§ 26-11-104 — Conditions for export

Wyoming § 26-11-104

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 11: NONADMITTED INSURANCE

Text

(a) If certain insurance coverages cannot be procured from
admitted insurers, those coverages, designated in this chapter
as "surplus lines", may be procured from nonadmitted insurers,
subject to the following conditions:
(i) The insurance shall be procured through a
licensed surplus lines broker;
(ii) The full amount of insurance required is not
procurable, after diligent effort has been made by the insurance
producer to do so, from among the admitted insurers authorized
to transact and actually writing that kind and type of insurance
in this state, and the amount of insurance exported shall be
only the excess over the amount procurable from admitted
insurers. The surplus lines broker shall verify that a properly
conducted diligent effort search was performed and documented as
prescribed by the commissioner;
(iii) The insurance shall not be exported for the
purpose of securing advantages either as to:
(A) A lower premium rate than would be accepted
by an admitted insurer; or
(B) Terms of the insurance contract.
(iv) The insurer is an eligible nonadmitted insurer;
(v) The insurer is authorized to write the kind of
insurance in its domiciliary jurisdiction;
(vi) All other requirements of this chapter are met.
(b) A surplus lines broker is not required to make a
diligent effort search to determine whether the full amount or
type of insurance can be obtained from admitted insurers when
the broker is seeking to procure or place nonadmitted insurance
for an exempt commercial purchaser provided:
(i) The broker procuring or placing the surplus lines
insurance has disclosed to the exempt commercial purchaser that
such insurance may or may not be available from the admitted
market that may provide greater protection with more regulatory
oversight; and
(ii) The exempt commercial purchaser has subsequently
requested in writing for the broker to procure or place such
insurance from a nonadmitted insurer.
(c) For purposes of this section, the term "exempt
commercial purchaser" means any person purchasing commercial
insurance that, at the time of placement, meets the following
requirements:
(i) The person employs or retains a qualified risk
manager to negotiate insurance coverage;
(ii) The person has paid aggregate nationwide
commercial property and casualty insurance premiums in excess of
one hundred thousand dollars ($100,000.00) in the immediately
preceding twelve (12) months;
(iii) The person meets at least one (1) of the
following criteria:
(A) The person possesses a net worth in excess
of twenty million dollars ($20,000,000.00) as adjusted pursuant
to paragraph (iv) of this subsection;
(B) The person generates annual revenues in
excess of fifty million dollars ($50,000,000.00) as adjusted
pursuant to paragraph (iv) of this subsection;
(C) The person employs more than five hundred
(500) full-time or full-time equivalent employees per individual
insured or is a member of an affiliated group employing more
than one thousand (1,000) employees in the aggregate;
(D) The person is a not-for-profit organization
or public entity generating annual budgeted expenditures of at
least thirty million dollars ($30,000,000.00) as adjusted
pursuant to paragraph (iv) of this subsection;
(E) The person is a municipality with a
population in excess of fifty thousand (50,000) individuals.
(iv) Effective on January 1, 2015 and every five (5)
years thereafter, the amounts in subparagraphs (A), (B) and (D)
of paragraph (iii) of this subsection shall be adjusted to
reflect the percentage change for such five (5) year period in
the consumer price index for all urban consumers published by
the bureau of labor statistics of the United States department
of labor.