What is the surplus lines stamping fee paying for? Rusty Shackleford asked 4 weeks ago
What is the surplus lines stamping fee paying for?

Can someone explain the purpose of California’s stamping fee for surplus lines insurance? Specifically, what does the Surplus Line Association of California use the stamping fee for, and how does charging the policyholder this fee benefit the general public?

I noticed this 0.18% stamping fee on my homeowners policy, but when I looked up the SLA organization, they look like a private organization. Is paying the stamping fee required for surplus lines insurance in California, or is it optional? It seems like the general public is paying into this private organization?

1 Answers
Answer for What is the surplus lines stamping fee paying for? United Policyholders Staff answered 4 weeks ago
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Hi Rusty,

Yes. The stamping fee is a required charge on California surplus lines policies and is generally passed on to policyholders.

Although the Surplus Line Association (SLA) of California is a private nonprofit organization rather than a state agency, California law authorizes it to perform certain functions that support oversight of the surplus lines market, including reviewing filings, maintaining transaction records, and assisting regulatory compliance efforts. The stamping fee funds those activities.

Some consumers question why a mandatory fee is paid to a private organization. The state’s position is that the SLA performs regulatory-support functions that help monitor the surplus lines market and ensure compliance with California law. Consumers generally cannot opt out of the fee when purchasing a surplus lines policy.

The stamping fee is separate from California’s surplus lines premium tax, which is paid to the state.

Hope this helps! Lexi