California Insurance Code CHAPTER 6 - Surplus Line Brokers

• Section 1760.
  (a) A home state insured, as defined in subdivision (f) of Section 1760.1, may negotiate and effect insurance to protect himself, herself, or itself against loss,...
• Section 1760.1.
  For the purposes of this chapter, the following terms have the following definitions:(a) “Certified” means an originally signed or sealed statement, dated not more than 60...
• Section 1760.2.
  The surplus line broker shall be responsible for determining whether an applicant for nonadmitted insurance is a California home state insured. A surplus line broker...
• Section 1760.5.
  (a) The provisions of this chapter limiting the insurance that may be placed with nonadmitted insurers and requiring any report thereof shall not apply to:(1) Reinsurance of...
• Section 1760.6.
  For purposes of Section 1760.5, “spacecraft” means missiles, satellites, staffed and unstaffed space vehicles, any objects intended for launch, or objects launched or assembled in...
• Section 1760.7.
  In addition to the authority granted by Section 1760.5, the commissioner has the discretion to direct special lines’ surplus line brokers to not place further...
• Section 1761.
  (a) Except as provided in Sections 1760 and 1760.5, and paragraphs (1) and (2) of subdivision (b), a person within this state shall not transact any...
• Section 1762.
  For purposes of Sections 1764, 1764.1, and 1764.3, the term “certificate” means a surplus line broker certificate as defined in Section 48.(Added by Stats. 1999,...
• Section 1763.
  (a) A surplus line broker may solicit and place insurance for a home state insured, other than as excepted in Section 1761, with nonadmitted insurers only...
• Section 1763.1.
  (a) The commissioner may by order declare permissible for placement for a home state insured with a nonadmitted insurer and exempt from all requirements of Section...
• Section 1763.2.
  (a) A licensed surplus line broker may originate surplus lines business, or may accept that business from any other originating licensee duly licensed for the type...
• Section 1763.5.
  In addition to the requirements of Section 1763, no surplus line broker shall solicit from, or place with, any nonadmitted insurer, any insurance covering private...
• Section 1764.
  (a) A licensed surplus line broker may issue evidence of insurance for a home state insured, including binders, covernotes, and certificates evidencing the placement of insurance...
• Section 1764.1.
  (a) (1) Every nonadmitted insurer, in the case of insurance to be purchased by a home state insured pursuant to Section 1760, and surplus line broker, in...
• Section 1764.2.
  No surplus line broker shall issue any evidence of insurance or cause or purport to cause any risk to be insured by a nonadmitted insurer...
• Section 1764.3.
  If the surplus line broker acts in reliance on advice received in accordance with subdivision (b) of Section 1764.2, the broker shall deliver the policy...
• Section 1764.4.
  The prior written authority, policy of insurance or copy of evidence that insurance has been bound referred to in Section 1764.2, shall contain authentication by...
• Section 1764.5.
  If insurance results from a transaction in which any provision of Sections 1764.2 to 1764.4 is violated, such insurance is subject to cancellation by the...
• Section 1764.7.
  Any person who willfully violates Section 1760.5, 1761, 1763, 1764, 1764.1, 1764.2, 1764.3, 1764.4, 1765.1, 1765.2, 1767, or 1780 is guilty of a public offense...
• Section 1765.
  (a) A license under this chapter shall be applied for and renewed by the filing with the commissioner of a written application therefor, in accordance with...
• Section 1765.1.
  No surplus line broker shall place any coverage with a nonadmitted insurer for a home state insured unless the insurer is domiciled in the Republic...
• Section 1765.2.
  A surplus line broker may place any coverage with a California-approved nonadmitted insurer if the insurer is domiciled in the Republic of Mexico and the...
• Section 1765.3.
  (a) A license under this chapter may be issued to an individual or any legal business entity. If issued to a business entity or individual that...
• Section 1765.4.
  Any natural person applying for a license to act as a surplus line broker shall prove his or her competency by showing he or she...
• Section 1765.5.
  If an applicant for any license under this chapter, within one year from the date of the receipt by the commissioner of the application, whether...
• Section 1766.
  A payment of premium to a surplus line broker acting for a person other than himself or herself in negotiating, continuing, or renewing any policy...
• Section 1767.
  A resident surplus line broker at all times shall maintain in good faith an office in this state and if he or she maintains more...
• Section 1768.
  A resident surplus line broker shall keep in this state complete records of the business transacted by him or her for California home state insureds...
• Section 1769.
  Whenever required so to do by the commissioner, such surplus line broker shall furnish to the commissioner a list of the admitted insurers from which...
• Section 1770.
  The commissioner, whenever he deems necessary, may examine the books and accounts of any surplus line broker for the purpose of determining whether or not...
• Section 1771.
  The costs and expenses of all examinations by the commissioner shall be paid as prescribed in Section 736.(Amended by Stats. 1947, Ch. 1008.)
• Section 1772.
  (a) A surplus line insurer may be sued upon any cause of action arising in this state under any surplus line insurance contract made by it,...
• Section 1773.
  Surplus line brokers may advertise and solicit using print, electronic media, direct mail, and all other advertising or marketing media. These advertisements and solicitations may...
• Section 1774.
  (a) (1) On or before the first day of March of each year the surplus line broker, placing business for a home state insured, shall file with...
• Section 1775.
  All such reports and statements shall be made on blanks furnished to the surplus line broker by the commissioner on application therefor.(Enacted by Stats. 1935,...
• Section 1775.1.
  (a) Each calendar year, every surplus line broker whose annual tax for the preceding calendar year was twenty thousand dollars ($20,000) or more shall make monthly...
• Section 1775.2.
  On or before February 1 of each year, the commissioner shall post on the department’s Internet Web site the installment payment forms prescribed by the...
• Section 1775.3.
  Each surplus line broker required to make monthly installment payments shall remit them on or before the first day of the third calendar month following...
• Section 1775.4.
  (a) The amount of the payment shall be 3 percent of the gross premiums charged less return premiums upon business done by the surplus line broker...
• Section 1775.5.
  (a) Every surplus line broker shall annually, on or before the first day of March of each year, pay to the Insurance Commissioner for the use...
• Section 1775.6.
  All tax moneys received by the commissioner pursuant to this chapter shall be transmitted to the State Treasurer to be deposited in the State Treasury...
• Section 1775.7.
  The money in the Insurance Tax Fund received from the commissioner pursuant to Section 1775.6 is hereby appropriated as follows:(a) To pay the refunds authorized by...
• Section 1775.8.
  (a) On and after January 1, 1994, and before January 1, 1995, every surplus line broker whose annual taxes for business done in calendar year 1992...
• Section 1775.9.
  (a) If the commissioner determines that the amount of tax reported by the surplus line broker is less than the tax disclosed by the commissioner’s examination,...
• Section 1776.
  Any surplus line broker who willfully fails or refuses to report to the commissioner any insurance on subject matter located within this state placed under...
• Section 1778.
  When a surplus line broker’s license is revoked for any reason other than the insufficiency of his sureties, a new license shall not be issued...
• Section 1779.
  Every California home state insured for whom insurance has been effected with nonadmitted insurers shall, upon request in writing by the commissioner, produce for the...
• Section 1780.
  A licensee or applicant for a license under this chapter shall notify the commissioner, in writing, of any change in the address from which he...

Last modified: October 22, 2018