60A.198 TRANSACTION OF SURPLUS LINES INSURANCE.
Subdivision 1. License required.
A person, as defined in section
60A.02, subdivision 7
shall not act in any other manner as an agent or broker in the transaction of surplus lines insurance
unless licensed under sections
. A surplus lines license is not required for a
licensed resident agent who assists in the procurement of surplus lines insurance with a surplus
lines licensee pursuant to sections
Subd. 2. Compliance with statutory provisions.
A person shall not offer, solicit, make a
quotation on, sell, or issue a policy of insurance, binder, or any other evidence of insurance with an
eligible or ineligible surplus lines insurer, except in compliance with sections
Subd. 3. Procedure for obtaining license.
A person licensed as an agent in this state
pursuant to other law may obtain a surplus lines license by doing the following:
(a) filing an application in the form and with the information the commissioner may
reasonably require to determine the ability of the applicant to act in accordance with sections
(b) maintaining an agent's license in this state;
(c) agreeing to file with the commissioner of revenue all returns required by chapter 297I and
paying to the commissioner of revenue all amounts required under chapter 297I; and
(d) paying a fee as prescribed by section
Subd. 4. Licensee's powers.
A surplus lines licensee may do any or all of the following:
(a) place insurance on risks in this state with eligible surplus lines insurers;
(b) place insurance on risks in this state with ineligible surplus lines insurers in strict
compliance with section
. If the insurance is provided through the participation of several
surplus lines insurers and the licensee has reason to believe that a substantial portion of the
insurance would be assumed by eligible surplus lines insurers, then with respect to the ineligible
surplus lines insurers, the insured or the insured's representative shall be informed as provided in
60A.209, subdivision 1
, clause (a); or
(c) engage in any other acts expressly or implicitly authorized by sections
and the other insurance laws.
Subd. 5. Disclosures.
Before placement of insurance with an eligible surplus lines insurer,
a surplus lines licensee shall inform an insured or the insured's representative that coverage
may be placed in conformance with sections
with an insurer not licensed
in this state and that payment of loss is not guaranteed in the event of insolvency of the eligible
surplus lines insurer.
Subd. 6.[Repealed, 2000 c 394 art 2 s 28
History: 1981 c 221 s 4; 1983 c 328 s 7; 1984 c 592 s 40; 1986 c 444; 1987 c 337 s 12;
1989 c 260 s 6; 1990 c 480 art 6 s 2; 1993 c 375 art 10 s 4; 1994 c 632 art 4 s 25; 2000 c 394
art 2 s 6; 2001 c 12 s 1; 2001 c 117 art 2 s 6