§ 27-10-25 — Acceptance and Placement of Surplus Line Business from Agents or Brokers; Per Policy Fee

Alabama § 27-10-25

• Jurisdiction: Alabama
• Title 27: Insurance
• Ch. 10: Unauthorized Insurers and Surplus Lines
• Art. 2: Surplus Line Insurance

Text

(a) A licensed surplus line broker may accept and place surplus line business for any insurance producer licensed in this state for the kind and class of insurance involved and may compensate the producer therefor. No producer shall knowingly misrepresent to the broker any material fact involved in any insurance or in the eligibility thereof for placement with an unauthorized insurer.
(b) Notwithstanding Section 27-12-17(b), a reasonable fee for each policy may be charged by the filing surplus lines broker for each policy placed in lawful compliance with Section 27-10-20. This per-policy fee shall be itemized separately to the customer before purchase, enumerated in the policy or a notice delivered with the policy, and is subject to the surplus line broker tax required under Section 27-10-31.

Legislative History

(Acts 1963, No. 521, p. 1112, §12; Acts 1971, No. 407, p. 707, §200; Act 2001-702, p. 1509, §15; Act 2024-71, §2.)