Missouri Revised Statutes

Chapter 384
Surplus Lines Insurance

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Title of law.

384.011. Sections 384.011 to 384.071 shall be known and may be cited as "The Missouri Surplus Lines Law".

(L. 1987 H.B. 700 § 1 subsec. 1)

Effective 7-1-87

Definitions.

384.015. As used in this chapter, the following terms shall mean:

(1) "Admitted insurer", an insurer licensed to do an insurance business in this state;

(2) "Capital", funds paid in for stock or other evidence of ownership;

(3) "Director", the director of the department of insurance, financial institutions and professional registration;

(4) "Domestic surplus lines insurer", a nonadmitted insurer that is domiciled in this state with which a surplus lines licensee may place only surplus lines insurance;

(5) "Eligible surplus lines insurer", a nonadmitted insurer with which a surplus lines licensee may place surplus lines insurance;

(6) "Exempt commercial purchaser", any person purchasing commercial insurance that, at the time of placement, meets the following requirements:

(a) The person employs or retains a qualified risk manager to negotiate insurance coverage;

(b) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars in the immediately preceding twelve months; and

(c) a. The person meets at least one of the following criteria:

(i) The person possesses a net worth in excess of twenty million dollars, as such amount is adjusted under subparagraph b. of this paragraph;

(ii) The person generates annual revenues in excess of fifty million dollars, as such amount is adjusted under subparagraph b. of this paragraph;

(iii) The person employs more than five hundred full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand employees in the aggregate;

(iv) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars, as such amount is adjusted under subparagraph b. of this paragraph; or

(v) The person is a municipality with a population in excess of fifty thousand persons.

b. Effective on the fifth January first occurring after the date of the enactment of United States Public Law 111-203 and each fifth January first occurring thereafter, the amounts in items (i), (ii), and (iv) of subparagraph a. of this paragraph shall be adjusted to reflect the percentage change for such five-year period in the Consumer Price Index for All Urban Consumers published by the United States Bureau of Labor Statistic of the Department of Labor;

(7) "Export", to place surplus lines insurance with a nonadmitted insurer;

(8) "Home state":

(a) Except as provided in paragraph (b) of this subdivision, the term "home state" means, with respect to an insured:

a. The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or

b. If one hundred percent of the insured risk is located out of the state referred to in subparagraph a. of this paragraph, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated;

(b) If more insureds than one from an affiliated group are named insureds on a single nonadmitted insurance contract, the term "home state" means the home state, as determined under paragraph (a) of this subdivision, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract;

(c) The principal place of business is the state where the insured maintains its headquarters and where the insured's high-level officers direct, control and coordinate the business activities of the insured;

(9) "Kind of insurance", one of the types of insurance required to be reported in the annual statement which must be filed with the director by admitted insurers;

(10) "Nonadmitted insurance", any property and casualty insurance permitted to be placed directly or through a surplus lines licensee with a nonadmitted insurer eligible to accept such insurance;

(11) "Nonadmitted insurer", an insurer not licensed to do an insurance business in this state, including insurance exchanges authorized under the laws of other states, but does not include a risk retention group, as that term is defined in the Liability Risk Retention Act of 1986 (15 U.S.C. Section 3901(a)(4));

(12) "Producing broker", the individual broker or agent dealing directly with the party seeking insurance;

(13) "Qualified risk manager", shall have the same meaning prescribed in the Nonadmitted and Reinsurance Reform Act of 2010 (15 U.S.C. Section 8206);

(14) "Surplus", funds over and above liabilities and capital of the company for the protection of policyholders;

(15) "Surplus lines insurance", any insurance of risks resident, located or to be performed in this state, permitted to be placed through a surplus lines licensee with a nonadmitted insurer eligible to accept such insurance, other than reinsurance, and life and health insurance and annuities;

(16) "Surplus lines licensee", a person licensed to place insurance on risks resident, located or to be performed in this state with nonadmitted insurers eligible to accept such insurance;

(17) "Wet marine and transportation insurance":

(a) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto;

(b) Insurance of marine builder's risks, marine war risks and contracts of marine protection and indemnity insurance;

(c) Insurance of freights and disbursements pertaining to a subject of insurance coming within this section; and

(d) Insurance of personal property and interests therein, in the course of exportation from or importation into any country, or in the course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in connection with any and all risks or periods of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during any delays, transshipment, or reshipment incident thereto.

