§431:8-302  Surplus lines in solvent
insurers.  (a)  No surplus lines broker shall, either knowingly or without
reasonable investigation of the financial condition and general reputation of
the insurer, place insurance with financially unsound insurers or with insurers
engaging in unfair practices.



(b)  Before placing insurance with any
unauthorized insurer, the broker shall ascertain the financial condition of the
insurer and:



(1)  In the case of a foreign insurer, shall maintain
in the broker's office a current certificate, in proper form, from the
regulatory authority in the domicile of the unauthorized insurer, to the effect
that the insurer has capital and surplus, or its equivalent under the laws of
its domiciliary jurisdiction, which equals the minimum capital and surplus
requirements of this State for that kind of insurer as set out in article 3; or



(2)  In the case of an alien insurer, shall maintain
in the broker's office evidence of the financial responsibility of the
insurer.  Evidence satisfactory to the commissioner that the insurer maintains
in the United States an irrevocable trust fund in either a national bank or a
member of the Federal Reserve System in an amount not less than $5,400,000 for
the protection of all its policyholders in the United States consisting of
cash, securities, letters of credit, or of investments of substantially the
same character and quality as those which are eligible investments for the
capital and statutory reserves of authorized insurers writing like kinds of insurance
in this State, shall constitute prima facie evidence of responsibility.



Upon request by the commissioner, the broker shall
immediately submit to the commissioner the items described in this subsection.



(c)  The requirements of this section may be satisfied
by an insurer possessing less than the capital and surplus set forth in
subsection (b) upon an affirmative finding of acceptability by the
commissioner.  The finding shall be based upon such factors as quality of
management, capital and surplus of parent company, company underwriting profit
and investment income trends, and company record and reputation within the
industry.  In no event shall the commissioner make an affirmative finding of
acceptability when the surplus lines insurer's capital and surplus is less than
$500,000. [L 1987, c 347, pt of §2; am L 1993, c 205, §12; am L 2000, c 182,
§7]