(a) A licensed surplus lines broker may originate surplus lines business himself or herself, or may accept such business from any other originating producer duly licensed as to the kind or kinds of insurance involved and may compensate such producer therefor.

(b) No originating producer shall knowingly misrepresent to the surplus lines broker any material fact involved in any such insurance transaction or in the eligibility of the risk for placement with a surplus lines broker. (Added 1979, No. 50, § 2; amended 1979, No. 197 (Adj. Sess.), § 9; 2001, No. 97 (Adj. Sess.), § 19.)