33-2-1509. Applicability of minimum standards. (1) The provisions of 33-2-1510 apply if, in any calendar year, the aggregate amount of gross written premiums on business placed with a controlled insurer by a controlling producer is equal to or greater than 5% of the admitted assets of the controlled insurer, as reported in the controlled insurer’s quarterly statement filed as of September 30 of the prior year.

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(2)Notwithstanding the provisions of subsection (1), the provisions of 33-2-1510 do not apply if:

(a)the controlling producer:

(i)does not receive compensation based upon the amount of premiums written in connection with the insurance and places insurance only with:

(A)the controlled insurer; or

(B)the controlled insurer and a member or members of the controlled insurer’s holding company system or the controlled insurer’s parent, affiliate, or subsidiary; and

(ii)accepts insurance placements only from nonaffiliated subproducers and not directly from insureds; and

(b)except for insurance business written through a residual market facility, the controlled insurer accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.