Surplus Lines Law

Surplus lines insurance — coverage obtained from insurers that are not licensed to transact business in the state — is the subject of this act, which sets the conditions under which a risk may be exported to that market and identifies the coverages and classes exempt from those restrictions. It establishes eligibility standards for the insurers that may write such coverage, licenses the producers authorized to place it, and requires them to post a surety bond, keep records of coverages procured, disclose the insurer's unlicensed status on the contract and application, and file periodic and annual reports remitting premium taxes, with penalties for nonpayment and grounds for suspension or revocation of the license. The act also confirms that surplus lines contracts are valid and enforceable, fixes the insurer's liability for losses and unearned premiums, and provides a method for serving legal process on an insurer writing through this market.

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