How do I complete a California Diligent Effort Form (SL-2)?
Overview
Agents are required to perform due diligence in the admitted market (submit to three carriers) before pursuing the Excess and Surplus (E&S) market. If you are binding business in California, the state requires an SL-2 form—also known as a Diligent Effort Form—for all surplus lines policies.
The SL-2 form informs the state that you attempted to place coverage with admitted carriers, but they declined. It is required for every binding in California that uses surplus lines insurance.
Follow these tips to avoid a rejected form:
Double-check that all three declinations are from this list of approved admitted carriers
Don’t forget to sign and date the form
Upload the completed form when binding
Use our example form here for reference
Step-by-Step Instructions
Here's a simple, step-by-step guide to get it right the first time:
Get the SL-2 Form : Use the official version from the CA Department of Insurance or use the blank one we provide during the bind process.
Fill Out Required Information: Make sure to complete all sections. Do NOT leave any required field blank. Incomplete forms can result in your bind being rejected.
Section A: Producer Info
Line 1: Name of the licensed producer
Line 2: Your California license number
Line 3: Phone number
Section B: Insured Info
Name of the business or person getting coverage
Address and phone number
Section C: Diligent Effort: You must list three approved admitted carriers
Please be sure to include a month and year for each declination. CA will not accept dates after the effective date of the policy.
Please note that you cannot list yourself as the contact who obtained the declination if you are the one completing the form.
Please use this list of approved admitted carriers in the state of CA. Note that CA only accepts admitted carriers from this list on their SL-2 form.
If you do not have a full name AND phone number of the declining carrier’s contact, please include a full website instead. This is the surest way to ensure your form is approved by the state.
Please note that this is the most common section leading to rejected subjectivities, so please be sure to fill out all of the information completely.
Section D: Signature
You must sign and date the form before binding
Electronic signatures are accepted. If you choose not to use our e-signature option, a digital signature with an accompanying audit trail is required. Manual (wet) signatures do not require an audit trail.
The same person who completes the form needs to sign it
Additional Resources
Surplus Line Association of California (SLA) Diligent Search Report Instructions
FAQs
Do I have to list three carriers?
Yes. California law requires proof that you attempted to place at least three admitted markets before using a surplus lines market. If fewer than three exist, write “N/A” and explain why.
What’s an “admitted” carrier?
An admitted carrier is approved and regulated by the California Department of Insurance. You cannot use other surplus lines markets in this section.
Can I reuse the same form for multiple quotes?
No. Each SL-2 form is specific to the insured and the policy. Always fill out a new one per bind.
Who signs the form?
The same person who completes the form/the licensed producer, must sign it. This confirms you made the effort to find admitted coverage first.
Where do I send the SL-2 once complete?
Upload it directly during the Pathpoint bind process. We’ll include it with the surplus lines filings.
Can I use the SL-2 for other states?
No, this form is only to be used for California business.