(L. 1987 H.B. 700 § 1 subsec. 2, A.L. 1989 S.B. 250, A.L. 2011 S.B. 132, A.L. 2014 H.B. 1361)

Nonadmitted insurers, purchases from allowed, when.

384.017. Surplus lines insurance may be placed by a surplus lines licensee if:

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

(2) The full amount or kind of insurance is not obtainable from admitted insurers who are actually transacting in this state the class of insurance required by the insured. Insurance shall be deemed obtainable within the meaning of this section if there is available a market with admitted insurers that can supply the insured's requirements both as to type of coverage and as to quality of service. "Type of coverage", as used in this section, refers to hazards covered and limits of coverage. "Quality of security and service", as used in this section, refers to the rating by a recognized financial service; and

(3) All other requirements of sections 384.011 to 384.071 are met.

(L. 1987 H.B. 700 § 2, A.L. 1989 S.B. 250, A.L. 2011 S.B. 132, A.L. 2014 H.B. 1361)

Nonadmitted insurer deemed domestic surplus lines insurer,when--domestic insurer deemed eligible surplus lines insurer,when--policies subject to taxation, when--exemption from certainstatutory requirements, when--rulemaking authority.

384.018. 1. A nonadmitted insurer that is domiciled in this state will be deemed a domestic surplus lines insurer if all of the following are satisfied:

(1) The insurer possesses policyholder surplus of at least twenty million dollars;

(2) The insurer is an approved or eligible surplus lines insurer in at least one jurisdiction other than this state;

(3) The board of directors of the insurer has passed a resolution seeking to be a domestic surplus lines insurer in this state; and

(4) The director has given written approval for the insurer to be a domestic surplus lines insurer.

2. For the purposes of the federal Nonadmitted and Reinsurance Act of 2010 (15 U.S.C. Section 8201), a domestic surplus lines insurer shall be considered a nonadmitted insurer as the term is defined in the Act with respect to risks insured in this state.

3. A domestic surplus lines insurer is deemed an eligible surplus lines insurer authorized to write any kind of insurance that a nonadmitted insurer not domiciled in this state is eligible to write.

4. Notwithstanding any other statute, the policies issued in this state by a domestic surplus lines insurer shall be subject to taxes assessed upon surplus lines policies issued by nonadmitted insurers, including the surplus lines premium tax under section 384.059, but will not be subject to other taxes levied upon admitted insurers whether domestic or foreign, including, but not limited to, taxes imposed by section 148.320.

5. Policies issued by a domestic surplus lines insurer are not subject to protections of or other provisions of the Missouri property and casualty insurance guarantee association act, or the Missouri life and health insurance guaranty association act.

6. All financial and solvency requirements imposed by chapters 374, 375, 379, and 382 upon domestic admitted insurers shall apply to domestic surplus lines insurers unless domestic surplus lines insurers are otherwise specifically exempted.

7. A domestic surplus lines insurer shall not be subject to and shall be exempt from all statutory requirements relating to insurance rating plans, policy forms, policy cancellation and nonrenewal, and premium charged to the insured in the same manner and to the same extent as a nonadmitted insurer domiciled in another state.

8. The director may promulgate rules under section 374.045 and amend such rules relating to domestic surplus lines insurers as are necessary to enable the director to carry out the provisions of this chapter.

(L. 2014 H.B. 1361)

Nonadmitted insurers, limitation on furnishing coverage--exemptcommercial purchaser, licensee exemptions.

