Section 384.034

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 384

Effective - 01 Jul 1987, see footnote   

  384.034.  Advisory organization may be formed, purposes — information to be filed — examination when, costs — hearing on report, when — violations, penalty. — 1.  An advisory surplus lines organization of surplus lines licensees may be formed to:

  (1)  Facilitate and encourage compliance by its members with the laws of this state and the rules and regulations of the director relative to surplus lines insurance;

  (2)  Provide means for the examination, which shall remain confidential, of all surplus lines coverage written by its members to determine whether such coverages comply with such laws and regulations;

  (3)  Communicate with organizations of admitted insurers with respect to the proper use of the surplus lines market; and

  (4)  Receive and disseminate to its members information relative to surplus lines coverages.

  2.  Every such advisory organization shall file with the director:

  (1)  A copy of its constitution, its articles of agreement or association or its certificate of incorporation;

  (2)  A copy of its bylaws, rules and regulations governing its activities;

  (3)  A current list of its members;

  (4)  The name and address of a resident of this state upon whom notices or orders of the director or processes issued at his direction may be served; and

  (5)  An agreement that the director may examine such advisory organization in accordance with the provisions of this section.

  3.  The director shall, at least once in three years, make or cause to be made an examination of each such advisory organization.  The reasonable cost of any such examination shall be paid by the advisory organization upon presentation to it by the director of a detailed account of each cost.  The officers, managers, agents and employees of such advisory organization may be examined at any time, under oath, and shall exhibit all books, records, accounts, documents or agreements governing its method of operation.  The director shall furnish two copies of the examination report to the advisory organization examined and shall notify such organization that it may, within twenty days thereof, request a hearing on the report or on any facts or recommendations therein.  If the director finds such advisory organization or any member thereof to be in violation of any provision of sections 384.011 to 384.071, he may issue an order requiring the discontinuance of such violation.

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(L. 1987 H.B. 700 § 8)

Effective 7-01-87