What is the significance of the “filing fee” in surplus lines insurance?

The significance of the filing fee in surplus lines insurance is that it is a fee paid to the state when filing a surplus lines application. This fee is part of the regulatory process that ensures the surplus lines market operates within the legal framework established by the state. When a broker seeks to place insurance in the surplus lines market—typically because coverage is unavailable in the admitted market—this fee is necessary to formally register the transaction with the state.

By requiring a filing fee, the state can maintain oversight over surplus lines activities, ensuring that all necessary documentation is submitted and that the insurer is recognized, even if it is not licensed in the state. This process safeguards consumers by providing an additional layer of accountability and traceability for surplus lines transactions. The filing fee does not pertain to processing claims, the premium amount, or the categorization of policies as high-risk, which distinguishes its specific function within the surplus lines insurance framework.