§ 23-65-310 — Surplus lines insurance in solvent insurers

(a) A surplus lines broker shall place surplus lines insurance only with insurers that have been approved by the Insurance Commissioner. (b) (1) The commissioner may maintain a list of approved foreign and alien surplus lines insurers in addition to those alien insurers maintaining status on the current National Association of Insurance Commissioners' nonadmitted insurers' quarterly listing. (2) The approved list shall not contain: (A) An insurer that is not licensed in at least one (1) state of the United States for the kind of insurance involved; (B) A stock insurer having capital and surplus amounting to less than three million dollars ($3,000,000); (C) A type of insurer, other than stock insurers, having surplus of less than three million dollars ($3,000,000); (D) (i) An alien insurer, unless: (a) The insurer has an established and effective trust fund within the United States administered by a recognized financial institution and held for the benefit of its policyholders; and (b) The trust fund is in the amount of not less than one million dollars ($1,000,000). (ii) (a) The broker may place casualty insurance with an alien insurer or a pool of alien insurers having combined capital and surplus of five million dollars ($5,000,000) or more, so long as the insured signs an affidavit accepting the insurance. (b) The affidavit shall include a statement that the insurance is not available to him or her elsewhere. (iii) The alien insurer shall: (a) Annually report the location and balance of the trust fund to the commissioner as the commissioner prescribes; and (b) Report to the commissioner any change in the location of the trust fund; (E) An insurer owned or controlled by a political sovereign or an agency of a political sovereign; or (F) (i) An insurer that does not maintain on deposit under § 23-63-901 et seq. eligible securities having a market value at all times of at least one hundred thousand dollars ($100,000) conditioned on the payment of creditors or obligees of the insurer in this state and the prompt payment of all claims arising and accruing to any persons during the term of the securities under a policy issued by the insurer. (ii) This subdivision (b)(2)(F) does not apply to foreign and alien surplus lines insurers as of July 21, 2011, if the requirements of the Nonadmitted and Reinsurance Reform Act of 2010, Pub. L. No. 111-203, as it existed on January 1, 2013, are met. (c) Upon receipt of a written request from the commissioner, an insurer shall promptly furnish to the commissioner information concerning its transactions or affairs.

Legislative History

Amended by Act 2013, No. 355,§ 9, eff. 8/16/2013. Amended by Act 2013, No. 355,§ 8, eff. 8/16/2013. Acts 1959, No. 148, § 196; 1961, No. 466, § 10; 1973, No. 66, § 7; 1977, No. 789, § 5; 1981, No. 809, § 4; 1983, No. 522, §§ 25, 26; A.S.A. 1947, § 66-2916; Acts 1989, No. 772, §§ 7, 8; 2011, No. 1055, § 2.