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§ 3-319. Placement of surplus lines insurance with unauthorized insurer prohibited

West's Annotated Code of MarylandInsuranceEffective: July 1, 2015

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 3. Surplus Lines Insurance (Refs & Annos)
Effective: July 1, 2015
MD Code, Insurance, § 3-319
§ 3-319. Placement of surplus lines insurance with unauthorized insurer prohibited
Currentness
In general
(a) A surplus lines broker may not place surplus lines insurance with an unauthorized insurer that:
(1) has not been approved by the Commissioner as a surplus lines insurer in accordance with § 3-318 of this subtitle;
(2) for an insurer not domiciled in the State, has not qualified under § 3-303 of this subtitle;
(3) has been determined by the Commissioner to be insolvent or unsafe financially under subsection (b) of this section; or
(4) has been determined by the Commissioner to have refused to pay just claims.
Determination that surplus lines insurer is unsafe or insolvent
(b)(1) The Commissioner shall direct that surplus lines insurance may not be placed with a surplus lines insurer that has been approved by the Commissioner if the Commissioner determines that the surplus lines insurer:
(i) is not in a safe or solvent financial condition; or
(ii) has refused to pay just claims.
(2) After written notice of a determination made by the Commissioner under paragraph (1) of this subsection is mailed by the Commissioner to qualified surplus lines brokers, surplus lines insurance may not be placed with the surplus lines insurer.
Knowingly unsafe or insolvent insurers
(c) Notwithstanding any other provision of this subtitle, a surplus lines broker may not place surplus lines insurance with an insurer if the broker knows, or reasonably should know, that the insurer is in an unsafe or insolvent financial condition.
Commissioner as agent of unauthorized insurer
(d) A qualified surplus lines broker may not place a risk in an unauthorized insurer that has not previously appointed the Commissioner as agent for the acceptance of service of process.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2011, c. 520, § 1, eff. July 1, 2011; Acts 2011, c. 521, § 1, eff. July 1, 2011; Acts 2015, c. 204, § 1, eff. July 1, 2015.
Formerly Art. 48A, §§ 190, 197.
MD Code, Insurance, § 3-319, MD INSURANCE § 3-319
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document