Under existing law, a person may not act as an agent for an insurance company unless the agent is licensed. The law allows an exception for surplus line brokers who issue policies under certain conditions when policies may not be available for certain coverages. This bill would update the laws relating to surplus line brokers to adopt revisions to the Nonadmitted Insurance Model Act by the National Association of Insurance Commissioners (NAIC). This bill would also adopt the federal exemption requirement for diligent search efforts, allow surplus line brokers to file reports on placed coverage quarterly rather than on a 30 day rolling basis, ensure nonresident surplus line brokers comply with the same requirements as resident surplus line brokers, codify broker fees while requiring disclosure in the policy for consumer protection, eliminate zero premium reporting, adopt the federal definition of home state, and repeal the Surplus Lines Insurance Multi-State Compliance Compact Act in this state.

Statutes affected:
Introduced: 27-10-1, 27-10-2