(1) The policy or policies of insurance provided in this part shall be obtained by the state treasurer subject to the approval of the board of claims. Notwithstanding the Surplus Lines Insurance Act, compiled in title 56, chapter 14, or any other law to the contrary, the state treasurer, with the approval of the board of claims, shall consider proposals from admitted carriers and nonadmitted surplus lines carriers. In order for nonadmitted carriers to be eligible for consideration under this section, at least two (2) admitted carriers must have declined to submit a proposal, and the nonadmitted carriers shall: Have a minimum A.M. Best financial strength rating of “A-” and an A.M. Best financial size category of no less than “VI”, or such other A.M. Best rating as may be established by the board of claims provided that the financial strength rating shall not be less than “A-” and the A.M. Best financial size category shall not be less than “VI”; and
(2) Be a member of an insurance holding company system, as defined in § 56-11-101(b), that has at least one (1) affiliate carrier admitted in this state as a property or casualty insurer.
(3) Should A.M. Best change or amend its rating methodology, then the board of claims shall adopt a minimum rating requirement that is equivalent to the rating as stated in subdivision (a)(1)(A). The state treasurer shall place the insurance directly with the companies without policies being countersigned notwithstanding § 56-2-409.
(4) The state treasurer shall make periodic reports to the fiscal review committee of the general assembly and to the state building commission concerning the operations of the insurance program.
Acts 2013, ch. 403, § 83 provided that the act, which transferred former title 12, ch. 3, part 9 to this part, shall apply to contracts entered into or renewed on and after July 1, 2013.
Title 56, chapter 14, part 1 referenced in (a)(1) was renumbered as title 56, chapter 14 by the authority of the code commission in 2016.