(a) No surplus lines agent shall place any coverage with any unauthorized insurer that is not then an eligible surplus lines insurer as provided under this section.
(b) No unauthorized insurer shall be or become an eligible surplus lines insurer, unless made eligible by the commissioner in accordance with the following conditions:
(1) Eligibility of the insurer must be requested in writing by a licensed surplus lines agent;
(2) The insurer must be currently an authorized insurer in the state or country of its domicile as to the kind or kinds of insurance proposed to be so placed, and must have been such an insurer for not less than the three (3) years next preceding. The three-year provision does not apply to an insurer that is:
(A) The wholly owned subsidiary of an eligible surplus lines insurer;
(B) The wholly owned subsidiary of an insurance company admitted and authorized to do business in this state;
(C) The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for being an eligible surplus lines insurer in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years; or
(D) The wholly owned subsidiary of a holding company authorized to conduct business in this state, which also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors of an insurance company admitted and authorized to do business in this state;
(3) Before granting eligibility, the requesting surplus lines agent or the insurer shall furnish the commissioner with a duly authenticated copy of its current annual financial statement in the English language and with all monetary values in the statement expressed in United States dollars, at an exchange rate, in the case of statements originally made in the currencies of other countries, then current and shown in the statement, and with additional information relative to the insurer that the commissioner may request; and
(4) The insurer, if organized under the laws of a state of the United States, must have the capital or surplus required of a domestic insurer, transacting the same kind of business; or, if an alien insurer, must have and maintain in the United States a trust fund for the protection of all policyholders in the United States under terms deemed by the commissioner to be reasonably adequate, in the amount of not less than seven hundred fifty thousand dollars ($750,000). The capital or surplus as to policyholders or trust fund shall be represented by investments consisting of public obligations of the United States, or any state, county or municipality of the United States, or by other investments for like funds of like domestic insurers under §§ 56-3-302 56-3-304. The commissioner may accept a clean irrevocable letter of credit issued by a national bank of the United States with not less than one hundred million dollars ($100,000,000) in assets, in an approved form, as the whole or part of the corpus of the United States trust fund held for the protection of the United States policyholders.
(c) The insurer must be of good reputation as to the providing of service to its policyholders and the payment of losses and claims.
(d) No unauthorized insurer shall be eligible if the management is incompetent or untrustworthy, or so lacking in insurance company managerial experience as to make its proposed operation hazardous to the insurance buying public, or if the commissioner has good reason to believe that it is affiliated directly or indirectly through ownership, control, reinsurance transactions or other insurance or business relations, with any person whose business operations are or have been detrimental to policyholders, stockholders, investors, creditors or to the public.
(e) No unauthorized insurer shall be eligible if the insurer or its agents have failed to submit to any fine or penalty levied pursuant to statute. The commissioner may order revocation of insurance contracts issued by insurers that do not conform with the eligibility requirements of this section.
(f) No new or renewal surplus lines insurance shall be placed with any surplus lines insurer that requires as a condition precedent to writing the new or renewal insurance that the prospective insured or the insured place other insurance not eligible as surplus lines insurance with the surplus lines insurer.
(g) The commissioner shall, from time to time, publish a list of all currently eligible surplus lines insurers, and shall mail a copy of the list to each licensed surplus lines agent at the agent's office last of record with the commissioner.
(h) This section shall not be deemed to cast upon the commissioner any duty or responsibility to determine the actual financial condition or claims practices of any unauthorized insurer; and the status of eligibility, if granted by the commissioner, shall indicate only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the commissioner has no creditable evidence to the contrary.
(a) No surplus lines agent shall place any coverage with any unauthorized insurer that is not then an eligible surplus lines insurer as provided under this section.
(b) No unauthorized insurer shall be or become an eligible surplus lines insurer, unless made eligible by the commissioner in accordance with the following conditions:
(1) Eligibility of the insurer must be requested in writing by a licensed surplus lines agent;
(2) The insurer must be currently an authorized insurer in the state or country of its domicile as to the kind or kinds of insurance proposed to be so placed, and must have been such an insurer for not less than the three (3) years next preceding. The three-year provision does not apply to an insurer that is:
(A) The wholly owned subsidiary of an eligible surplus lines insurer;
(B) The wholly owned subsidiary of an insurance company admitted and authorized to do business in this state;
(C) The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for being an eligible surplus lines insurer in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years; or
(D) The wholly owned subsidiary of a holding company authorized to conduct business in this state, which also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors of an insurance company admitted and authorized to do business in this state;
(3) Before granting eligibility, the requesting surplus lines agent or the insurer shall furnish the commissioner with a duly authenticated copy of its current annual financial statement in the English language and with all monetary values in the statement expressed in United States dollars, at an exchange rate, in the case of statements originally made in the currencies of other countries, then current and shown in the statement, and with additional information relative to the insurer that the commissioner may request; and
(4) The insurer, if organized under the laws of a state of the United States, must have the capital or surplus required of a domestic insurer, transacting the same kind of business; or, if an alien insurer, must have and maintain in the United States a trust fund for the protection of all policyholders in the United States under terms deemed by the commissioner to be reasonably adequate, in the amount of not less than seven hundred fifty thousand dollars ($750,000). The capital or surplus as to policyholders or trust fund shall be represented by investments consisting of public obligations of the United States, or any state, county or municipality of the United States, or by other investments for like funds of like domestic insurers under §§ 56-3-302 56-3-304. The commissioner may accept a clean irrevocable letter of credit issued by a national bank of the United States with not less than one hundred million dollars ($100,000,000) in assets, in an approved form, as the whole or part of the corpus of the United States trust fund held for the protection of the United States policyholders.
