§ 58-32-24 — Ineligibility of surplus line insurer because of financial condition--Order of director--Grounds.

The insurer with which surplus line insurance is placed shall be in compliance with either subdivision 58-32-22(1), (2), or (3) and not be ineligible as a surplus line insurer by order of the director received by or known to the broker. The director may issue such an order of ineligibility if the director finds, after a hearing conducted pursuant to chapter 1-26 , that the insurer: (1) Does not meet the requirements of §§ 58-32-21 to 58-32-25 , inclusive; (2) Has without just cause refused to pay claims arising under its contracts in the United States or has otherwise conducted its affairs in such manner as to result in injury or loss to the insuring public of the United States; (3) Has failed to file the annual statement required in § 58-32-16.1 ; (4) Has failed to provide information within twenty days of a request from the division; (5) Has utilized surplus lines brokers who were not properly licensed in this state; or (6) Has failed, within thirty days after notice, to provide the name of the broker that placed the insurance and the name of the insured.

Legislative History

SL 1966, ch 111, ch 11, § 6 (2) (d); SL 1990, ch 407, § 3; SL 2000, ch 249, § 1; SL 2002, ch 243, § 1.