J. MILLARD TAWES, Governor                     1077

191.    Evidence of the Insurance; Changes; Penalty.

(a)   Upon placing a surplus line coverage, the broker shall
promptly deliver to the insured evidence of the insurance consist-
ing either of the policy as issued by the insurer or, if such policy is
not then available, a binder or cover note which shall show the
subject, coverage, conditions, term of the insurance, and the name
and address of the insurer. If the direct risk is assumed by more
than one insurer, the policy or policies, binder (s), or cover note(s)
shall state the names and addresses and proportion of the entire direct
risk assumed by each such insurer.

(b)   If after the issuance and delivery of any such binder (s) or
cover note(s) there is any change as to the identity of the insurers,
or the proportion of the direct risk assumed by any insurer as stated
in the original binder or cover note, or in any other material respect
as to the insurance coverage evidenced by the binder or cover note,
the broker shall promptly deliver to the insured an appropriate sub-
stitute for or endorsement of the original binder or cover note accu-
rately showing the current status of the coverage and the insurers
responsible thereunder.

(c)   The broker shall as soon as reasonably possible procure from
the insurer its policy evidencing such insurance and deliver such policy
to the insured in replacement of the binder or cover note theretofore
delivered.

(d)   Any surplus line broker who knowingly or negligently de-
livers a false binder or cover note, or fails promptly to notify the
insured of any material change with respect to such insurance by
delivery to the insured of a substitute binder or cover note as pro-
vided in subsection (b), shall be guilty of a violation of this article
and upon conviction shall be subject to the penalties provided by
section 12 of this article or to any greater applicable penalty other-
wise provided by law.

192.    Liability of Insurer as to Losses and Unearned Premiums.

(a)   As to a surplus line risk which has been assumed by an
unauthorized insurer pursuant to this surplus lines insurance law,
and if the premium thereon has been received by the surplus line
broker who placed such insurance, in all questions thereafter arising
under the coverage as between the insurer and the insured the
insurer shall be deemed to have received the premium due to it for
such coverage; and the insurer shall be liable to the insured as to
losses covered by such insurance, and for unearned premiums which
may become payable to the insured upon cancellation of such insur-
ance, whether or not in fact the broker is indebted to the insurer
with respect to such insurance or for any other cause. This provision
shall not affect rights as between the insurer and the surplus line
broker.

(b)   Each unauthorized insurer assuming a surplus lines direct
risk under this surplus line insurance law shall be deemed thereby
to have subjected itself to the terms of this section.

193.    Records and Statement.

(a) Each surplus line broker shall keep a separate record and
account of all business transacted under his license, including a copy