines tax rate, or a note that the state charges a flat or layered amount the table cannot express
• Stamping fee rate
• Other charges the state levies under their own titles (a service charge, a fire marshal tax, a municipal fee)
• Cancellation notice requirements
• Stamp or disclosure wording
• Filing and document requirements: which forms the state wants, who signs each, and whether it gates binding or filing
• Verification status and source

Quote letters itemize the applicable taxes and stamping fees instead of hiding them inside premium. An invoice repeats those named lines when its tax total still matches the quote snapshot; otherwise it shows one combined Taxes and surcharges line.

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Where the figures come from

A surplus-lines figure has two possible sources, and the record says which one it used. When the InsCipher feed is configured, the tax and fee lines on a quote letter, a bind, an endorsement, and a cancellation come from a live calculation for that transaction: the state, the line of business, the transaction type, the premium, and the fees. The result is snapshotted on the quote’s premium so the bind, the invoice, and the state filing reuse the figures the broker accepted. A monthly job refreshes every state the desk writes in from the same calculator, so the table stays a faithful reference. Without the feed, the state table prices the quote. Its verification status controls whether the quote letter can proceed without referral. State requirements are regulatory facts, not workspace preferences. Accounting > State rules therefore shows the cached rate, source, verification, forms, and last refresh without offering controls to change them. The writing territory and InsCipher line used to refresh that cache belong to the program and appear under Book > Programs.

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Verification referral

Table-based rating can calculate with an active state row whether or not it is verified. A verified row lets the quote letter follow its ordinary charter position. An unverified row adds a referral, so the letter waits for a person to confirm the figures before sending. Rows the feed refreshes land verified, with the feed as their source. That verification covers what the feed supplies: rates, rule kind, titles, other charges, wording, and the document list. The cancellation and nonrenewal notice periods are not among them. They are statute a person enters on the row, a state the feed lands fresh has none, and a cancellation or nonrenewal into that state waits until the period it needs is entered. Manual fallback maintenance remains an internal compliance operation; workspace users do not certify statutory rates in Settings.

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Diligent search

Most states require the surplus lines broker to show that admitted carriers declined the risk before it went to the non-admitted market, and several want that search on a signed affidavit. The file carries the search. Each declination records the carrier, its NAIC code, the date, the reason, the representative who declined, and who received the declination. Aurora records declinations from carrier letters as they arrive; a person records one from the file’s Diligent search block. The state’s verified rule lists the documents the state wants on a placement. Every form on that list that someone must sign becomes its own condition on the quote letter, under the state’s code for the form: a form the state wants before binding blocks the bind, and one it wants for the filing is owed to the filing and stays open on the policy until it arrives. Where the state wants forms signed, they are generated for each quote letter from the file: the insured’s addresses, the program’s carrier, the retail agency and producer where the account is brokered, the desk’s own licence, and the declinations. Each generated form is filed as a document on the file and linked to its own condition, and each condition is received only with that form’s signed copy, which then goes to the state filing under the same code. Fields the feed could not fill are listed on the form so a person completes them by hand. A document on the state’s list with no signer, such as the policy itself, is the desk’s own paper and is pushed to the filing as it exists. The desk’s surplus lines licence, licence holder, NPN, and broker of record are kept under Settings > Workspace. The current diligent-forms request uses the licence type, number, and broker. The stored NPN is not currently sent to the feed, so confirm the rendered affidavit rather than assuming it is present.

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What follows