60A.208 LICENSEE ASSOCIATION.
Subdivision 1. Licensee's right to associate.
Surplus lines licensees may associate and the
commissioner may register the association for one or more of the following purposes:
(a) advising the commissioner as to the availability of surplus lines coverage and market
practices and standards for surplus lines insurers and licensees;
(b) collecting and furnishing records and statistics; or
(c) submitting recommendations regarding administration of sections
Subd. 2. Filing requirements.
(a) Each association shall file with the commissioner for
approval all of the following:
(1) a copy of the association's constitution and articles of agreement or association, or the
association's certificate of incorporation and bylaws and any rules governing the association's
(2) an agreement that, as a condition of continued registration under subdivision 1, the
commissioner may examine the association.
(b) Each association shall file with the commissioner and keep current all of the following:
(1) a list of members; and
(2) the name and address of a resident of this state upon whom notices or orders of the
commissioner or process issued by the commissioner may be served.
Subd. 3. Commissioner's powers; suspension of registration.
The commissioner may
refuse to register, or may suspend or revoke the registration of an association for any of the
(a) it reasonably appears that the association will not be able to carry out the purposes of
(b) the association fails to maintain and enforce rules which will assure that members of
the association and persons associated with those members comply with sections
, other applicable chapters of the insurance laws and rules promulgated under either;
(c) the rules of the association do not assure a fair representation of its members in the
selection of directors and in the administration of its affairs;
(d) the rules of the association do not provide for an equitable allocation of reasonable
dues, fees, and other charges among members;
(e) the rules of the association impose a burden on competition; or
(f) the association fails to meet other applicable requirements prescribed in sections
Subd. 4. Membership limited to licensees.
An association shall deny membership to any
person who is not a licensee.
Subd. 5. Association is voluntary.
No licensee may be compelled to join an association as a
condition of receiving a license or continuing to be licensed under sections
Subd. 6. Financial statement to be filed.
Each association shall annually file a certified
audited financial statement.
Subd. 7. Reports and recommendations by the association.
An association may submit
reports and make recommendations to the commissioner regarding the financial condition of
any eligible surplus lines insurer. These reports and recommendations shall not be considered
to be public information. There shall not be liability on the part of, or a cause of action of any
nature shall not arise against, eligible surplus lines insurers, the association or its agents or
employees, the directors, or the commissioner or authorized representatives of the commissioner,
for statements made by them in any reports or recommendations made under this subdivision.
Subd. 8. Operating assessment.
(a) Upon request from the association, the commissioner
may approve the levy of an assessment of not more than one-half of one percent of premiums
charged pursuant to sections
for operation of the association to the extent
that the operation relieves the commissioner of duties otherwise required of the commissioner
pursuant to sections
. Any assessment so approved may be subtracted from
the premium tax owed by the licensee under chapter 297I.
(b) The association may revoke the membership and the commissioner may revoke the
license in this state, of any licensee who fails to pay an assessment when due, if the assessment
has been approved by the commissioner.
History: 1981 c 221 s 13; 2000 c 394 art 2 s 7