(a) The Commissioner may not approve an insurer as a surplus lines insurer unless the insurer:
(1) is authorized in its domiciliary jurisdiction to write the type of insurance it seeks to write;
(2) has capital and surplus, or their equivalent under the laws of its domiciliary jurisdiction, equal to the greater of:
(i) the minimum capital and surplus required under the laws of its domiciliary jurisdiction; and
(ii) $15,000,000; and
(3) files with the Commissioner:
(i) a written request for approval as a surplus lines insurer to write the type of insurance the insurer seeks to write;
(ii) a certified copy of the insurer's annual statement, on convention form, that shows the amount by line of surplus lines business written on risks located in the State during the period covered by the annual statement; and
(iii) a certificate of compliance issued by the insurance department of the insurer's state of domicile.
Affirmative finding of acceptability by Commissioner
(b)(1) For a foreign insurer, the requirements of subsection (a)(2) of this section may be satisfied by the insurer's possessing less than the minimum capital and surplus if the Commissioner makes an affirmative finding of acceptability.
(2) The finding shall be based on the following or similar factors:
(i) quality of management;
(ii) capital and surplus of any parent company;
(iii) company underwriting profit and investment income trends;
(iv) market availability; and
(v) company record and reputation of the foreign insurer in the industry.
(3) The Commissioner may not make an affirmative finding of acceptability if the foreign insurer's capital and surplus is less than $4,500,000.
Approval expiration
(c) A surplus lines insurer's approval expires on June 30 each year unless the approval is renewed as provided in this section.
Renewal of approval
(d)(1) Before an approval expires, an insurer may renew the approval for a 1-year term if the insurer:
(i) files with the Commissioner, in accordance with the procedures established by the Commissioner, an application for renewal of approval as a surplus lines insurer;
(ii) pays to the Commissioner the applicable fee required by § 2-112 of this article; and
(iii) submits to the Commissioner any additional information or documentation that the Commissioner requires, including any information or documentation necessary to determine whether the insurer meets the requirements of subsections (a) and (b) of this section.
(2) The application for renewal of approval as a surplus lines insurer shall be signed by an officer of the insurer certifying that, to the best knowledge and belief of the officer, the insurer is in compliance with all statutes and regulations of the insurer's domiciliary jurisdiction.
Documents filed with Commissioner
(e) An unauthorized insurer shall appoint in writing 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 2017, c. 37, § 1, eff. Oct. 1, 2017.
MD Code, Insurance, § 3-318, MD INSURANCE § 3-318
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.
