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§ 991.1615. Licensing of surplus lines licensee

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. InsuranceEffective: June 30, 2011

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 2. Insurance Companies (Refs & Annos)
Article XVI. Surplus Lines (Refs & Annos)
Effective: June 30, 2011
40 P.S. § 991.1615
§ 991.1615. Licensing of surplus lines licensee
Currentness
(a) For insureds whose home state is this Commonwealth, no insurance producer licensed by the department shall transact surplus lines insurance with any nonadmitted insurer unless the insurance producer possesses a valid surplus lines producer's license issued by the department.
(b) The department shall issue a surplus lines producer's license to any resident of this Commonwealth or to a nonresident who is a qualified holder of a current Pennsylvania property and casualty insurance producer's license, but only when the insurance producer has complied with the following:
(1) Remitted the surplus lines producer license fee to the department.
(2) Submitted a properly completed surplus lines producer license application on a form supplied by the department.
(3) Passed a qualifying examination approved by the department, except that all holders of a license prior to the effective date of this article shall be deemed to have passed such an examination.
(c) Business entities that are licensed as Pennsylvania insurance producers shall be eligible to be surplus lines licensees if the business entities do all of the following:
(1) Designate one or more officers or partners licensed under this article to be responsible for compliance with all reporting and recordkeeping required by this article.
(2) Provide to the department a list of all surplus lines licensees associated with and placing surplus lines business through the business entity. The business entity shall provide to the department an updated list of licensees within five (5) business days of a change in association of any licensee. The list shall be available at all times for inspection by the department.
(c.1) A nonresident person whose home state issues surplus lines licenses to residents of Pennsylvania on the same basis and who is licensed in Pennsylvania as a property and casualty producer may be licensed as a surplus lines producer if the person does all of the following:
(1) Is currently licensed as a surplus lines producer and is in good standing in its home state.
(2) Has submitted a complete application for a surplus lines license and has paid the required fees.
(3) Has submitted or transmitted to the department the application for a surplus lines license submitted in its home state or a completed uniform application that complies with section 610-A of the act of May 17, 1921 (P.L. 789, No. 285),1 known as “The Insurance Department Act of 1921.”
(4) Has complied with all of the provisions of Article VI-A of “The Insurance Department Act of 1921.”2
(c.2) The commissioner may participate with the National Association of Insurance Commissioners or its affiliates in a centralized insurance producer registry for the purpose of submitting or obtaining information on insurance producers, surplus lines producers and other licensees, including licensing history, lines of authority and regulatory actions.
(d) Each surplus lines license shall be:
(1) Issued as follows:
(i) Only in the name of the individual applicant or business entity. A licensee doing business under a fictitious name other than the name appearing on the license shall be required to notify the department in writing prior to use of the fictitious name for the department's consent to use of the name.
(ii) In paper or electronic form.
(iii) For a period not to exceed two (2) years. The following shall apply:
(A) The surplus lines license of a natural person shall expire on the last day of the birth month of the licensee. The initial license cycle may vary to coincide with the expiration cycle of the birth month.
(B) The surplus lines license of a business entity shall expire on the last day of the month in which the license was originally issued.
(2) Nontransferable.
(e) A nonrefundable two hundred dollar ($200) fee shall accompany an application or renewal for a surplus lines license, unless modified by the department by regulation.
(f) The following shall apply:
(1) A surplus lines licensee that allows the licensee's license to lapse by failing to timely renew the license or by failing to pay the fee required by this act may, within one year of the license renewal date, request the department to reinstate the license. Persons requesting reinstatement shall pay a fee of two times the fee required by this act and may be subject to other penalties as provided by law before the license will be renewed.
(2) Persons requesting reinstatement of a lapsed license shall submit a completed renewal form and the fee required by this act.
(3) The department shall reinstate a license under this subsection retroactively, with the reinstatement effective on the date the license lapsed, if the department receives a request for reinstatement together with a completed renewal application and payment of the lapsed license fee within sixty (60) days after the license lapsed.
(4) The department shall reinstate a license under this subsection prospectively, with reinstatement effective on the date that the license is reinstated, if the department receives a request for reinstatement of a lapsed license more than sixty (60) days after the license lapsed but within one year after the license lapsed.
(5) If a person applies for reinstatement more than one year after the lapse date, the person must reapply for the license under this act.
(g) As used in subsection (c.1), the term “home state” for an insurance producer or surplus lines producer shall be as defined as in section 601-A of the act of May 17, 1921 (P.L. 789, No. 285), known as “The Insurance Department Act of 1921.”

Credits

1921, May 17, P.L. 682, No. 284, art. XVI, § 1615, added 1992, Dec. 18, P.L. 1519, No. 178, § 19, effective in 120 days. Amended 2002, July 10, P.L. 749, No. 110, § 8, effective in 60 days; 2010, March 22, P.L. 147, No. 14, § 9, effective in 180 days [Sept. 20, 2010]; 2011, June 30, P.L. 194, No. 28, § 5, imd. effective.

Footnotes

1
40 P.S. § 310.10.
2
40 P.S. § 310.1 et seq.
40 P.S. § 991.1615, PA ST 40 P.S. § 991.1615
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document