Title 27 — Title 27

Enforcement of Contracts. (a) In this state, no person shall act as agent for, or otherwise represent, directly or indirectly, any insurer not authorized to transact insurance in this state in the solicitation, negotiation, or effectuation of insurance or annuity contracts, forwa…

Adjusters. (a) Any person who willfully represents or aids an unauthorized insurer in violation of Section 27-10-1, in addition to any other applicable penalty, shall be liable for the full amount of any loss sustained by the insured under any such contract and for any premium ta…

If certain insurance coverages cannot be procured on terms acceptable to the insureds from authorized insurers, the coverages, designated “surplus lines,” may be procured from unauthorized insurers subject to the terms and conditions of either subdivisions (1) or (2): (1)a. The i…

If surplus line insurance was transacted in the preceding calendar quarter, the surplus line broker shall file a quarterly report as prescribed by the commissioner setting forth facts from which it can be determined whether the coverage has been lawfully placed as a surplus line.…

Every insurance contract procured and delivered as a surplus line coverage pursuant to this article shall bear the name and license number of the surplus line broker who procured it and shall have stamped upon it the following: “This contract is registered and delivered as a surp…

Insurance contracts procured as surplus line coverages from unauthorized insurers in accordance with this article shall be valid and enforceable as to all parties and shall be recognized in all matters to the same effect and extent as like contracts issued by authorized insurers.…

(a) Any person licensed as a resident insurance producer in this state for the property and casualty lines of authority and deemed by the commissioner sufficiently experienced in the insurance business may be licensed as a surplus line broker for the same types of insurance that …

Brokers; Per Policy Fee. (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…

(a) A surplus line broker shall not knowingly place surplus line insurance with an insurer that is unsound financially or that is ineligible under this section. The broker shall ascertain the financial condition of the unauthorized insurer before placing insurance therewith. (b) …

Certificate and Failure to Notify Insured of Material Change. (a) Upon placing a surplus line coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance, consisting either of the policy as issued by the insurer or, if such policy is not then av…

(a) As to a surplus line risk which has been assumed by an unauthorized insurer pursuant to this surplus line insurance law and if the premium thereon has been received by the surplus line broker who placed such insurance, in all questions thereafter arising under the coverage as…

(a) Each surplus line broker shall keep in his office in this state a full and true record of each surplus line contract procured by him, including a copy of the policy, certificate, cover note or other confirmation of insurance and of the daily report, if any, and showing such o…

(a) No unauthorized insurer shall institute or file, or cause to be instituted or filed, any action or proceeding in this state to enforce any right, claim, or demand arising out of any insurance transaction in this state until such insurer has obtained a certificate of authority…

(a) Each surplus line broker, on or before the first day of March of each year, shall file with the commissioner a verified statement of all surplus line insurance transacted by him or her during the preceding calendar year. If no surplus line insurance was transacted in the prec…

(a) On or before the first day of March each year, the surplus line broker shall remit to the State Treasurer through the commissioner, as a tax imposed for the privilege of transacting business as a surplus line broker in this state, a tax of six percent on the direct premiums, …

(a) The commissioner may revoke or suspend any surplus line broker’s license for any one or more of the following: (1) If the broker fails to file an annual statement or to remit the tax as required by law. (2) If the broker fails to keep the records or to allow the commissioner …

(a) Any unauthorized insurer issuing a policy or assuming a direct insurance risk under this surplus line law shall be deemed thereby to have appointed the commissioner as its attorney upon whom may be served all lawful process in any action or proceeding against it in this state…

The provisions of this surplus line insurance law controlling the placing of insurance with unauthorized insurers shall not apply to reinsurance or to the following insurances when so placed by licensed agents or brokers of this state: (1) Wet marine and transportation insurance;…

Exceptions. (a) Anyone who may desire to place his insurance in a foreign insurer not authorized to do business in this state may place such insurance, and any insured who in this state procures, or causes to be procured, or continues or renews insurance in an unauthorized foreig…

Every person as to whom insurance is placed with an unauthorized insurer, upon the commissioner’s order, shall produce for his examination all policies and other documents evidencing the insurance and shall disclose to the commissioner the amount of gross premiums paid, or agreed…

(a) Any person who in this state represents or aids a nonadmitted insurer in willful violation of the provisions of this surplus lines insurance law shall, upon conviction thereof, be guilty of a misdemeanor and be subject to a fine not in excess of $1,000.00 or imprisonment for …

This article constitutes, and may be referred to as, “the surplus line insurance law.” History: (Acts 1971, No. 407, p. 707, §194.)

The purpose of this article is to subject certain insurers to the jurisdiction of courts of this state in actions by, or on behalf of, insureds or beneficiaries under insurance contracts. The Legislature declares that it is a subject of concern that many residents of this state h…

Process on Foreign or Alien Insurer. Any of the following acts in this state, effected by mail or otherwise, by an unauthorized foreign or alien insurer: (1) The issuance or delivery of contracts of insurance to residents of this state or to corporations authorized to do business…

(a) Service of process upon an insurer pursuant to Section 27-10-51 shall be made by delivering to, and leaving with, the commissioner, or some person in apparent charge of his office, two copies thereof and the payment to him of such fees as may be prescribed by law. The commiss…

(a) Before an unauthorized insurer shall file, or cause to be filed, any pleading in any action or proceeding instituted against it under Sections 27-10-51 and 27-10- 52, such insurer shall: (1) Procure a certificate of authority to transact insurance in this state; or (2) Deposi…

Nothing in the Unauthorized Insurers Process Act shall be construed to authorize or permit the transaction of any insurance business in this state by any unauthorized insurer nor relieve any such insurer from any penalty provided by law in the transaction of business in this stat…

This Unauthorized Insurers Process Act shall not apply as to surplus line insurance lawfully effectuated under this title nor to any action or proceeding against an unauthorized insurer arising out of: (1) Wet marine and transportation insurance; (2) Insurance on, or with respect…

(a) This article constitutes and may be cited as the Unauthorized Insurers Process Act. (b) This article shall be so interpreted as to effectuate its general purpose to make uniform the law of those states which enact it. History: (Acts 1951, No. 768, p. 1335, §7; Acts 1971, No. …