Every surplus lines insurer is licensed and regulated in their home state. They submit to the jurisdiction of the policyholder's home state either directly or indirectly. All states maintain a list of the approved E&S lines carriers. Insurance policies can only be formulated by the companies in the approved lists.
The surplus lines brokers are also licensed and regulated in the policyholder's home state. The brokers are task with ascertaining the solvency of the E&S lines carrier, complying with surplus lines tax regulations and providing specific statutory notices.