515I.1 Purpose. 1. The purposes of this chapter are to do all of the following: a. Establish a system of regulation which will permit orderly access to surplus lines insurance in this state. b. Encourage admitted insurers to make new and innovative types of insurance available to consumers in this state. c. Protect persons seeking […]
515I.10 Independently procured surplus lines insurance — premium tax — penalty. 1. When this state is the home state of the insured, a person who directly procures, continues, or renews a surplus lines insurance policy or contract independently and without using a surplus lines insurance producer on properties, risks, or exposures located or to be […]
515I.11 Violations and penalties. 1. The commissioner may, after notice and a hearing, declare a surplus lines insurer ineligible to place surplus lines insurance in the state if at any time the commissioner has reason to believe that a surplus lines insurer meets any of the following conditions: a. Is in unsound financial condition or […]
515I.12 Cease and desist orders — civil and criminal penalties. 1. Upon a determination by the commissioner, after a hearing conducted pursuant to chapter 17A, that a surplus lines insurance producer, an eligible surplus lines insurer, or a nonadmitted insurer has violated a provision of this chapter, the commissioner shall reduce the findings of the […]
515I.13 Insurance policy or contract remains valid. A policy or contract of insurance issued or delivered by an eligible surplus lines insurer or a nonadmitted insurer which is otherwise valid and contains a condition or provision not in compliance with the requirements of this chapter is not thereby rendered invalid but shall be construed and […]
515I.13A Scope of operation. This chapter applies only to transactions when this state is the home state of the applicant or the insured. 2012 Acts, ch 1025, §14, 22
515I.14 Severability. If any provision of this chapter, or the application of the provision of this chapter to any person or circumstance, is held invalid, the remainder of the chapter and the application of the provision to persons or circumstances other than those as to which it is held invalid, shall not be affected by […]
515I.15 Rulemaking authority. The commissioner shall adopt rules pursuant to chapter 17A to implement the purposes of this chapter. 2012 Acts, ch 1025, §16, 22
515I.2 Definitions. As used in this chapter, unless the context otherwise requires: 1. “Admitted insurer” means an insurer licensed to do insurance business in this state. 2. “Affiliate” means, with respect to an insurer, any entity that controls, is controlled by, or is under common control with the insurer. 3. “Affiliated group” means any group […]
515I.3 Placement of surplus lines insurance business with nonadmitted insurers and domestic surplus lines insurers. 1. Surplus lines insurance may be placed by a surplus lines insurance producer with a nonadmitted insurer or domestic surplus lines insurer only if all of the following requirements are met: a. The proposed nonadmitted insurer or domestic surplus lines […]
515I.4 Requirements for eligible surplus lines insurers. 1. When this state is the home state of the insured, a nonadmitted insurer shall not place any surplus lines insurance business in this state unless the insurer has been approved for such activity by the commissioner. A nonadmitted insurer seeking to qualify as an eligible surplus lines […]
515I.4A Requirements for domestic surplus lines insurers. 1. An insurer that is domiciled in this state may apply to the commissioner for licensure as a domestic surplus lines insurer if all of the following requirements are met: a. The insurer possesses policyholder surplus of the greater of either fifteen million dollars or three hundred percent […]
515I.5 Duties of surplus lines insurance producers. 1. A surplus lines insurance producer shall not issue or deliver any evidence of insurance or purport to insure or represent that insurance will be or has been written by an eligible surplus lines insurer, unless the producer has authority from the insurer to bind the risk to […]
515I.6 Actions against eligible surplus lines insurers. An eligible surplus lines insurer may be sued upon a cause of action arising in this state under a surplus lines insurance policy or contract placed by the insurer or upon evidence of insurance placed by the insurer and issued or delivered in this state by a surplus […]
515I.7 Effect of payment to surplus lines insurance producer. A payment of premium to a surplus lines insurance producer acting for a person other than the producer in procuring, continuing, or renewing any policy or contract of surplus lines insurance procured under this chapter shall be deemed to be payment to the eligible surplus lines […]
515I.8 Referrals to surplus lines insurance producers. A surplus lines insurance producer may accept referrals to place surplus lines insurance from any other licensed insurance producer and the surplus lines insurance producer may compensate the referring insurance producer for the referral. 2012 Acts, ch 1025, §8, 22
515I.9 Exempt commercial purchasers. A surplus lines insurance producer seeking to procure or place surplus lines insurance in this state for an exempt commercial purchaser is not required to make a diligent search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from an admitted […]
