Reference is to Printer's Date 3/20/13-S.
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1. Section 38-45-90 of the 1976 Code, as last amended by Act 283 of 2012, is further amended to read:
(A) At the request of a
licensed resident broker, the director or his designee may
approve certain nonadmitted insurers as eligible surplus lines
insurers to write business on risks located in this State that
one or more insurers licensed in this State to write that line
of business in this State have declined to write. The director
or his designee may require the broker to submit, on behalf of
the insurer, documents necessary to satisfy him that the insurer
is licensed in his
state, that it is solvent meets the minimum
capital and surplus requirements of this State, and that its
operation is not hazardous to the policyholders. The director
or his designee may require the broker or the insurer to file
additional documents at any time to maintain the insurer's
status as an eligible surplus lines insurer. For the
purposes of this section, 'domiciliary state' means the
state or jurisdiction in which an insurer is incorporated or
organized. The director or his designee may withdraw his
approval at any time the insurer fails to meet any of the
requirements. While the insurer maintains his status as an
eligible surplus lines insurer, a duly licensed broker, under
the terms of this chapter, may place business with the insurer.
An insurance broker shall exercise due care in the placing of
insurance, except as provided in subsection (B). Each
broker transacting business in the State during a calendar year
shall file annually with the department within thirty days after
December thirty-first a detailed report of this business. The
report must be in the form the director or his designee
prescribes. The broker's books, papers, and accounts must be
open at all times to the inspection of the director or his
(B) A surplus lines broker is not required to search with due diligence to determine whether the full amount or type of insurance can be obtained from an admitted insurer when the broker is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser provided the:
(1) broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market and that insurance obtained from the admitted market may provide greater protection with more regulatory oversight; and
(2) exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a nonadmitted insurer."
SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.