J. MILLARD TAWES, Governor                     1075

13. SURPLUS LINES

183.    Surplus Line Insurance Law; Title.

This subtitle constitutes and may be referred to as the "Surplus
Line Insurance Law".

184.    Surplus Lines Insurance Authorized.

If the full amount or policy of insurance required to protect the
interest of the insured cannot be obtained from insurers who are
authorized to do business in this State, such surplus amount or policy,
hereinafter designated as surplus line, may be procured from un-
authorized insurers subject to the following conditions:

(a)  The IF PROCURED THROUGH A BROKER, THE insur-
ance must be procured through a licensed surplus line broker RESI-
DENT OR LICENSED IN MARYLAND;

(b)   The insurance must be eligible as surplus line in accordance
with the provisions of this subsection.

(1)   A diligent search and effort must be made among the insurers
who are authorized to transact and are actually writing the par-
ticular kind and class of insurance in this State, and the amount of
insurance eligible for an unauthorized insurer is only the excess over
the amount procurable from authorized insurers.

(2)   The insurance must not be procured for the sole purpose of
securing advantages either as to:

(i) A lower premium rate than would be accepted by an author-
ized insurer; or

(ii) Terms of the insurance contract;

(iii) Provided nothing in this subtitle shall be construed to pro-
hibit a more favorable premium rate or more favorable terms of the
insurance contract in an unauthorized insurer, if the risk is eligible
as surplus line in accordance with the provisions of subsection (b)
(1) above.

(c)   There must be compliance with the other applicable provi-
sions of this subtitle.

185.    Surplus Lines Affidavit.

At the time of placing any such insurance an affidavit setting
forth the facts referred to in section 184, and such other facts
as the Commissioner may require, must be personally executed
by the surplus line broker or by the originating agent or broker.
Such affidavit shall be filed with the Commissioner within thirty
(30) days after the insurance is placed.

186.    Endorsement of Policy.

Every insurance contract or confirmation procured and delivered
as a surplus line coverage shall be endorsed or stamped conspicu-
ously and in bold face type on the first page of the contract or con-
firmation as follows: "This insurance is issued by a non-admitted
insurer not under the jurisdiction and control of the Maryland
Insurance Commissioner."