APPENDIX C
INDUSTRIAL INSURANCE – EXEMPTIONS
BY STATE
| State | Industrial Insured: Statutory Requirements |
Statutory Reference |
| Alabama | 1) Insurance procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums on all risks other than workers' compensation and group insurance; and 3) Minimum 25 employees. |
§27-10-20(2) |
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Alaska (1) |
An exempt commercial policyholder is an entity that has sufficient insurance buying expertise to negotiate with insurers in a largely unregulated environment and that meets any two of the following criteria: (1) has net worth of over $30 million; (2) has net revenues or sales of over $75 million; (3) has more than 300 employees per individual company or 800 per holding company aggregate; (4) procures its insurance through use of a risk manager, employed or retained; (5) collects annual aggregate premiums of over $250,000; (6) is a nonprofit or public entity with an annual budget or assets of at least $30 million; (7) is a municipality with a population of over 25,000. |
3 AAC 29.545 |
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| Arizona | 1) Insurance procured through full-time risk manager; and 2) Meets at least two of the following criteria: a) Minimum $100,000 aggregate annual gross premiums for insurance on all property and casualty risks; b) Minimum $10 million net worth; c) Minimum $25 million net revenues or sales; or d) Minimum 80 full-time employees per individual company or 100 full-time employees per holding company. |
§20-401.07(B) |
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| Arkansas (2) | 1) Insurance procured through full-time risk manager or insurance manager or utilizes the services of a regularly and continuously qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§23-63-1601(12) |
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| California (3) | 1) Employs at least 25 employees on average during the prior 12 months; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks other than workers’ compensation and health coverage; and 3) Insurance procured through full-time insurance manager or “continuously retained insurance consultant.” “Continuously retained insurance consultant” does not include: a) a) any agent or broker through whom the insurance is being placed; b) any subagent or subproducer involved in the transaction; or c) any agent or broker which is a business organization employing or contracting with any person mentioned in clauses (a) and (b). |
§1764.1(1) |
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| Colorado | 1) Insurance (excluding life and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant who does not receive commission or compensation for placing the risk; 2) Minimum $100,000 aggregate annual premiums on all risks; and 3) Minimum 100 full-time employees. |
§10-3-910(2) |
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| Connecticut | 1) Insurance procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; and 2) Minimum $50,000 aggregate annual premiums (excluding life, accident and health insurance). |
§38a-271(b)(6) |
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| Delaware (2) | 1) Insurance procured through full-time insurance manager or buyer; and 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§6902(14) |
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| District of Columbia |
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| Florida (2) | 1) Minimum $50 million gross assets and $20 million in unimpaired capital and surplus; § 628.903(1) 2) Insurance procured through full-time insurance manager or buyer or licensed property and casualty insurance agent, broker or consultant; 3) Minimum 100 full-time employees; and 4) Minimum $200,000 annual premiums for each line of insurance purchased from the industrial insured captive insurer, or minimum $75,000 annual premiums for any line of coverage excess of at least $25 million in the annual aggregate. The purchase of umbrella or general liability coverage excess of $25 million in the annual aggregate shall be deemed to be the purchase of a single line of insurance. |
§ 628.903(1) |
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| Georgia (2) | 1) Insurance procured through full-time insurance manager, risk manager or insurance buyer, or through licensed property and casualty agent, broker or counselor; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Meets one of the following criteria: a) Minimum 25 full-time employees; b) Minimum $3 million gross assets; or c) Minimum $5 million annual gross revenues. |
§33-41-2(5) |
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| Hawaii | No |
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| Idaho | No |
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| Illinois (4) | 1) Insurance (excluding life and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $100,000 aggregate annual premiums on all risks except for life and accident and health insurance; and 3) Meets one of the following criteria: a) Minimum 25 full time employees; b) Minimum $3,000,000 gross assets; or c) Minimum $5,000,000 annual gross revenues. |
5/121-2.08 |
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| Indiana | 1) Insurance procured through full-time insurance manager or buyer, or regularly retained and continuously qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§27-4-5-2(a)(8) |
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| Iowa | No |
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| Kansas (2) | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $50,000 aggregate annual premiums for the kinds of insurance procured; 3) Minimum 25 full-time employees; 4) Principal activity consists of the manufacture of a product or products; and 5) Minimum $10,000 contributed to the capital or surplus of the industrial insured captive insurance company that insures its risks. |
§40-4301(e) |
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| Kentucky (7) | 1) Insurance (excluding life and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; 3) Minimum 25 full-time employees; and 4) Qualified as an industrial insured as of July 1, 1999. |
§304.11-020(2)(a) |
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| Louisiana (5) |
Meets at least one of the following requirements:
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§23:1161 |
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| Maine (2) | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $25,000 aggregate annual premium for insurance on all risks; and 3) Minimum 25 full-time employees. |
§6701(6) |