384.021. 1. A surplus lines licensee shall not place coverage with a nonadmitted insurer, unless, at the time of placement, the surplus lines licensee has determined that the nonadmitted insurer is authorized to write the kind of insurance in its domiciliary jurisdiction and meets one of these criteria:

(1) Has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction, which equals the greater of the minimum capital and surplus requirements under the laws of this state or fifteen million dollars, except that the requirements of this subdivision may be satisfied by an insurer's possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the director provided that the finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry, and in no event shall the director make an affirmative finding of acceptability when the nonadmitted insurer's capital and surplus is less than four million five hundred thousand dollars; or

(2) Appears on the most recent list of eligible surplus lines insurers published by the director from time to time but at least semiannually or on the most recent quarterly listing of alien insurers maintained by the international insurers department of the National Association of Insurance Commissioners.

2. Notwithstanding any other provision of this chapter or rules adopted to implement the provisions of this chapter, a surplus lines licensee seeking to procure or place nonadmitted insurance in Missouri for an exempt commercial purchaser shall not be required to satisfy any requirement to make a due diligence search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from nonadmitted insurers if:

(1) The surplus lines licensee procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such 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 the surplus lines licensee to procure or place such insurance from a nonadmitted insurer.

(L. 1987 H.B. 700 § 3, A.L. 1989 S.B. 250, A.L. 1994 H.B. 1449 merged with S.B. 687, A.L. 2011 S.B. 132, A.L. 2014 H.B. 1361)

Unlisted nonadmitted insurers may be used for coverage,when--requirements.

384.023. Risk eligible for export may be placed with any other nonadmitted insurer which does not appear on the list of eligible surplus lines insurers published by the director pursuant to subdivision (2) of subsection 1 of section 384.021 but nonetheless meets the requirements set forth in subdivision (1) of subsection 1 of section 384.021 and related complying regulations of the director. The surplus lines licensee seeking to provide coverage through an unlisted nonadmitted insurer shall make a filing specifying the amount and percentage of each risk to be placed, and naming the nonadmitted insurer with which placement is intended and shall pay the tax due pursuant to section 384.059. Within twenty days after placing the coverage, the surplus lines licensee shall also send written notice to the insured or the producing broker that the insurance, or a portion thereof, has been placed with such nonadmitted insurer.

(L. 1987 H.B. 700 § 4, A.L. 2014 H.B. 1361)

Ineligibility of nonadmitted insurer, grounds, when--notice tolicensees.

384.025. 1. If at any time the director has reason to believe that an eligible surplus lines insurer:

(1) Is in unsound financial condition;

(2) Is no longer eligible under section 384.021;

(3) Has willfully violated the laws of this state; or

(4) Does not make reasonably prompt payment of just losses and claims in this state or elsewhere; the director may declare it ineligible.

2. The director shall promptly publish notice of all such declarations in any public electronic format.

(L. 1987 H.B. 700 § 5, A.L. 2009 H.B. 577)

Advisory organization may be formed, purposes--information to befiled--examination when, costs--hearing on report,when--violations, penalty.

384.034. 1. An advisory surplus lines organization of surplus lines licensees may be formed to:

(1) Facilitate and encourage compliance by its members with the laws of this state and the rules and regulations of the director relative to surplus lines insurance;

(2) Provide means for the examination, which shall remain confidential, of all surplus lines coverage written by its members to determine whether such coverages comply with such laws and regulations;

(3) Communicate with organizations of admitted insurers with respect to the proper use of the surplus lines market; and

(4) Receive and disseminate to its members information relative to surplus lines coverages.

2. Every such advisory organization shall file with the director:

(1) A copy of its constitution, its articles of agreement or association or its certificate of incorporation;

(2) A copy of its bylaws, rules and regulations governing its activities;

(3) A current list of its members;

(4) The name and address of a resident of this state upon whom notices or orders of the director or processes issued at his direction may be served; and

(5) An agreement that the director may examine such advisory organization in accordance with the provisions of this section.

3. The director shall, at least once in three years, make or cause to be made an examination of each such advisory organization. The reasonable cost of any such examination shall be paid by the advisory organization upon presentation to it by the director of a detailed account of each cost. The officers, managers, agents and employees of such advisory organization may be examined at any time, under oath, and shall exhibit all books, records, accounts, documents or agreements governing its method of operation. The director shall furnish two copies of the examination report to the advisory organization examined and shall notify such organization that it may, within twenty days thereof, request a hearing on the report or on any facts or recommendations therein. If the director finds such advisory organization or any member thereof to be in violation of any provision of sections 384.011 to 384.071, he may issue an order requiring the discontinuance of such violation.

