§ 58-21-1 – Short title.

58-21-1. Short title. This Article shall be known and may be cited as the "Surplus Lines Act". (1985, c. 688, s. 1.)

§ 58-21-10 – Definitions.

58-21-10. Definitions. As used in this Article: (1) "Admitted insurer" means an insurer licensed to engage in the business of insurance in this State. (1a) "Affiliate" means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured. (1b) "Affiliated group" means any group of entities […]

§ 58-21-100 – Actions against surplus lines insurer; service of process.

58-21-100. Actions against surplus lines insurer; service of process. (a) A surplus lines insurer may be sued upon any cause of action arising in this State, under any surplus lines insurance contract made by it or evidence of insurance issued or delivered by the surplus lines licensee, pursuant to the procedure provided in G.S. 58-16-30. […]

§ 58-21-105 – Penalties.

58-21-105. Penalties. (a) Any surplus lines licensee who in this State represents or aids a nonadmitted domestic surplus lines insurer or a nonadmitted insurer in violation of this Article shall be guilty of a Class 1 misdemeanor. (b) In addition to any other penalty provided for in this section or otherwise provided by law, including […]

§ 58-21-11 – Home state.

58-21-11. Home state. (a) The provisions of this Article shall apply to those transactions in which North Carolina is the home state of the insured. (b) Except as provided in subsection (c) of this section, the term "home state" means, with respect to an insured, either of the following: (1) The state in which an […]

§ 58-21-15 – Placement of surplus lines insurance.

58-21-15. Placement of surplus lines insurance. Surplus lines may be placed by a surplus lines licensee if all of the following apply: (1) Each insurer is an eligible surplus lines insurer. (1a) Each insurer is authorized to write the kind of insurance in its domiciliary jurisdiction. (2) The full amount or kind of insurance cannot […]

§ 58-21-16 – Streamlined application for commercial purchasers.

58-21-16. Streamlined application for commercial purchasers. (a) A surplus lines licensee seeking to procure or place nonadmitted insurance in this State for an exempt commercial purchaser shall not be required to satisfy any requirement under G.S. 58-21-15 to make a due diligence search to determine whether the full amount or type of insurance sought by […]

§ 58-21-17 – Placement with alien insurers.

58-21-17. Placement with alien insurers. Nothing in this Article prohibits a surplus lines licensee from placing surplus lines insurance with, or procuring surplus lines insurance from, a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC. (2011-120, s. […]

§ 58-21-2 – Relationship to other insurance laws.

58-21-2. Relationship to other insurance laws. Except as provided in G.S. 58-21-21(c) and (g), unless surplus lines insurance, surplus lines licensees, nonadmitted domestic surplus lines insurers, or nonadmitted insurers are specifically referenced in a particular section of this Chapter, no sections contained in Articles of this Chapter other than this Article apply to surplus lines […]

§ 58-21-20 – Eligible surplus lines insurer required.

58-21-20. Eligible surplus lines insurer required. (a) A surplus lines licensee shall not place coverage with a nonadmitted insurer unless, at the time of placement, the surplus lines licensee has determined that the nonadmitted insurer satisfies the following: (1) Repealed by Session Laws 2011-120, s. 6, effective July 21, 2011. (2) Qualifies under one of […]

§ 58-21-21 – Nonadmitted domestic surplus lines insurer.

58-21-21. Nonadmitted domestic surplus lines insurer. (a) Notwithstanding any other law, a domestic insurer possessing minimum capital and surplus of at least fifteen million dollars ($15,000,000), pursuant to a resolution by its board of directors and on the written approval of the Commissioner, may be designated as a nonadmitted domestic surplus lines insurer. (b) A […]

§ 58-21-22 – Limitation on amount of salary protection insurance.

58-21-22. Limitation on amount of salary protection insurance. When salary protection insurance benefits are payable to an individual or an individual’s beneficiary, the amount of salary protection insurance plus the amount of any in-force disability income insurance, if the individual can obtain disability insurance from an admitted insurer, shall not exceed seventy-five percent (75%) of […]

§ 58-21-25 – Other nonadmitted insurers.

58-21-25. Other nonadmitted insurers. Only that portion of any risk eligible for export for which the full amount of coverage is not procurable from eligible surplus lines insurers may be placed with any other nonadmitted insurer that does not appear on the list of eligible surplus lines insurers published by the Commissioner pursuant to G.S. […]

§ 58-21-30 – Withdrawal of eligibility from a surplus lines insurer.

58-21-30. Withdrawal of eligibility from a surplus lines insurer. If at any time the Commissioner has reason to believe that an eligible surplus lines insurer: (1) Is in unsound financial condition or has acted in an untrustworthy manner, (2) Is no longer eligible under G.S. 58-21-20, (3) Has willfully violated the laws of this State, […]

§ 58-21-35 – Duty to file and retain reports.

58-21-35. Duty to file and retain reports. (a) Within 30 days after the placing of any surplus lines insurance, the surplus lines licensee shall file with the Commissioner or the stamping office, as appropriate, a report in a format prescribed by the Commissioner regarding the insurance and including the following information: (1) The name of […]

§ 58-21-4 – Nonadmitted and Reinsurance Reform Act duties.

58-21-4. Nonadmitted and Reinsurance Reform Act duties. (a) For the purposes of carrying out the provisions of the Nonadmitted and Reinsurance Reform Act of 2010, the Commissioner is authorized to utilize the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of an individual or an entity […]

§ 58-21-40 – Surplus lines regulatory support organization.

58-21-40. Surplus lines regulatory support organization. (a) The North Carolina Surplus Lines Association (NCSLA) shall serve as the regulatory support organization of surplus lines licensees and shall carry out the following functions: (1) Facilitate and encourage compliance by resident and nonresident surplus lines licensees with the laws of this State and the rules and regulations […]

§ 58-21-45 – Evidence of the insurance; changes; penalty.

58-21-45. Evidence of the insurance; changes; penalty. (a) As soon as surplus lines insurance has been placed, the producing broker or surplus lines licensee shall promptly deliver the policy to the insured. If the policy is not then available, the broker or licensee shall promptly deliver to the insured a certificate described in subsection (d) […]

§ 58-21-5 – Purposes; necessity for regulation.

58-21-5. Purposes; necessity for regulation. This Article shall be liberally construed and applied to promote its underlying purposes, which include all of the following: (1) Protecting persons in this State seeking insurance. (2) Permitting surplus lines insurance to be placed with reputable and financially sound nonadmitted domestic surplus lines insurers, nonadmitted insurers and exported from […]

§ 58-21-50 – Duty to notify insured.

58-21-50. Duty to notify insured. No contract of insurance placed by a surplus lines licensee under this Article shall be binding upon the insured and no premium charged therefor shall be due and payable until the producing broker or surplus lines licensee notifies the insured in writing, a copy of which shall be maintained by […]