§431:8-314  Surplus lines advisoryorganizations.  (a)  An advisory surplus lines organization of surpluslines brokers may be formed to:

(1)  Facilitate and encourage compliance by itsmembers with the laws of this State and the rules and regulations of thecommissioner relative to surplus lines insurance;

(2)  Provide means for the examination, which shallremain confidential, of all surplus lines coverage written by its members todetermine whether such coverages comply with such laws and regulations;

(3)  Communicate with organizations of admittedinsurers with respect to the proper use of the surplus lines market; and

(4)  Receive and disseminate to its membersinformation relative to surplus lines coverages.

(b)  Every such advisory organization shallfile with the commissioner:

(1)  A copy of its constitution, its articles ofagreement or association or its certificate of incorporation;

(2)  A copy of its bylaws, rules and regulationsgoverning its activities;

(3)  A current list of its members;

(4)  The name and address of its authorized residentagent upon whom notices or orders of the commissioner or processes issued atthe commissioner's direction may be served, and

(5)  An agreement that the commissioner may examinesuch advisory organization in accordance with the provisions of subsection (c).

(c)  The commissioner shall, at least once inevery five years, make or cause to be made an examination of each such advisoryorganization.  The reasonable cost of any such examination shall be paid by theadvisory organization upon presentation to it by the commissioner of a detailedaccount of each cost.  The officers, managers, agents, and employees of suchadvisory organization may be examined at any time, under oath, and shallexhibit all books, records, accounts, documents, or agreements governing itsmethod of operation.  The commissioner shall furnish two copies of theexamination report to the advisory organization examined and shall notify suchorganization that it may, within twenty days thereof, request a hearing on thereport or on any facts or recommendations therein.  If the commissioner findssuch advisory organization or any of its members to be in violation of thispart, the commissioner may issue an order requiring the discontinuance of suchviolation. [L 1987, c 347, pt of §2]