Surplus line coverage

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  • (a) If certain insurance coverages cannot be procured from authorized insurers, such coverages, hereinafter designated as “surplus lines,” may be procured from unauthorized insurers subject to the following conditions:

    • (1) the insurance must be procured through a licensed surplus line broker; and

    • (2) the insurance must not be procurable, after diligent effort has been made to do so from among a majority of the insurers authorized to transact that kind of insurance in this territory and placing the insurance in an unauthorized insurer must not be for the purpose of securing a lower premium rate than would be accepted by any authorized insurer.

  • (b) Within 30 days after the procuring of any surplus line insurance, the surplus line broker must execute and shall file with the Commissioner:

    • (1) a written report, which shall be kept confidential and which shall include the following:

      • (A) the name and address of the insured;

      • (B) the identity of the insurer or insurers;

      • (C) a description of the subject and location of the risk;

      • (D) the amount of premium charged for the insurance; and

      • (E) such other pertinent information as the Commissioner may reasonably require; and

    • (2) an affidavit setting forth the facts referred to in subsection (a), paragraph (2), of this section. Such affidavit shall be open to public inspection.


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