Iowa Code 515I.4 – Requirements for eligible surplus lines insurers
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Terms Used In Iowa Code 515I.4
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
515I.4 Requirements for eligible surplus lines insurers.
1. When this state is the home state of the insured, a nonadmitted insurer shall not place
any surplus lines insurance business in this state unless the insurer has been approved for such activity by the commissioner. A nonadmitted insurer seeking to qualify as an eligible surplus lines insurer shall submit a request to so qualify in a form and format as directed by the commissioner which demonstrates all of the following:
a. Capital and surplus or its equivalent under the laws of the insurer’s domiciliary jurisdiction which equals the greatest of the following:
(1) The minimum capital and surplus requirements under the laws of this state. (2) Fifteen million dollars.
(3) The risk-based capital level requirements pursuant to chapter 521E.
b. Evidence that the nonadmitted insurer is in good standing with its domiciliary regulator.
2. The commissioner may waive the requirements of this section or set specific requirements on a case-by-case basis upon an affirmative finding of acceptability by the commissioner that the placement of insurance with the nonadmitted insurer is necessary and will not be detrimental to the public and to policyholders. In determining whether business may be placed with a nonadmitted insurer, the commissioner shall consider all of the following:
a. The interests of the public and policyholders.
b. The length of time the insurer has been licensed to do insurance business in its domiciliary jurisdiction and elsewhere.
c. The unavailability of particular coverages from other admitted insurers or eligible surplus lines insurers in this state.
d. The size of the nonadmitted insurer as measured by the insurer’s assets, capital and surplus, reserves, premium writings, insurance in force, or other appropriate criteria.
e. The kinds of business the nonadmitted insurer writes, the insurer’s net exposure, and the extent to which the insurer’s business is diversified among several lines of insurance and geographic locations.
f. The past and projected trend in the size of the nonadmitted insurer’s capital and surplus considering such factors as premium growth, operating history, loss and expense ratios, or other appropriate criteria.
3. Eligible surplus lines insurers shall not be required to file or seek approval of their forms and rates.
2012 Acts, ch 1025, §4, 22; 2021 Acts, ch 181, §32
1. When this state is the home state of the insured, a nonadmitted insurer shall not place
any surplus lines insurance business in this state unless the insurer has been approved for such activity by the commissioner. A nonadmitted insurer seeking to qualify as an eligible surplus lines insurer shall submit a request to so qualify in a form and format as directed by the commissioner which demonstrates all of the following:
a. Capital and surplus or its equivalent under the laws of the insurer’s domiciliary jurisdiction which equals the greatest of the following:
(1) The minimum capital and surplus requirements under the laws of this state. (2) Fifteen million dollars.
(3) The risk-based capital level requirements pursuant to chapter 521E.
b. Evidence that the nonadmitted insurer is in good standing with its domiciliary regulator.
2. The commissioner may waive the requirements of this section or set specific requirements on a case-by-case basis upon an affirmative finding of acceptability by the commissioner that the placement of insurance with the nonadmitted insurer is necessary and will not be detrimental to the public and to policyholders. In determining whether business may be placed with a nonadmitted insurer, the commissioner shall consider all of the following:
a. The interests of the public and policyholders.
b. The length of time the insurer has been licensed to do insurance business in its domiciliary jurisdiction and elsewhere.
c. The unavailability of particular coverages from other admitted insurers or eligible surplus lines insurers in this state.
d. The size of the nonadmitted insurer as measured by the insurer’s assets, capital and surplus, reserves, premium writings, insurance in force, or other appropriate criteria.
e. The kinds of business the nonadmitted insurer writes, the insurer’s net exposure, and the extent to which the insurer’s business is diversified among several lines of insurance and geographic locations.
f. The past and projected trend in the size of the nonadmitted insurer’s capital and surplus considering such factors as premium growth, operating history, loss and expense ratios, or other appropriate criteria.
3. Eligible surplus lines insurers shall not be required to file or seek approval of their forms and rates.
2012 Acts, ch 1025, §4, 22; 2021 Acts, ch 181, §32