58-32-16. Impossibility of procuring coverage from authorized insurers--Procurement from unauthorized insurers.
If certain insurance coverages cannot be procured from authorized insurers, the coverages, hereinafter designated, surplus lines, may be procured from unauthorized insurers, subject to the conditions set forth in §§58-32-17 to 58-32-19, inclusive. The provisions of §§58-32-16 to 58-32-18, inclusive, do not apply to exempt commercial lines policyholders as defined in §§58-24-68 and 58-24-69 if:
(1)The broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
(2)The exempt commercial purchaser has subsequently requested in writing the broker to procure or place the insurance from a nonadmitted insurer.
Source: SL 1966, ch 111, ch 11, §4; SL 2011, ch 223, §2.