(L. 1987 H.B. 700 § 8)

Effective 7-1-87

Policy or certificate to be delivered to insured or broker--policiesto indicate current status and any changes--violation, penalties.

384.036. 1. Upon placing surplus lines insurance, the surplus lines licensee shall promptly deliver to the insured or the producing broker the policy, or if such policy is not then available, a certificate as described in subsection 4 of this section, cover note, binder or other evidence of insurance. The certificate, as described in subsection 4 of this section, cover note, binder or other evidence of insurance shall be executed by the surplus lines licensee and shall show the description and location of the subject of the insurance, coverages including any material limitations other than those in standard forms, a general description of the coverages of the insurance, the premium and rate charged and taxes to be collected from the insured, and the name and address of the insured and surplus lines insurer or insurers and proportion of the entire risk assumed by each, and the name of the surplus lines licensee and the licensee's license number.

2. No surplus lines licensee shall issue or deliver any evidence of insurance or purport to insure or represent that insurance will be or has been written by any eligible surplus lines insurer, or a nonadmitted insurer pursuant to section 384.023, unless he has authority from the insurer to cause the risk to be insured, or has received information from the insurer in the regular course of business that such insurance has been granted.

3. If, after delivery of any such evidence of insurance, there is any change in the identity of the insurers, or the proportion of the risk assumed by any insurer, or any other material change in coverage as stated in the surplus lines licensee's original evidence of insurance, or in any other material as to the insurance coverage so evidenced, the surplus lines licensee shall promptly issue and deliver to the insured or the original producing broker an appropriate substitute for, or endorsement of the original document, accurately showing the current status of the coverage and the insurers responsible thereunder.

4. As soon as reasonably possible after the placement of any such insurance, the surplus lines licensee shall deliver a copy of the policy or, if not available, a certificate of insurance to the insured or producing broker to replace any evidence of insurance theretofore issued. Each certificate or policy of insurance shall contain or have attached thereto a complete record of all policy insuring agreements, conditions, exclusions, clauses, endorsements or any other material facts that would regularly be included in the policy.

5. Any surplus lines licensee who fails to comply with the requirements of this section shall be subject to the penalties hereinafter provided.

6. Every evidence of insurance negotiated, placed or procured under the provisions of sections 384.011 to 384.071 issued by the surplus lines licensee shall, on the face of the policy or declaration page of the policy, bear the name of the licensee and the following legend in 10-point type: "This is evidence of insurance procured and developed under the Missouri Surplus Lines Laws. It is NOT covered by the Missouri Insurance Guaranty Association. This insurer is not licensed by the state of Missouri and is not subject to its supervision."

(L. 1987 H.B. 700 § 9, A.L. 1989 S.B. 250)

Enforceability of contract.

384.038. Insurance contracts procured under sections 384.011 to 384.071 shall be valid and enforceable as to all parties.

(L. 1987 H.B. 700 §§ 10, 11, A.L. 1989 S.B. 250)

Premium payment to licensee deemed payment to insurer.

384.041. A payment of premium to a surplus lines licensee acting for a person other than himself in negotiating, continuing, or reviewing any policy of insurance under the provisions of sections 384.011 to 384.071 shall be deemed to be payment to the insurer, whatever conditions or stipulations may be inserted in the policy or contract notwithstanding.

(L. 1987 H.B. 700 § 12)

Effective 7-1-87

Licensing requirements for insurance producers, fee--examination,exception--renewal, when, violation, effect--national database,participation in.

384.043. 1. No insurance producer shall procure any contract of surplus lines insurance with any nonadmitted insurer, unless he possesses a current surplus lines insurance license issued by the director.

2. The director shall issue a surplus lines license to any qualified holder of a current resident or nonresident property and casualty insurance producer license but only when the licensee has:

(1) Remitted the one hundred dollar initial fee to the director;

(2) Submitted a completed license application on a form supplied by the director; and

(3) Passed a qualifying examination approved by the director, except that all holders of a license prior to July 1, 1987, shall be deemed to have passed such an examination.

