CHAPTER 15.8. SURPLUS LINES PRODUCERS
IC 27-1-15.8
Chapter 15.8. Surplus Lines Producers
IC 27-1-15.8-1
Applicability of definitions
Sec. 1. The definitions in IC 27-1-15.6-2 apply throughout thischapter.
As added by P.L.132-2001, SEC.5.
IC 27-1-15.8-2
Other provisions applicable to licensure of surplus lines producers
Sec. 2. The following provisions of IC 27-1-15.6 apply tolicensure of surplus lines producers under this chapter:
(1) IC 27-1-15.6-5.
(2) IC 27-1-15.6-6.
(3) IC 27-1-15.6-8 through IC 27-1-15.6-13.
(4) IC 27-1-15.6-15 through IC 27-1-15.6-17.
(5) IC 27-1-15.6-21.
(6) IC 27-1-15.6-32 through IC 27-1-15.6-34.
As added by P.L.132-2001, SEC.5.
IC 27-1-15.8-3
Qualifications for license
Sec. 3. (a) A surplus lines producer may receive qualification fora license in one (1) or more of the kinds of insurance defined in Class2 and Class 3 of IC 27-1-5-1 from insurers that are authorized to dobusiness in one (1) or more states of the United States of Americabut are not authorized to do business in Indiana whenever, afterdiligent effort, as determined to the satisfaction of the department,the licensee is unable to procure the amount of insurance desiredfrom insurers authorized and licensed to do business in Indiana.
(b) An applicant for a surplus lines producer's license must belicensed in Indiana as an insurance producer qualified as to the lineor lines of insurance to be written.
As added by P.L.132-2001, SEC.5.
IC 27-1-15.8-4
Percent of gross premiums remitted to department; affidavit andfinancial statement filed with department
Sec. 4. (a) In addition to all other charges, fees, and taxes that maybe imposed by law, a surplus lines producer licensed under thischapter shall, on or before February 1 and August 1 of each year,collect from the insured and remit to the department for the use andbenefit of the state of Indiana an amount equal to two and one-halfpercent (2 1/2%) of all gross premiums upon all policies andcontracts procured by the surplus lines producer under the provisionsof this section during the preceding six (6) month period endingDecember 31 and June 30, respectively. The declarations page of apolicy referred to in this subsection must itemize the amounts of allcharges for taxes, fees, and premiums. (b) A licensed surplus lines producer shall execute and file withthe department of insurance on or before the twentieth day of eachmonth an affidavit that specifies all transactions, policies, andcontracts procured during the preceding calendar month, including:
(1) the description and location of the insured property or riskand the name of the insured;
(2) the gross premiums charged in the policy or contract;
(3) the name and home office address of the insurer whosepolicy or contract is issued, and the kind of insurance effected;and
(4) a statement that:
(A) the licensee, after diligent effort, was unable to procurefrom any insurer authorized to transact the particular class ofinsurance business in Indiana the full amount of insurancerequired to protect the insured; and
(B) the insurance placed under this chapter is not placed forthe purpose of procuring it at a premium rate lower thanwould be accepted by an insurer authorized and licensed totransact insurance business in Indiana.
(c) A licensed surplus lines producer shall file with thedepartment, not later than March 31 of each year, the financialstatement, dated as of December 31 of the preceding year, of eachunauthorized insurer from whom the surplus lines producer hasprocured a policy or contract. The insurance commissioner may, inthe commissioner's discretion, after reviewing the financial statementof the unauthorized insurer, order the surplus lines producer to cancelan unauthorized insurer's policies and contracts if the commissioneris of the opinion that the financial statement or condition of theunauthorized insurer does not warrant continuance of the risk.
(d) A licensed surplus lines producer shall keep a separate accountof all business transacted under this section. The account may beinspected at any time by the commissioner or the commissioner'sdeputy or examiner.
(e) An insurer that issues a policy or contract to insure a riskunder this section is considered to have appointed the commissioneras the insurer's attorney upon whom process may be served inIndiana in any suit, action, or proceeding based upon or arising outof the policy or contract.
(f) The commissioner may revoke or refuse to renew a surpluslines producer's license for failure to comply with this section.
(g) A surplus lines producer licensed under this chapter mayaccept and place policies or contracts authorized under this sectionfor an insurance producer duly licensed in Indiana, and maycompensate the insurance producer even though the insuranceproducer is not licensed under this chapter.
(h) If a surplus lines producer does not remit an amount due to thedepartment within the time prescribed in subsection (a), thecommissioner shall assess the surplus lines producer a penalty of tenpercent (10%) of the amount due. The commissioner shall assess afurther penalty of an additional one percent (1%) of the amount due
for each month or portion of a month that any amount due remainsunpaid after the first month. Penalties assessed under this subsectionare payable by the surplus lines producer and are not collectible froman insured.
As added by P.L.132-2001, SEC.5. Amended by P.L.160-2003,SEC.2; P.L.173-2007, SEC.15.