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Disclosure Statement

A:

The D-1 statement is a freestanding document in 16-point, bold type containing wording specified by statute notifying the applicant that the insurance he or she is applying to purchase is with an insurer not licensed by the state of California. The disclosure statement must be signed by the applicant at the time the producer accepts an application for any insurance policy issued by a surplus lines insurer, other than to renew a policy. Refer to CIC Section 1764.1 for specific wording.

 

A:
The D-1 statement is not required to be signed by the applicant to renew a policy with the same carrier.
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It is not necessary for a surplus line broker to file a copy of the D-1 statement with the SLA.
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No; however, the surplus line broker shall be responsible for ensuring that the applicant is an industrial insured.
A:

An industrial insured is an insured that does both of the following:

1. The insured employs at least 25 employees on average during the prior 12 months.

2. The insured has aggregate annual premiums for insurance for all risks other than workers' compensation and health coverage totaling no less than twenty-five thousand dollars ($25,000), or obtains insurance through the services of a full-time employee acting as an insurance manager or a continuously retained insurance consultant. A "continuously retained insurance consultant" does not include:

     (i) an agent or broker through whom the insurance is being placed,

     (ii) a subagent or subproducer involved in the transaction, or

     (iii) an agent or broker that is a business organization employing or contracting with a person mentioned in clauses (i) and (ii).

An industrial insured is not required to sign the D-1 statement per CIC Section 1764.1(c). A D-2 statement is still required.

 

A:

The agent, broker, or surplus line broker who received the originally signed D-1 statement from the insured must maintain the original in his or her records for a period of at least five years and send copies of the D-1 to all agents, brokers, or surplus line brokers involved in the transaction. 

Scanned copies will meet the recordkeeping requirements of Sections 2190 to 2190.7 of the California Code of Regulations. The scanned copies must be a full replica of the document, clearly legible, and in a format that does not allow editing. Refer to Bulletin 1127.  

A:
The D-2 disclosure statement contains substantially the same wording as the D-1 disclosure statement but does not require a signature by the insured. Every policy issued by a surplus line insurer and every certificate evidencing the placement of insurance must contain, or have affixed on the front by the insurer or surplus line broker, this disclosure statement in 16-point bold type.
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The D-2 statement is required to renew a policy.
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It is not necessary for a surplus line broker to file a copy of the D-2 statement with a policy submitted to the SLA.