Sec. 21.34.020. Placement of surplus lines insurance.

297 words·~1 min read·/ak/title-21/chapter-34/21-34-020

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Insurance other than reinsurance, wet marine and transportation insurance, insurance independently procured, life insurance, health insurance except as provided in AS 21.34.035 , and annuity contracts may be procured through a surplus lines broker licensed under AS 21.27 from nonadmitted insurers if

(1)the insurer is an eligible surplus lines insurer;

(2)the full amount, kind, or class of insurance cannot be obtained from insurers who are admitted to do business in this state;

(3)the producing broker has conducted and documented a diligent search among insurers who are admitted to transact business in this state and are actually writing the particular kind or class of insurance required by the client in this state;

(4)the director authorizes an exception to

(2)of this section by regulation or by written authorization for an individual placement upon written request by the broker; and

(5)all other requirements of this chapter are met.

(b)If a policyholder meets the standards of an exempt commercial purchaser under this title and regulations adopted by the director, insurance may be procured from a surplus lines broker without complying with (a)(2), (3), and

(4)of this section if

(1)the broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and

(2)the exempt commercial purchaser has subsequently requested in writing that the broker procure or place the insurance from a nonadmitted insurer.

(c)In this section,

(1)“amount” means limit, sublimit, retention, and broadening or restrictive endorsement;

(2)“class” means rating class;

(3)“kind” means one or more kinds of insurance as defined in AS 21.12 .