Title 58, INSURANCE

An unauthorized insurer issuing such policy shall be deemed thereby to have authorized service of process against it in the manner and to the effect as provided in § 58-32-37 . Any such policy shall contain a provision stating the substance of §§ 58-32-36 to 58-32-38 , inclusive,…

Each broker shall keep in the broker's office a record of each surplus line coverage procured by the broker, including a copy of each daily report, if any; a copy of each certificate issued by the broker; and the following items as may be applicable: (1) Amount of the insurance; …

The provisions of this chapter do not apply to life and health insurance, annuities, or reinsurance. This section does not prohibit the procurement of coverage otherwise complying with the export requirements of this chapter for: (1) Disability insurance that has a benefit limit …

The record shall at all times within five years after issuance of the coverage to which it relates be open to examination by the director. A violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 11, § 16 (2); SL 1978, ch 359 , § 2; SL 2015, ch 260 , § 1…

Each broker shall before the first day of April of each year file with the director a verified statement of all surplus line insurance transacted by him during the preceding calendar year. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 11, § 17 (…

The statement shall be on forms furnished by the director and shall show: (1) Gross amount of each kind of insurance transacted; (2) Aggregate gross premiums charged; (3) Aggregate of returned premiums paid to insureds; (4) Aggregate of net premiums; and (5) Additional informatio…

The director may prescribe the use of a nationally recognized uniform report for the filing of information contained in affidavits, annual statements, and other reports for surplus lines brokers. If prescribed by the director, the uniform report shall be used in lieu of and satis…

Licensed insurance producers and brokers placing any insurance enumerated in subdivisions 58-32-5(1) to (4), inclusive, with an authorized insurer shall keep a record of each such coverage in detail as required of surplus line insurance under this chapter. The record shall be pre…

Before the first day of April of each year, each broker shall remit to the state treasurer, through the director of the Division of Insurance, a tax on the premiums, exclusive of sums collected to cover federal and state taxes and examination fees, on surplus line insurance trans…

For a surplus lines policy issued to an insured whose home state is this state and where only a portion of the risk is located in this state, the entire premium tax shall be paid to the director in accordance with § 58-32-44 . If the director finds it would increase the efficienc…

A broker is liable for a fine of twenty-five dollars for each day of delinquency commencing with the first day of April if any of the following apply: (1) The broker fails to remit the tax provided by § 58-32-44 prior to the first day of April; (2) The broker fails to file the an…

Every insured who in this state procures or causes to be procured or continues or renews insurance in an unauthorized foreign insurer, or any self - insurer who in this state so procures or continues excess loss, catastrophe or other insurance, upon a subject of insurance residen…

Any insurance in an unauthorized insurer procured through negotiations or an application in whole or in part occurring or made within or from within this state, or for which premiums in whole or in part are remitted directly or indirectly from within this state, shall be deemed t…

In order that the director may effectively administer the various provisions of this chapter, every person as to whom insurance has been placed with an unauthorized insurer shall, upon the director's order, produce for his examination all policies and other documents evidencing t…

The provisions of this chapter do not apply, except as to § 58-32-43 , to the following insurances if so placed by licensed insurance producers or surplus line brokers of this state: (1) Ocean marine and foreign trade insurances; (2) Insurance on subjects located, resident, or to…

For the general support of the government of this state there is levied upon the insured with respect to the obligation, chose in action, or rights represented by insurance described in § 58-32-47 , a tax at the rate of two and one - half percent of the gross amount of the premiu…

The tax imposed under § 58-32-50 , if delinquent, shall bear interest at the Category D rate of interest as established in § 54-3-16 , compounded annually. Source: SL 1966, ch 111 , ch 11, § 22 (4); SL 1983, ch 28 , § 67; SL 1984, ch 319 , § 33.

The tax imposed by § 58-32-50 shall be collectible from the insured by civil action brought by the director, or by distraint. Source: SL 1966, ch 111 , ch 11, § 22 (5).

The director shall promptly deposit all taxes and interest collected under §§ 58-32-50 to 58-32-52 , inclusive, with the state treasurer to the credit of the state's general fund. Source: SL 1966, ch 111 , ch 11, § 22 (6).

Sections 58-32-47 to 58-32-53 , inclusive, do not abrogate or modify any provision of this title covering unauthorized insurers or suits against unauthorized insurers. Source: SL 1966, ch 111 , ch 11, § 22 (7).

Sections 58-32-47 to 58-32-53 , inclusive, do not apply as to life or health insurances, or annuities. Source: SL 1966, ch 111 , ch 11, §§ 22 (8), 23 (2).

The director may adopt reasonable rules and regulations, consistent with this chapter, for any or all of the following purposes: (1) Effectuation of such chapter; (2) Establishment of procedures through which determination is to be made as to the eligibility of particular propose…

This chapter constitutes and may be cited as the Surplus Line Law. Source: SL 1966, ch 111 , ch 11, § 1 (1).

