Section 384.043

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 384

Effective - 28 Aug 2001, 5 histories, see footnote   (history) 

  384.043.  Licensing requirements for surplus lines brokers, fee — bond — examination, exception — renewal, when, violation, effect. — 1. No agent or broker shall procure any contract of surplus lines insurance with any nonadmitted insurer, unless he possesses a current surplus lines insurance license issued by the director.

  2. The director shall issue a surplus lines license to any qualified holder of a current resident or nonresident property and casualty license but only when the licensee has:

  (1) Remitted the one hundred dollar initial fee to the director;

  (2) Submitted a completed license application on a form supplied by the director;

  (3) Passed a qualifying examination approved by the director, except that all holders of a license prior to July 1, 1987, shall be deemed to have passed such an examination; and

  (4) Filed with the director, and maintains during the term of the license, in force and unimpaired, a bond in favor of this state in the penal sum of one hundred thousand dollars or in a sum equal to the tax liability for the previous tax year, whichever is smaller, aggregate liability, with corporate sureties approved by the director. The bond shall be conditioned that the surplus lines licensee will conduct business in accordance with the provisions of sections 384.011 to 384.071 and will promptly remit the taxes as provided by law. No bond shall be terminated unless at least thirty days' prior written notice is given to the licensee and director.

  3. Each surplus lines license shall be renewed annually on the anniversary date of issuance and continue in effect until refused, revoked or suspended by the director in accordance with section 384.065; except that if the annual renewal fee for the license is not paid on or before the anniversary date, the license terminates. The annual renewal fee is fifty dollars.

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(L. 1987 H.B. 700 § 13, A.L. 1989 S.B. 250, A.L. 1990 H.B. 1739, A.L. 2001 S.B. 193 merged with S.B. 605)