Utah Admin. Code R590-171-7 - Conditions for Marketing Insurance with a Surplus Lines Insurer
A producer may not solicit business on behalf of a surplus lines insurer except as allowed in this section.
(1) A producer may advertise the availability
of an insurance product for the insurance coverages and classes included on the
export list to potential insureds and other producers.
(2)
(a) A
surplus lines producer may advertise its services and product lines to other
producers.
(b) A surplus lines
producer advertisement:
(i) shall identify
that the insurance will be placed with a surplus lines insurer;
(ii) may not identify the insurer by
name;
(iii) may not act as a
solicitation on behalf of any surplus lines insurer; and
(iv) may not identify specific rates or
specific policy provisions.
(3) Once negotiations over the available
terms and conditions for specific coverages and classes begin, the producer
shall disclose, in writing, to the potential insured:
(a) that the insurance will be placed through
a surplus lines insurer;
(b) the
name of the insurer;
(c) that the
producer is not a producer of the potential insurer because surplus lines
insurers are not permitted to appoint producers;
(d) that the surplus lines market is a
specialty market with limited regulatory oversight by the commissioner, and
specifically, there is no regulation of policy coverage forms or rates;
and
(e) that no protection is given
under any Utah guaranty fund association.
(4) Subject to Section
31A-23a-501, a surplus lines
producer may:
(a) originate surplus lines
insurance;
(b) accept an
application for surplus lines insurance from a producer licensed as to the
kinds of insurance involved; and
(c) compensate the originating producer
involved in the transaction.
(5)
(a)
Only the portion of a risk that is unacceptable to the admitted market may be
placed with a surplus lines insurer.
(b) If it is not possible to obtain the full
amount of insurance required by segmenting the risk, or if the only portion
that the admitted market will write is incidental to the principal elements of
coverage, it is permissible to place the full amount with a surplus lines
insurer.
(c) If a full amount is
placed with a surplus lines insurer under Subsection (5)(b), an explanation
shall be provided in the submission documentation outlined in Section
R590-171-8.
Notes
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