3. Each surplus lines license shall be renewed for a term of two years on the biennial anniversary date of issuance and continue in effect until refused, revoked or suspended by the director in accordance with section 384.065; except that if the biennial renewal fee for the license is not paid on or before the anniversary date, the license terminates. The biennial renewal fee is one hundred dollars.

4. Beginning on or before July 1, 2012, the director shall participate in the national insurance producer database of the National Association of Insurance Commissioners, or any other equivalent uniform national database, for the licensure of surplus lines licensees and the renewal of such licenses.

5. Notwithstanding any other provision of this chapter, a person selling, soliciting, or negotiating nonadmitted insurance with respect to an insured shall be required to obtain or possess a current surplus lines insurance license issued by the director only if this state is such insured's home state.

(L. 1987 H.B. 700 § 13, A.L. 1989 S.B. 250, A.L. 1990 H.B. 1739, A.L. 2001 S.B. 193 merged with S.B. 605, A.L. 2004 S.B. 1299, A.L. 2009 H.B. 577, A.L. 2011 S.B. 132)

Effective 7-07-11

Licensees may originate or accept insurance from other licensees orbrokers, compensation.

384.045. A surplus lines licensee may originate surplus lines insurance or accept such insurance from any other agent or broker duly licensed as to the kinds of insurance involved, and the surplus lines licensee may compensate such agent or broker therefor.

(L. 1987 H.B. 700 § 14)

Effective 7-1-87

Records required to be kept by licensees--to be open todirector--retention period.

384.048. Each surplus lines licensee shall keep in his office in this state a full and true record of each surplus lines insurance contract placed by or through him, including a copy of the policy, certificate, cover note, or other evidence of insurance showing such of the following items as may be applicable:

(1) Amount of the insurance and perils insured;

(2) Brief description of the property insured and its location;

(3) Gross premium charged;

(4) Any return premium paid;

(5) Rate of premium charged upon the several items of property;

(6) Effective date of the contract, and the terms thereof;

(7) Name and address of the insured;

(8) Name and address of the insurer;

(9) Amount of tax and other sums to be collected from the insured; and

(10) Identity of the producing broker, any confirming correspondence from the insurer or its representative and the application.

The record of each contract shall be kept open at all reasonable times to examination by the director without notice for a period not less than three years following termination of the contract. In lieu of maintaining offices in this state, each nonresident surplus lines licensee shall make available to the director any and all records that he deems necessary for examination. Examination costs incurred by the director in examining a nonresident surplus lines licensee shall be paid by the nonresident surplus lines licensee.

(L. 1987 H.B. 700 § 15, A.L. 1989 S.B. 250)

Insured to file report on surplus lines insurance not obtained througha broker--contents, when due--tax imposed, procedure to collecttax.

384.051. 1. Every insured whose home state is this state who procures or causes to be procured or continues or renews insurance in any surplus lines insurer, or any self-insurer whose home state is this state who so procures or continues with, any surplus lines insurer, excess of loss, catastrophe or other insurance, other than insurance procured through a surplus lines broker pursuant to sections 384.011 to 384.071, shall before March second of the year next succeeding the year in which the insurance was so procured, continued or renewed, file a written report of the same with the director on forms prescribed by the director and furnished to such an insured upon request. The report shall show:

(1) The name and address of the insured or insureds;

(2) The name and address of the insurer or insurers;

(3) The subject of the insurance;

(4) A general description of the coverage;

(5) The amount of premium currently charged therefor;

(6) Such additional pertinent information as may be reasonably requested by the director.

2. For the general support of the government of this state there is levied upon the insured or self-insurer who procures insurance pursuant to subsection 1 of this section a tax at the rate of five percent of the gross amount of the premium. Before April sixteenth of the year next succeeding the year in which the insurance was so procured, continued or renewed, the insured shall remit to the department of revenue the amount of the tax. The department of revenue shall notify the director of the sums collected from each insured or self-insurer.