Unless performed by a licensed surplus line broker, the following acts are Class 2 misdemeanors if done in this state: (1) Acting as insurance producer for a nonadmitted insurer in the transaction of insurance business in this state; (2) In any manner advertising a nonadmitted in…

Any individual who is licensed in this state as an insurance producer and who is determined by the director to be competent and trustworthy with respect to the handling of surplus lines may be licensed as a surplus line broker. No individual is required to be licensed pursuant to…

Application for license as a surplus lines broker shall be made to the director on forms furnished by the director. The license fee shall be as specified in § 58-2-29 . Source: SL 1966, ch 111 , ch 11, § 12 (2), (3).

The surplus line broker license and licensee shall be subject to the applicable provisions of chapter 58-30 . Source: SL 1966, ch 111 , ch 11, § 12 (4).

The purpose of this chapter is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in the act of Congress of March 9, 1945, (Public Law 15, 79th Congress, ch. 20, 50 U.S. Stat. at Large 33), by defining, or providing for…

No person shall file with any supervisory or other public official, or make, publish, disseminate, circulate, or deliver to any person, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed…

Any notification made pursuant to § 58-33-98 is confidential and privileged from disclosure in response to a subpoena or otherwise, and is not subject to discovery or admissible in evidence in any private action. Nothing in §§ 58-33-93 to 58-33-116 , inclusive, limits the directo…

Nothing in §§ 58-33-93 to 58-33-116 , inclusive, prevents the director from disclosing the contents of a report or notification filed under this section to the insurance division of any other state or agency of the federal government at any time, or any other regulatory or law en…

An insurance producer, prior to engaging in or assisting any person to engage in offering a health benefit plan to an employer or person located in this state, shall carry out appropriate due diligence to establish that the health benefit plan is not unauthorized health insurance…

An insurance producer, prior to submitting an application for a stop loss policy to an insurer for a health benefit plan offered to employees, employee dependents, or a person located in this state, shall carry out appropriate due diligence to establish that the health benefit pl…

A third party administrator, prior to entering into any administrative contract for a health benefit plan, and prior to assisting any person with administration of a health benefit plan, covering employees of an employer or a person located in this state, shall carry out appropri…

An insurer, prior to issuing a stop loss policy for a health benefit plan covering employees, employee dependents, or individuals located in this state, shall carry out appropriate due diligence to establish that the health benefit plan is not unauthorized health insurance, inclu…

No insurer may engage in the transacting of insurance by issuing a stop loss policy unless the insurer is an admitted insurer in this state and the stop loss policy form has been filed and approved by the division, unless the form is exempt by law from filing. The transacting of …

No insurer may engage in the transacting of insurance in this state by issuing a stop loss policy unless, prior to issuing a contract for the stop loss policy, the insurer discloses clearly and conspicuously to the employer, in writing the following: (1) The employer is not cover…

A preferred provider organization, prior to entering into any contract with a person offering or providing a health benefit plan in this state, shall carry out appropriate due diligence to establish that the health benefit plan is not unauthorized health insurance, including thos…

A licensee or other person who acts according to the written advice of the MEWA contact has a defense to any violation of §§ 58-33-103 to 58-33-108 , inclusive, if the information provided by the licensee or other person to the MEWA contact, to the extent material to the MEWA con…

No person may issue or deliver or permit its insurance producers, officers, or employees to issue or deliver, agency company stock or other capital stock, or benefit certificates or shares in any common law corporation, or any advisory board contract or other similar contract of …

Any violation of §§ 58-33-102 to 58-33-108 , inclusive, is mitigated, and the division shall reduce or eliminate any sanction otherwise applicable, if a licensee or other person demonstrates all of the following: (1) The licensee or other person maintained supervisory procedures …

Nothing in § 58-33-109 or 58-33-110 requires a producer, third party administrator, insurer, or preferred provider organization to conduct due diligence with respect to a health benefit plan that it is not assisting and with respect to which it does not engage in the transacting …

An insurance producer, third party administrator, insurer, preferred provider organization, or an agent of the same shall establish and maintain documented supervision procedures and controls that are reasonably designed to achieve compliance with §§ 58-33-93 to 58-33-116 , inclu…

An insurer providing health insurance in this state shall require its listed producers to obtain not less than one hour of continuing education every four years covering: (1) Identification of unauthorized health insurance; and (2) The producer's responsibilities under §§ 58-33-9…

If a preferred provider organization violates a provision of §§ 58-33-93 to 58-33-116 , inclusive, the organization's registration may be suspended or revoked or other action may be taken by the director as is otherwise authorized by this title to ensure that compliance with §§ 5…

Nothing in §§ 58-33-93 to 58-33-116 , inclusive, applies to a joint powers agreement authorized pursuant to chapter 1-24 . Source: SL 2007, ch 292 , § 23.