MARVIN MANDEL, Governor                                    595

[ (a) Surplus line brokers shall not knowingly place
surplus line insurance with unauthorized insurers who are
insolvent or unsound financially.]

(A)    NO SURPLUS LINE BROKER SHALL PLACE SURPLUS
LINE INSURANCE WITH AN UNAUTHORIZED INSURER WHICH HAS NOT
BEEN APPROVED BY THE COMMISSIONER AS A SURPLUS LINE
INSURER, OR WHICH HAS BEEN DETERMINED TO BE UNSAFE
FINANCIALLY, OR INSOLVENT, BY THE COMMISSIONER PURSUANT
TO SUBSECTION (C) HEREOF.

(B)    NO INSURER SHALL BE APPROVED AS A SURPLUS LINE
INSURER UNTIL IT HAS FILED ANNUALLY WITH THE COMMISSIONER
THE FOLLOWING:

(1)    A WRITTEN REQUEST TO BE APPROVED AS A
SURPLUS LINE INSURER FOR THOSE SURPLUS LINES AUTHORIZED
BY THE COMMISSIONER;

(2)    A CERTIFIED COPY OF ITS ANNUAL STATEMENT
ON CONVENTION FORM, SHOWING THE AMOUNT BY LINE OF SURPLUS
LINE BUSINESS WRITTEN ON RISKS LOCATED IN THIS STATE
DURING THE PERIOD COVERED BY SAID STATEMENT;

(3)    A CERTIFICATE OF COMPLIANCE ISSUED BY
THE INSURANCE DEPARTMENT OF THE STATE OF DOMICILE;

(4)    A CERTIFICATE OF DEPOSIT ISSUED BY THE
OFFICIAL CUSTODIAN OF DEPOSITS OF THE STATE OF DOMICILE.

[(b)] (C) If at any time the Commissioner shall
determine, in his judgment, that an [unauthorized]
APPROVED SURPLUS LINE insurer is not in a safe or solvent
financial condition, or has refused to pay just claims,
he shall direct that no [such] insurance shall be placed
with such insurer; and upon his written notice to that
effect mailed to licensees under this subtitle,
thereafter no insurance shall be placed with such
insurer.

(D)    ANY OTHER PROVISION HEREOF NOTWITHSTANDING, NO
SURPLUS LINE BROKER SHALL PLACE SURPLUS LINE INSURANCE
WITH AN INSURER WHEN THAT BROKER KNOWS, OR REASONABLY
SHOULD HAVE KNOWN, THAT THE INSURER WAS IN AN UNSAFE OR
INSOLVENT FINANCIAL CONDITION.

(E)    NOTHING CONTAINED IN THIS SUBTITLE SHALL LIMIT
OR ABRIDGE THE RIGHT OF A SURPLUS LINE BROKER TO PLACE
SURPLUS LINE INSURANCE WITH ALIEN INSURERS THAT HAVE
QUALIFIED WITH THE NATIONAL ASSOCIATION OF INSURANCE
COMMISSIONERS NON-ADMITTED INSURER INFORMATION OFFICE.