(L. 1987 H.B. 700 § 16 subsecs. 1 to 5, A.L. 1989 S.B. 250, A.L. 2009 H.B. 577, A.L. 2011 S.B. 132)

Effective 7-07-11

Delinquent tax, penalty, interest.

384.054. Any tax imposed by sections 384.011 to 384.071 which is delinquent in payment shall be subject to a penalty of one percent of the tax per diem up to ten percent of the tax. Any delinquent tax shall bear interest at the rate determined under section 32.065 from the time such tax is due.

(L. 1987 H.B. 700 § 16 subsec. 6, A.L. 1989 S.B. 250, A.L. 2007 S.B. 66)

Licensee to file annual statement, contents--report to director,contents.

384.057. 1. Before March second of each year, each surplus lines broker shall report under oath to the director on forms prescribed by him or her a statement showing, with respect to the year ending the immediately preceding December thirty-first for nonadmitted insurance where the home state of the insured is this state:

(1) The gross amounts charged for surplus lines insurance, exclusive of sums collected for the payment of federal, state or local taxes;

(2) The amount of net premiums with respect to the insurance. For the purpose of this section, "net premiums" means the gross amount of charges for surplus lines insurance, exclusive of sums collected for the payment of federal, state and local taxes, less returned premiums.

2. No later than within forty-five days after the end of each calendar quarter ending March thirty-first, June thirtieth, September thirtieth, and December thirty-first each surplus lines broker shall report under oath to the director on forms prescribed by him or her a statement showing, with respect to each respective calendar quarter for nonadmitted insurance where the home state of the insured is this state:

(1) The gross amounts charged for surplus lines insurance, exclusive of sums collected for the payment of federal, state, or local taxes;

(2) The amount of net premiums with respect to the insurance. For the purpose of this section, "net premiums" means the gross amount of charges for surplus lines insurance, exclusive of sums collected for the payment of federal, state, and local taxes, less returned premiums.

(L. 1987 H.B. 700 § 16 subsec. 7, A.L. 1989 S.B. 250, A.L. 2009 H.B. 577, A.L. 2011 S.B. 132)

Effective 7-07-11

Premium tax applicable to surplus lines, rate, payment--broker maycharge tax to insured.

384.059. 1. There is hereby imposed on surplus brokers for the privilege of doing the business of a surplus lines broker in this state a tax of five percent of the net premium received with respect to surplus lines insurance on risks located in this state and subject to sections 375.136, 375.301, 375.786 and sections 384.011 to 384.071 as shown on the annual report filed with the department pursuant to section 384.057. For the purpose of this section, "net premiums" means the gross amount of charges for surplus lines insurance exclusive of sums collected for the payment of federal, state and local taxes, less returned premiums. The tax shall be paid before April sixteenth of each year. Nothing in sections 375.136, 375.301, 375.786 and sections 384.011 to 384.071 shall exempt from the tax levied by this section any surplus lines insurance covering risks in this state procured by a surplus lines broker or other broker for or on behalf of an airline, railroad, or motor carrier. The portion of the risk in this state shall be in the proportion that the carrier's revenue miles in this state bears to its total revenue miles.

2. The surplus lines broker may collect from the insured an amount equal to the tax provided for in this section.

(L. 1987 H.B. 700 § 17, A.L. 1989 S.B. 250)

Premium tax to be levied only on entire gross premium for nonadmittedor surplus lines insurance policies.

384.061. 1. Notwithstanding any other provision of this chapter or regulation implementing a provision of this chapter, the five percent tax on net premiums imposed by sections 384.051 and 384.059 shall be levied upon and only upon the entire gross premium for nonadmitted or surplus lines insurance policies for which the home state of the insured is Missouri.

2. Notwithstanding any other provision of this chapter or regulation implementing a provision of this chapter:

(1) The placement of nonadmitted insurance shall be subject to the statutory and regulatory requirements of this chapter only if this state is the insured's home state; and

(2) A surplus lines broker is required to be licensed as a surplus lines licensee under the provisions of this chapter only if this state is the insured's home state.

