§ 33-2-1509 — Applicability Of Minimum Standards

33-2-1509 . Applicability of minimum standards. (1) The provisions of 33-2-1510 apply if, in any calendar year, the aggregate amount of gross written premiums on business placed with a controlled insurer by a controlling producer is equal to or greater than 5% of the admitted assets of the controlled insurer, as reported in the controlled insurer's quarterly statement filed as of September 30 of the prior year.
(2) Notwithstanding the provisions of subsection (1), the provisions of 33-2-1510 do not apply if:
(a) the controlling producer:
(i) does not receive compensation based upon the amount of premiums written in connection with the insurance and places insurance only with:
(A) the controlled insurer; or
(B) the controlled insurer and a member or members of the controlled insurer's holding company system or the controlled insurer's parent, affiliate, or subsidiary; and
(ii) accepts insurance placements only from nonaffiliated subproducers and not directly from insureds; and
(b) except for insurance business written through a residual market facility, the controlled insurer accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.

Legislative History

En. Sec. 5, Ch. 596, L. 1993.