NC S321

Authorizes the Insurance Commissioner to use the NAIC national insurance producer database for licensing surplus lines producers and to contract with nongovernmental entities for ministerial functions including fee collection and premium tax administration.

Creates streamlined application process for exempt commercial purchasers allowing surplus lines placement without diligence search requirements if licensee discloses availability of admitted market insurance and purchaser requests nonadmitted coverage in writing.

Defines "exempt commercial purchaser" to include entities with $100,000+ annual commercial insurance premiums and meeting criteria such as $20 million net worth, $50 million revenue, 500+ employees, or $30 million annual budget for nonprofits.

Modifies surplus lines tax to apply only to insureds for whom North Carolina is the home state and allows state to retain tax revenue to the extent other states have not entered into compact or reciprocal allocation procedures.

Updates risk retention group definition to conform to federal law regarding ownership structure and clarifies that nonadmitted insurers exclude risk retention groups from coverage.