Excess and Surplus Lines / Non-Admitted Reporting

Overview
Excess and Surplus (E&S) lines policies, also called non-admitted policies, require special handling because the carriers are not licensed in the insured’s state. This means they do not file rates or forms with the state and are not backed by the state guaranty fund. These policies cover higher-risk or unusual accounts that standard admitted carriers will not insure.

All E&S carriers are non-admitted, but not all non-admitted carriers are true E&S. Because of the regulatory requirements, agencies must carefully track disclosures, taxes, affidavits, and filings. Momentum AMS provides tools to properly tag, track, and document E&S workflows so your agency remains compliant.

1️⃣ Identify E&S / Non-Admitted Policies

Goal: Flag policies requiring special compliance steps.

• Check Carrier Status

  • Open the Carrier Profile in Momentum AMS.
  • Confirm whether the Admitted field is marked No (non-admitted).
  • Review any built-in notes on tax filing or disclosure requirements.
  • Tip: Use carrier-level tags to quickly identify admitted vs. non-admitted status. Apply a tag by clicking Actions → Apply Tag in the upper right of the Carrier Profile. This makes status and compliance notes easy to track across the system.
    

• Tag and Note the Policy
  
  

  • In the Policy Details Page → Tags, add E&S Policy or Non-Admitted.

  • Go to Policy Notes → Add New and enter:
    “This policy is non-admitted/E&S and requires surplus lines compliance filings (disclosures, affidavits, taxes).”

• Assign Prep Task

  • In Tasks → Add New, create an E&S Prep task with a due date within 3–5 business days of binding.

  • Assign the task to the account manager or compliance coordinator.

• Notify Internal Team

  • If the CSR/producer is inexperienced with E&S, @tag a supervisor in the task comment to review.

2️⃣ Collaborate with Wholesale Brokers or MGAs

Goal: Ensure all necessary documents are obtained from the wholesaler.

• Verify Broker Contact

  • Open the Carrier/MGA record linked to the policy to confirm the wholesaler’s contact information.

• Request Required Documentation

  • Use a saved Email Template (binder, dec page, specimen policy, disclosures).

  • Upload the request email under the insured’s Documents tab.

• Track Communication

  • Add a Note summarizing the request date and expected turnaround.

  • Tag the policy as E&S – Pending Docs.

• Set Follow-Up Task

  • Add a task titled “Follow up on E&S policy docs” due in 3 business days.

3️⃣ Prepare State-Mandated Disclosures

Goal: Complete disclosure and compliance paperwork before delivering the policy.

Note: While the MGA often handles the actual filing, the agency is usually responsible for obtaining the insured’s signed affidavit and sending it back to the MGA.

1. Identify State Requirements

   • Review the MGA’s instructions or check the state surplus lines website.

   • Common forms: Surplus Lines Disclosure, Diligent Effort Affidavit, Notice of Non-Admitted Status.

2. Access Templates

   • From your agency’s Forms Library in Momentum AMS.

   • Or download the latest forms directly from the state regulator’s site.

3. Pre-Fill with Policy Data

   • Complete with: insured name, carrier, premium, taxes/fees, and broker of record.

4. Upload to Documents

   • Save in the insured’s Documents tab.

   • Use a clear filename, e.g., State_Disclosure_E&SPolicy_March2025.pdf.

5. Send for Signature/Filing

   • Email the disclosure package to the insured for signature.

   • Once signed, forward it to the MGA for filing.

   • Add a task reminder (2 business days later) to confirm the MGA has received it.

4️⃣ Explain Policy Terms to the Insured

Goal: Ensure the client understands differences in non-admitted coverage.

• Review Final Policy Docs

  • Open Documents → Files

  • Identify important items: minimum earned premium, exclusions, deductibles, non-renewal terms.

• Prepare Talking Points

  • Explain in plain terms:

    • Not backed by guaranty fund.

    • Non-flat cancellations.

    • Minimum earned premium applies.

    • Renewals not guaranteed.

• Communicate with the Insured

  • Schedule a call or send an email with the disclosure packet.

  • Log the communication in Notes, including date, summary, and outcome.

  • Upload any insured replies or signed forms into Documents.

• Set a Follow-Up Task

  • Example: “Confirm insured reviewed and signed disclosure forms.”

5️⃣ File Policy Documents with Regulators

Goal: Complete state surplus lines compliance filings.

• Check Filing Requirements

  • Review state rules and carrier/MGA contract (some MGAs handle filings for you).

  • Determine if a Stamping Office filing is required.

• Assemble Filing Packet

  • Include dec page/binder, Surplus Lines Disclosure, Diligent Effort Affidavit, and tax worksheet.

• Submit Filing

  • Upload through the state portal, stamping office site, or email.

  • Save confirmation receipt as PDF and upload to the insured’s Documents tab.

• Document Submission in AMS

  • Add a Note (e.g., Filed surplus lines docs with state on 3/20/25, confirmation #12345).

  • Tag policy as E&S – Filed.

• Set Compliance Follow-Up Task

  • Example: “Confirm surplus lines filing acceptance” due 5–10 business days later.

✅ Result: The policy is properly flagged, disclosures delivered, insured educated, filings submitted, and all documentation stored in Momentum AMS. This ensures compliance with state regulations and protects the agency from penalties while providing transparency for both clients and internal teams.