Legislative declaration.

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(1) The general assembly finds and declares that disability, property, and casualty insurance transactions with nonadmitted insurers are so affected with a public interest as to require regulation, taxation, supervision, and control of such transactions and matters relating thereto, as provided in this article 5, in order to:

  1. Protect the insureds and claimants of this state in transactions involving the purchaseof insurance from insurers not authorized to transact business in this state;

  2. Provide for the public, except for transactions related to the diligent effort requirements of this article for exempt commercial policyholders, as defined pursuant to section 10-4-1402 and rules adopted by the commissioner pursuant to that section, to the extent that insurance is not procurable from admitted insurers, orderly, reasonable, and regulated access to such insurance from eligible nonadmitted insurers through qualified, licensed, and supervised surplus line agents and brokers;

  3. Protect the revenues of this state;

  4. Protect regulated, admitted insurers from unregulated and unfair competition by nonadmitted insurers;

  5. Regulate and supervise the effectuation of surplus lines insurance in accordance withthe laws of this state and federal law, including the federal "McCarran-Ferguson Act"; and (f) Maintain reliable insurance markets.

Source: L. 81: Entire section added, p. 537, § 1, effective January 1, 1982. L. 95: IP(1), (1)(b), and (1)(e) amended, p. 491, § 7, effective May 16. L. 99: (1)(b) amended, p. 388, § 9, effective January 15, 2000. L. 2012: (1)(b) amended, (HB 12-1215), ch. 104, p. 355, § 9, effective August 8. L. 2017: IP(1) amended, (SB 17-274), ch. 334, p. 1788, § 1, effective August 9.

Cross references: For the McCarran-Ferguson Act, see 59 Stat. 33, 15 U.S.C. §§ 1011 to 1015.


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