Section 3-326 – Delivery of False Binder or Cover Note Prohibited
(a) A surplus lines broker may not: (1) knowingly or negligently deliver a false binder or cover note; or (2) fail to notify the insured promptly of any material change with respect to surplus lines insurance by delivery to the insured of a substitute binder or cover note as provided in § 3-321 of this subtitle. (b) A violation […]
Section 3-327 – Short Title
This subtitle is the Surplus Lines Insurance Law.
Section 3-316.1 – Reinstatement of Certificate of Qualification
(a) On or before September 30 of the renewal year, a person whose surplus lines broker’s certificate of qualification has expired may reinstate the expired certificate of qualification by: (1) filing with the Commissioner the appropriate reinstatement application; (2) paying to the Commissioner the applicable reinstatement fee required under subsection (b) of this section; and (3) complying with the […]
Section 3-317 – Suspensions and Revocations
(a) The Commissioner may suspend or revoke the certificate of qualification of a surplus lines broker: (1) if the surplus lines broker fails to file the report required by this subtitle; (2) if the surplus lines broker fails to remit the tax required by this subtitle; (3) if the surplus lines broker fails to keep records required by this […]
Section 3-318 – Approval of Surplus Lines Insurer
(a) The Commissioner may not approve an insurer as a surplus lines insurer unless the insurer: (1) is authorized in its domiciliary jurisdiction to write the type of insurance it seeks to write; (2) has capital and surplus, or their equivalent under the laws of its domiciliary jurisdiction, equal to the greater of: (i) the minimum capital and surplus […]
Section 3-319 – Placement of Surplus Lines Insurance Prohibited
(a) A surplus lines broker may not place surplus lines insurance with an unauthorized insurer that: (1) has not been approved by the Commissioner as a surplus lines insurer in accordance with § 3–318 of this subtitle; (2) for an insurer not domiciled in the State, has not qualified under § 3–303 of this subtitle; (3) has been determined […]
Section 3-320 – Receipt of Premium by Surplus Lines Broker
(a) In any question that arises under the coverage between an unauthorized insurer and the insured, the unauthorized insurer is deemed to have received the premium due it for surplus lines insurance if: (1) the unauthorized insurer has assumed a surplus lines risk under this subtitle; and (2) the surplus lines broker who placed the surplus lines insurance […]
Section 3-321 – Delivery of Policy, Binder, or Cover Note
(a) (1) On placing surplus lines coverage, a surplus lines broker promptly shall deliver to the insured: (i) the policy issued by the insurer; or (ii) if the policy is not available, a binder or cover note that shows: 1. the subject, coverage, conditions, and term of the insurance; and 2. the name and address of the insurer. (2) If a direct […]
Section 3-322 – Records
(a) Each surplus lines broker shall keep separate records and accounts of all business transacted under the surplus lines broker’s certificate of qualification, including copies of: (1) any daily report made by the surplus lines broker; and (2) each binder or cover note delivered by the surplus lines broker. (b) The records described by subsection (a) of this section […]
Section 3-324 – Premium Receipts Tax on Surplus Lines Insurance
(a) This section does not apply to insurance of risks of the State or a political subdivision of the State. (b) The premiums charged for surplus lines insurance are subject to a premium receipts tax of 3% on all gross premiums, less any returned premiums, charged for surplus lines insurance. (c) For policies effective before July 21, 2011: […]