US: NAIC Codes - At a glance

Surplus Lines

In order to write surplus lines business in the United States, an important pre-requisite for Lloyd’s syndicates is that they must apply to and be listed as eligible surplus lines insurers on the ‘Quarterly Listing of Alien Insurers’ which is maintained by the International Insurers Department (“IID”) of the National Association of Insurance Commissioners (“NAIC”).To appear on the IID list, syndicates must complete an application, including fee, with the IID and be approved by the NAIC Surplus Lines Working Group. To remain on the list, syndicates are required to pay an annual fee and complete an annual financial return filing, including financial statements, premium data, copies of auditors’ reports and details of US trust accounts. Full criteria are set forth in the IID ‘Plan of Operation for Listing of Alien Non-admitted Insurers’. Once listed, each syndicate is assigned its own NAIC ‘alien identification number’, sometimes referred to as an ‘NAIC code’ or ‘Alien ID’. The alien ID is a 7-digit number with the prefix AA – it is different from the standard 5-digit NAIC number assigned to licensed insurers. The listing assures brokers and insureds as to the eligibility of non-US/alien insurers with which surplus lines insurance is being placed. The Quarterly Listing of Alien Insurers can be found here.

Reinsurance

Lloyd’s is an Reciprocal reinsurer in all US states and territories. In order to write US reinsurance, Lloyd’s syndicates must be registered with the NAIC. Once registered, the syndicates appear in the NAIC Reinsurers List (see the Lloyd’s List tab) along with their ‘reciprocal jurisdiction reinsurer number which will be the same number as the alien identification number but with the prefix RJ instead of AA.

Lloyd’s syndicates that have been approved to write surplus lines insurance and/or registered to write reinsurance in the US appear on the NAIC Listing of Companies which can be found here.

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