Industry Issues | Surplus Lines Reform

NAIC Surplus Lines Task Force Drafts Guidance Document on Nonadmitted Accident & Health Coverages

NAIC Update

An A&H Drafting Group was formed as a result of a nonadmitted and excess disability insurance presentation to the Surplus Lines (C) Task Force during the 2016 Fall National Meeting followed by a survey to the states. The TF Chair directed the drafting group to develop a guideline that would expand the "nonadmitted" definition to address certain excess A&H and disability coverages. The states of Colorado, Louisiana, Maryland and Wyoming volunteered for the drafting group.

It was reported that many state brokers are limited from writing higher limits of disability insurance and income protection coverages unless specifically allowed within state statutes or regulations. A completed state survey indicated that a number of states allow nonadmitted excess A&H or disability based on permissible coverages specified with state statute and, in some cases, referenced on export lists. The drafting group made a plan to gather state statute information and tapped into some additional resources to help with its research. 

On February 21, the Task Force will discuss a draft guideline based on this research. The document is intended to provide assistance to states updating laws and establishing procedures for allowing accident & health coverage to be procured in the nonadmitted market either independently or through surplus lines brokers.

For purposes of these guidelines, accident & health coverage includes, but is not limited to the following; short term medical, international major medical, excess disability, high risk disability and other similar coverages not available from admitted insurers. Policies such as those compliant with the Affordable Care Act are available in the admitted market and therefore deemed to be not contemplated by these guidelines.


The Task Force will receive public comment on the draft until March 14. If PCI members have any comment, question or concern about this draft, please email