Broker's duty to notify insured

Checkout our iOS App for a better way to browser and research.

§431:8-307 Broker's duty to notify insured. No contract of insurance placed by a surplus lines broker under this part and no premium charged therefor shall be due and payable until the surplus lines broker, when business is originated by a surplus lines broker, or the producer, when business is referred to a surplus lines broker from a licensed producer, has notified the insured in writing that:

(1) The insurer with which the surplus lines broker placed the insurance is not licensed by this State and is not subject to its supervision; and

(2) In the event of the insolvency of the surplus lines insurer, losses will not be paid by any of the State's insurance guaranty funds.

A copy of the notice shall be maintained by the broker with the records of the contract and available for examination.

Nothing in this section shall nullify any agreement by any insurer to provide insurance. [L 1987, c 347, pt of §2; am L 2002, c 155, §16; am L 2003, c 212, §46]


Download our app to see the most-to-date content.