Surplus Lines ‘Diligent Effort’ Requirement Repealed Oct. 1
Thanks to the hard work of Big I Connecticut members, Connecticut insurance producers and surplus lines brokers are no longer subject to a surplus lines “diligent effort” requirement as of October 1, 2026. The change was enacted in last spring’s legislative session and signed into law in June. This reform was a major legislative priority for Big I Connecticut.
Under prior law, producers and surplus lines brokers could not obtain coverage from an insurer not licensed in Connecticut without first obtaining and documenting declinations from at least three licensed insurers. The new law repeals that requirement and permits the state’s insurance commissioner to require surplus lines brokers to annually report aggregate policy information and the locations of real property insured under these policies.
Big I Connecticut members’ consistent advocacy and direct engagement with policymakers played a central role in getting this law changed. During the Big I Connecticut Morning at the Capitol on March 31, members held a well-attended roundtable with Insurance & Real Estate Committee Co-Chair, Rep. Kerry Wood, and Insurance Commissioner Josh Hershman. Members shared real-world examples from their agencies and emphasized how the requirement affects customers, helping to keep the issue front and center at a key point in the session.
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