(a) A surplus lines regulatory support organization of surplus lines licensees shall be formed to:
(1) Facilitate and encourage compliance by resident and nonresident surplus lines licensees with the laws of this State and the rules and regulations of the Commissioner relative to surplus lines insurance;
(2) Communicate with organizations of admitted insurers with respect to the proper use of the surplus lines market;
(3) Receive and disseminate to surplus lines licensees information about surplus lines insurance, including, without limitation, new electronic filing procedures approved by the Commissioner, changes in the list of eligible surplus lines insurers, and modifications in coverages, procedures, and requirements as may be requested by the Commissioner; and
(4) Countersign nonresident produced surplus lines coverages and remit premium taxes for those coverages under G.S. 58-21-70 by means satisfactory to the Commissioner; and charge the nonresident surplus lines licensee a fee for the certification and countersignature as approved by the Commissioner.
(b) The regulatory support organization shall file with the Commissioner:
(1) A copy of its constitution, articles of agreement or association, or certificate of incorporation;
(2) A copy of its bylaws and rules governing its activities;
(3) An annually updated list of resident and nonresident licensees;
(4) The name and address of a resident of this State upon whom notices or orders of the Commissioner or processes issued at his direction may be served; and
(5) An agreement that the Commissioner may examine the regulatory support organization in accordance with subsection (c) of this section.
(c) The Commissioner may, at times deemed appropriate, make or cause to be made an examination of each regulatory support organization; in which case the provisions of G.S. 58-2-131, 58-2-132, 58-2-133, 58-2-134, 58-2-150, 58-2-155, 58-2-180, 58-2-185, 58-2-190, 58-2-195, and 58-2-200 shall apply. If the Commissioner finds the regulatory support organization or any surplus lines licensee, whether resident or nonresident, to be in violation of this Article, the Commissioner may issue an order requiring the discontinuance of the violation.
(d) Each resident surplus lines licensee shall maintain active membership in a regulatory support organization as a condition of continued licensure under this Article. (1985, c. 688, s. 1; 1987 (Reg. Sess., 1988), c. 975, s. 13; 1995, c. 193, s. 28; 1999-132, s. 11.3; 2001-203, s. 28; 2001-451, ss. 2.1, 2.2; 2001-487, s. 63.)
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Last modified: March 23, 2014