Nonadmitted Insurance Act

The act governs the placement of insurance with nonadmitted insurers — carriers not licensed to do business in the state — through licensed surplus lines producers, and requires that any coverage so placed go only to eligible, solvent insurers. It establishes a licensing regime for surplus lines licensees and imposes duties on them to file evidence of the insurance and supporting affidavits, to notify the insured of the coverage's nonadmitted status, to maintain records, and to report and pay tax on the business they export. It also addresses the legal standing of nonadmitted insurers — providing for service of process on them and for suits by and against them — and gives the regulator tools to enforce compliance, including hearings, withdrawal of an insurer's eligibility, penalties, and suspension, revocation, or nonrenewal of a licensee's license.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.