(c) The insurer must be of good reputation as to the providing of service to its policyholders and the payment of losses and claims.
(d) No unauthorized insurer shall be eligible if the management is incompetent or untrustworthy, or so lacking in insurance company managerial experience as to make its proposed operation hazardous to the insurance buying public, or if the commissioner has good reason to believe that it is affiliated directly or indirectly through ownership, control, reinsurance transactions or other insurance or business relations, with any person whose business operations are or have been detrimental to policyholders, stockholders, investors, creditors or to the public.
(e) No unauthorized insurer shall be eligible if the insurer or its agents have failed to submit to any fine or penalty levied pursuant to statute. The commissioner may order revocation of insurance contracts issued by insurers that do not conform with the eligibility requirements of this section.
(f) No new or renewal surplus lines insurance shall be placed with any surplus lines insurer that requires as a condition precedent to writing the new or renewal insurance that the prospective insured or the insured place other insurance not eligible as surplus lines insurance with the surplus lines insurer.
(g) The commissioner shall, from time to time, publish a list of all currently eligible surplus lines insurers, and shall mail a copy of the list to each licensed surplus lines agent at the agent's office last of record with the commissioner.
(h) This section shall not be deemed to cast upon the commissioner any duty or responsibility to determine the actual financial condition or claims practices of any unauthorized insurer; and the status of eligibility, if granted by the commissioner, shall indicate only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the commissioner has no creditable evidence to the contrary.
(a) No surplus lines agent shall place any coverage with any unauthorized insurer that is not then an eligible surplus lines insurer as provided under this section.
(b) No unauthorized insurer shall be or become an eligible surplus lines insurer, unless made eligible by the commissioner in accordance with the following conditions:
(1) Eligibility of the insurer must be requested in writing by a licensed surplus lines agent;
(2) The insurer must be currently an authorized insurer in the state or country of its domicile as to the kind or kinds of insurance proposed to be so placed, and must have been such an insurer for not less than the three (3) years next preceding. The three-year provision does not apply to an insurer that is:
(A) The wholly owned subsidiary of an eligible surplus lines insurer;
(B) The wholly owned subsidiary of an insurance company admitted and authorized to do business in this state;
(C) The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for being an eligible surplus lines insurer in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years; or
(D) The wholly owned subsidiary of a holding company authorized to conduct business in this state, which also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors of an insurance company admitted and authorized to do business in this state;
(3) Before granting eligibility, the requesting surplus lines agent or the insurer shall furnish the commissioner with a duly authenticated copy of its current annual financial statement in the English language and with all monetary values in the statement expressed in United States dollars, at an exchange rate, in the case of statements originally made in the currencies of other countries, then current and shown in the statement, and with additional information relative to the insurer that the commissioner may request; and
(4) The insurer, if organized under the laws of a state of the United States, must have the capital or surplus required of a domestic insurer, transacting the same kind of business; or, if an alien insurer, must have and maintain in the United States a trust fund for the protection of all policyholders in the United States under terms deemed by the commissioner to be reasonably adequate, in the amount of not less than seven hundred fifty thousand dollars ($750,000). The capital or surplus as to policyholders or trust fund shall be represented by investments consisting of public obligations of the United States, or any state, county or municipality of the United States, or by other investments for like funds of like domestic insurers under §§ 56-3-302 56-3-304. The commissioner may accept a clean irrevocable letter of credit issued by a national bank of the United States with not less than one hundred million dollars ($100,000,000) in assets, in an approved form, as the whole or part of the corpus of the United States trust fund held for the protection of the United States policyholders.
(c) The insurer must be of good reputation as to the providing of service to its policyholders and the payment of losses and claims.
(d) No unauthorized insurer shall be eligible if the management is incompetent or untrustworthy, or so lacking in insurance company managerial experience as to make its proposed operation hazardous to the insurance buying public, or if the commissioner has good reason to believe that it is affiliated directly or indirectly through ownership, control, reinsurance transactions or other insurance or business relations, with any person whose business operations are or have been detrimental to policyholders, stockholders, investors, creditors or to the public.
(e) No unauthorized insurer shall be eligible if the insurer or its agents have failed to submit to any fine or penalty levied pursuant to statute. The commissioner may order revocation of insurance contracts issued by insurers that do not conform with the eligibility requirements of this section.
(f) No new or renewal surplus lines insurance shall be placed with any surplus lines insurer that requires as a condition precedent to writing the new or renewal insurance that the prospective insured or the insured place other insurance not eligible as surplus lines insurance with the surplus lines insurer.
(g) The commissioner shall, from time to time, publish a list of all currently eligible surplus lines insurers, and shall mail a copy of the list to each licensed surplus lines agent at the agent's office last of record with the commissioner.
(h) This section shall not be deemed to cast upon the commissioner any duty or responsibility to determine the actual financial condition or claims practices of any unauthorized insurer; and the status of eligibility, if granted by the commissioner, shall indicate only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the commissioner has no creditable evidence to the contrary.