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| Maryland | 1) Insurance procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $100,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§4-201(a) |
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| Massachusetts | No |
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| Michigan | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
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| Minnesota | No |
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| Mississippi | No |
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| Missouri | 1) Insurance (excluding life, health and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $100,000 aggregate annual premiums for insurance, excluding workers’ compensation premiums; and 3) Minimum 25 full-time employees. |
§375.786(1)(8) |
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| Montana (2) | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§33-28-101(11) |
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| Nebraska |
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§44-5502 |
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| Nevada (6) | 1) Minimum $1,000,000 aggregate annual property and casualty premiums (not including workers’ compensation or industrial insurance); and 2) Minimum 250 full-time employees. |
§680A.070(9) |
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| New Hampshire | 1) Insurance (excluding life and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $15,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§406-B:16 VI |
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| New Jersey | No |
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| New Mexico | 1) Insurance procured through full-time risk or insurance manager, or regularly and continuously qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§59A-15-2(B)(5) |
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| New York (2) | 1) Minimum $100 million net worth; 2) Member of a holding company system having minimum $100 million net worth; or 3) The metropolitan transportation authority and its statutory subsidiaries; or 4) A city with a population of one million or more. |
§7002(e) |
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| North Carolina | No |
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| North Dakota | 1) Insurance (excluding life and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§26.1-02-05(9) |
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| Ohio | No |
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Oklahoma (7) |
No |
§6470.2 §4202 |
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| Oregon | No |
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| Pennsylvania | Insured must meet at least three (3) of the following requirements: 1) Insurance procured through full-time risk manager or qualified risk management service; 2) Minimum $100 million gross sales; 3) Minimum 250 full-time employees; 4) Minimum $100 million assets; 5) Minimum $250,000 property and casualty insurance premiums (excluding employee benefits); and 6) Minimum 50% of total risk placed is outside of Pennsylvania. |
§40-15-110(a) |
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| Puerto Rico | No |
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| Rhode Island (8) | 1) Insurance procured through full-time insurance manager or buyer; (Relates to Captives) 2) Minimum $25,000 aggregate annual premiums; and 3) Minimum 25 full-time employees. |
§27-43-1(6) |
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| South Carolina (8) | 1) Insurance procured through full-time risk or insurance manager, or regularly and continuously qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§38-25-150(8) |
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| South Dakota | No |
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| Tennessee (8) | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§56-2-105(7) |
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| Texas | No |
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| Utah (2) | 1) Insurance procured through full-time risk manager or insurance manager, or regularly and continuously qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§31A-37-102(16) |
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| Vermont (8) | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§3368(a)(6) |
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| U.S. Virgin Islands | No. |
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| Virginia | 1) Insurance procured through full-time insurance manager or buyer or regularly and continuously retained licensed insurance consultant; 2) Minimum $100,000 aggregate annual premiums for insurance on all risks; (excluding life and annuity and accident and sickness); 3) Minimum 25 full-time employees; and 4) Minimum gross assets in excess of $3 million or annual gross revenues in excess of $5 million. |
§38.2-1039(D)(5) |
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| Washington | No |
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| West Virginia (2) | 1) Insurance procured through full-time insurance manager or buyer; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§33-31-1(11) |
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| Wisconsin | No |
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| Wyoming | 1) Insurance (excluding life and annuity contracts) procured through full-time insurance manager or buyer, or regularly and continuously retained qualified insurance consultant; 2) Minimum $25,000 aggregate annual premiums for insurance on all risks; and 3) Minimum 25 full-time employees. |
§26-12-101 |
(1)The Alaska legislature added language to its surplus lines laws in 2009 to extend the commercial policyholder exemption for surplus lines.
(2)“Industrial Insured” exemption recognized with respect to captive insurers only.
(3)“Industrial Insured” exemption recognized with respect to nonadmitted insurers only.
(4)“Industrial Insured” exemption also recognized in limited instances with respect to captive insurers (i.e., directors’ and officers’ liability insurance and bankers’ blanket bonds).
(5)“Industrial Insured” exemption recognized with respect to workers’ compensation insurance only.
(6)"Industrial Insured" exemption is restricted to excess liability insurance in excess of $25,000,000.
(7)"Industrial Insured" exemption does not apply to life and annuity products.
(8)"Industrial Insured" exemption recognized with respect to life insurance only.
(9)"Industrial Insured” exemption also recognized with respect to captive insurers.
(10)"The Industrial Insured" exemption in USVI was repealed in 2008.