What is the purpose of a surplus lines stamp?

The purpose of a surplus lines stamp is to document and verify the transaction of surplus lines insurance. This stamp acts as a formal acknowledgment that the insurance policy has been placed through a surplus lines insurer, which typically provides coverage that may not be available through standard markets. It ensures compliance with regulatory requirements, helping to confirm that the transactions are legitimate, properly documented, and that the required surplus lines taxes are accounted for.

This mechanism is vital for maintaining clear records of surplus lines transactions, thereby enabling regulators to monitor the market and ensure that all aspects of the surplus lines business are conducted in alignment with state regulations. The presence of a stamp serves as proof that the transaction has adhered to the necessary legal and regulatory frameworks governing surplus lines insurance in Pennsylvania.