Financial Regulation


A surplus lines insurer must:

  1. Show authorization from the domicilary jurisdiction that the company can write the kind of insurance being written as surplus lines.
  2. Qualify as either a U.S. domiciled or non-U.S. domiciled insurer possessing at least $15 million in policyholder surplus, or an affirmative find of acceptability by the Insurance Division (insurer’s capital and surplus cannot be less than $4.5 million).
  3. If the insurer is an alien, it must maintain a U.S. trust account of at least $5.4 million. (See ORS 735.415 for details.)
  4. If the insurer is listed on the NAIC Quarterly Listing of Alien Insurance and meets additional requirements regarding the use of the list established by rule by the director, they are considered eligible in Oregon.

Determine eligibility

  1. Send a written request for eligibility to:
  2. Provide a copy of the current annual statement certified by the domiciliary state showing capital and surplus of at least $15 million (reference to the annual statement filed with the NAIC is sufficient).
  3. Provide evidence that you are authorized by your domicile's insurance officials to write the kind of insurance to be placed by surplus lines licensees. This could be a certified copy of your Certificate of Authority.

We will send a letter confirming eligibility for surplus line placements in Oregon. The company will appear on the eligibility list on the Surplus Lines Association of Oregon’s website.

Maintaining eligibility

  • File an annual statement by June 30. There is no annual statement filing fee. You can file the annual statement electronically with the National Association of Insurance Commissioners (NAIC).
  • You also must file a hard copy of the signed jurat page in Oregon as proof of filing. Send the signed jurat page to Lynette Hadley at the above address.
  • Pay taxes on surplus lines business. The Surplus Line Association of Oregon collects these taxes.

Producer responsibilities

  • Ensure the soundness and qualification of the insurer
  • Collect state premium tax from policyholder and remit to Surplus Lines Association of Oregon.
  • Conduct "due diligence" before placing the coverage to make sure the coverage is not available in the regular licensed market
  • Make regulatory filings
  • Accept legal service of process against the insurer in certain circumstances


A report must be filed for each piece of business stating the identity of the insured, location of risk, type of coverage, insurer providing coverage, premium amount and applicable taxes and business. The tax rate is 2 percent. The Fire Marshal tax is 0.3 percent, for a total of 2.3 percent. The surplus lines service charge is $15.

Agent for service of process

The agent for service of process is generally the surplus line agent that sold the policy (representing the insurer's agent in the transaction). The surplus line insurance policy must specify the person to whom process shall be delivered. See Oregon Revised Statutes (ORS) 735.485 and 735.490.

Nonadmitted and Reinsurance Reform Act of 2010

Find information about our implementation of this federal law here.