J. MILLARD TAWES, Governor                     1079

196.    Revocation or Suspension of Broker's License.

(a)   The Commissioner may revoke or suspend any surplus line
broker's license:

(1)   If the broker fails to file his semi-annual statement or to
remit the tax as required by law; or

(2)   If the broker fails to keep the records, or to allow the Com-
missioner to examine his records, as required by law; or

(3)   If the broker fails to file or falsifies the affidavit required by
section 185; or

(4)   For any of the causes for which an insurance agent or
broker's license may be revoked or suspended under this article.

(b)   No broker whose license has been so revoked or suspended
shall again be so licensed until all penalties and delinquent taxes
owing by him have been paid.

197.    Service of Process.

No person licensed to act as a surplus line broker in the State
shall place any risk in any unauthorized insurer unless such insurer
has previously, in writing, appointed the Commissioner agent for
the acceptance of service of process.

198.    Rules and Regulations.

The Commissioner shall make or may approve and adopt reason-
able rules and regulations, consistent with this surplus line in-
surance law, for any or all of the following purposes:

(1)   Effectuation of such law;

(2)   Establishment of procedures through which determination is
to be made as to the eligibility of particular proposed coverages for
placement with a surplus line insurer or insurers.

199.    Exemptions from Surplus Line Law.

The provisions of this Surplus Line Insurance Law controlling the
placing of insurance with unauthorized insurers shall not apply to
life and health insurance and annuities and reinsurance or to the fol-
lowing insurances:

(1)   Wet marine and transportation insurances;

(2)   Insurance on subjects located, resident, or to be performed
wholly outside of this State, or on vehicles or aircraft owned and
principally garaged outside this State;

(3)   Insurances on property or operation of railroads engaged in
interstate commerce;

(4)   Insurance of aircraft owned or operated by manufacturers
of aircraft or operated in scheduled interstate flight, or cargo of
such aircraft, or against liability, other than workmen's compensa-
tion and employer's liability, arising out of the ownership, mainte-
nance or use of such aircraft.