(L. 1989 S.B. 250, A.L. 2011 S.B. 132)

Effective 7-07-11

Premium taxes collected by licensee but unpaid to department, actionsauthorized--taxes payable to department.

384.062. 1. If any tax, penalty, or interest payable by a surplus lines licensee under the provisions of sections 384.011 to 384.071 is not paid within the time prescribed, the same shall be recoverable in a suit brought by the director against the surplus lines licensee.

2. All taxes, penalties, and interest or delinquent taxes levied pursuant to this chapter shall be paid to the department of revenue, who shall notify the director of the sums collected from each surplus lines licensee. All checks and drafts remitted for the payment of such taxes, penalties and interest shall be made payable to the director of revenue.

3. Taxes collected pursuant to this chapter are taxes collected by the director of revenue within the meaning of section 139.031.

(L. 1987 H.B. 700 § 18, A.L. 1989 S.B. 250, A.L. 2004 S.B. 1299, A.L. 2009 H.B. 577)

Revocation, suspension or refusal to renew license of licensee,grounds--notice--hearing.

384.065. The director may suspend, revoke, or refuse to renew the license of a surplus lines licensee after notice and hearing as provided under the applicable provisions of this state's laws upon any one or more of the following grounds:

(1) Removal of the resident surplus lines licensee's office from this state;

(2) Removal of the resident surplus lines licensee's office accounts and records from this state during the period during which such accounts and records are required to be maintained under section 384.059;

(3) Closing of the surplus lines licensee's office for a period of more than thirty business days, unless permission is granted by the director;

(4) Failure to make and file required reports;

(5) Failure to transmit required tax on surplus lines premiums;

(6) Violation of any provision of sections 384.011 to 384.071; or

(7) For any cause for which an insurance license could be denied, revoked, suspended or renewal refused under section 375.141.

(L. 1987 H.B. 700 § 19, A.L. 2004 S.B. 1299)

Cause of action on contracts of insurance may be brought againstinsurer--policy to contain appropriate language--insurer deemed tohave subjected himself to this section--service of process.

384.068. 1. A surplus lines insurer may be sued upon any cause of action arising in this state under any surplus lines insurance contract made by it or evidence of insurance issued or delivered by the surplus lines licensee pursuant to the procedure provided in sections 375.256 to 375.266. Any such policy issued by the surplus lines licensee shall contain a provision stating the substance of this section and designating the person to whom the director shall mail process.

2. Each surplus lines insurer assuming a surplus lines insurance shall be deemed thereby to have subjected itself to the provisions of sections 384.011 to 384.071.

3. The remedies provided in this section are in addition to any other methods provided by law for service of process upon insurers.

(L. 1987 H.B. 700 § 20)

Effective 7-1-87

Violations, penalties.

384.071. 1. If the director determines that a person has engaged, is engaging in, or has taken a substantial step toward engaging in an act, practice or course of business constituting a violation of sections 384.011 to 384.071 or a rule adopted or order issued pursuant thereto, or that a person has materially aided or is materially aiding an act, practice, omission, or course of business constituting a violation of sections 384.011 to 384.071 or a rule adopted or order issued pursuant thereto, the director may issue such administrative orders as authorized under section 374.046. A violation of any of these sections is a level three violation under section 374.049.

2. If the director believes that a person has engaged, is engaging in, or has taken a substantial step toward engaging in an act, practice or course of business constituting a violation of sections 384.011 to 384.071 or a rule adopted or order issued pursuant thereto, or that a person has materially aided or is materially aiding an act, practice, omission, or course of business constituting a violation of sections 384.011 to 384.071 or a rule adopted or order issued pursuant thereto, the director may maintain a civil action for relief authorized under section 374.048. A violation of any of these sections is a level three violation under section 374.049.

3. Any surplus lines licensee who in this state represents or aids a nonadmitted insurer in violation of the provisions of sections 384.011 to 384.071 may be found guilty of a class B misdemeanor and subject to a fine not in excess of one thousand dollars.

4. The above penalties are not exclusive remedies.

(L. 1987 H.B. 700 § 21, A.L. 2007 S.B. 66)


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