What is an Export List in Surplus Lines Insurance?

In the world of surplus lines insurance, the standard operating procedure involves a process known as the "diligent search." Generally, a surplus lines broker cannot place a risk with a non-admitted insurer unless they have first attempted to place it with admitted carriers and received a specific number of rejections (typically three). However, state regulators recognize that certain types of risks are virtually never written by the admitted market. To streamline commerce and reduce administrative burdens, many states maintain what is known as an Export List.

The Export List is an official roster of insurance coverages or risk classes that the state insurance commissioner has determined have no reasonable expectation of being placed in the admitted market. When a risk appears on this list, it is considered "pre-exported." This means the surplus lines broker can bypass the diligent search requirement and place the business directly with an eligible non-admitted insurer. For anyone studying for the complete Surplus Lines exam guide, understanding the mechanics of this list is critical for regulatory compliance questions.

The process for adding or removing items from the Export List is governed by state statute and managed by the Department of Insurance (DOI). In many jurisdictions, the Surplus Lines Association (SLA) plays a consultative role, monitoring market trends and providing data to the Commissioner regarding which coverages are consistently unavailable in the admitted market.

Typically, the Insurance Commissioner will hold annual or semi-annual public hearings. During these hearings, brokers, insurers, and trade associations can testify about current market conditions. If the evidence shows that a specific class of insurance is not available through admitted carriers, the Commissioner may issue an order to add that class to the Export List. Conversely, if admitted insurers begin offering a product that was previously on the list, the Commissioner may remove it to protect the admitted market's primacy. For those preparing with practice Surplus Lines questions, remember that the Commissioner has the final authority over these modifications.

While every state's Export List varies based on local market conditions, certain "hard-to-place" risks are frequently found across multiple jurisdictions. These risks often involve high levels of volatility, specialized technical knowledge, or catastrophic exposure that admitted carriers are unwilling to assume. Common examples include:

• Amusement Parks and Carnivals: High liability exposure and specialized safety requirements.
• Environmental/Pollution Liability: Long-tail risks and complex remediation costs.
• Cyber Liability: Rapidly evolving threats that some admitted markets may not yet be equipped to price.
• Demolition Contractors: High-risk physical damage and liability potential.
• Excess Liability: Coverage limits that exceed the capacity of standard market carriers.

Note: Even if a risk is on the Export List, the surplus lines broker must still ensure the insurer is an "eligible" non-admitted carrier as defined by state law and the Nonadmitted and Reinsurance Reform Act (NRRA).