Montana Code 33-2-305. Licensing of surplus lines insurance producer — license fee
33-2-305. Licensing of surplus lines insurance producer — license fee. (1) If Montana is the home state of the insured, the person placing a contract of surplus lines insurance with an unauthorized insurer must possess a current surplus lines insurance producer‘s license issued by the commissioner.
Terms Used In Montana Code 33-2-305
- Business entity: means a corporation, a limited liability company, an association, a partnership, a limited liability partnership, or other legal entity. See Montana Code 33-2-301
- Contract: A legal written agreement that becomes binding when signed.
- Home state: means , with respect to an insured:
(i)the state in which the insured maintains its principal place of business or, in the case of an individual, the individual's principal residence;
(ii)if 100% of the insured risk is located outside the state referred to in subsection (3)(k)(i), the state with the greatest allocated percentage of the insured's taxable premium for that surplus lines insurance contract;
(iii)if more than one insured from an affiliated group are named insureds on a single surplus lines insurance contract, the home state as determined under subsection (3)(k)(i) or (3)(k)(ii) for the member of the affiliated group that has the largest percentage of premium attributed to it under the surplus lines insurance contract; or
(iv)if a group policyholder pays 100% of the premium from its own funds, the home state of the group policyholder as determined under subsection (3)(k)(i) or, if a group policyholder does not pay 100% of the premiums from its own funds, the home state of the group member as determined under subsection (3)(k)(i). See Montana Code 33-2-301
- Independently procured insurance: means surplus lines insurance procured directly by an insured from an eligible surplus lines insurer. See Montana Code 33-2-301
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Property: means real and personal property. See Montana Code 1-1-205
- Surplus lines insurance: means any property, casualty, or inland marine insurance permitted in a state to be placed directly or through a surplus lines insurance producer with an unauthorized insurer eligible to accept the insurance. See Montana Code 33-2-301
- Surplus lines insurance producer: means an individual or business entity licensed under 33-2-305 to place surplus lines insurance on risks resident, located, or to be performed in this state with unauthorized insurers eligible to accept the insurance. See Montana Code 33-2-301
- Unauthorized insurer: means , with respect to a state, an insurer not authorized to transact the business of insurance in the state. See Montana Code 33-2-301
(2)The commissioner shall issue licenses to persons to act as surplus lines insurance producers on either a resident or nonresident basis. To be eligible for a resident surplus lines insurance producer license, the person must hold a current property and casualty insurance producer license.
(3)Persons applying for a resident surplus lines insurance producer license shall:
(a)remit to the commissioner the fee prescribed by 33-2-708; and
(b)submit to the commissioner a completed license application in a form and manner approved by the commissioner.
(4)Persons applying for a nonresident surplus lines insurance producer license shall comply with 33-17-401.
(5)The licensee shall renew the license on a form prescribed by the commissioner. The commissioner may establish rules for biennial renewal of the license. A license lapses if not renewed.
(6)A business entity is eligible to be licensed as a surplus lines insurance producer if:
(a)the business entity license lists the individuals within the business entity who have satisfied the requirements of this part to become surplus lines insurance producers; and
(b)only those individuals listed on the business entity license transact surplus lines insurance.
(7)This section may not be construed to require agents, producers, or brokers acting as intermediaries between a surplus lines insurance producer and an unauthorized insurer under this part to hold a valid Montana surplus lines insurance producer’s license.
(8)This section may not be construed to require a surplus lines insurance producer license for independently procured insurance.
(9)The commissioner may participate in the national association of insurance commissioners’ producer licensing database regarding surplus lines insurance producer licensing.