Virginia Code 38.2-4811.1: Surplus lines coverage placed with domestic surplus lines insurers
A. The Commission may license pursuant to § 38.2-1024 an insurer domiciled in the Commonwealth as a domestic surplus lines insurer if all of the following are satisfied:
Terms Used In Virginia Code 38.2-4811.1
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Domestic surplus lines insurer: means a domestic surplus lines insurer licensed by the Commission pursuant to § Virginia Code 38.2-4805.2
- Insurer: means an insurance company. See Virginia Code 38.2-100
- Nonadmitted insurer: means an insurer not licensed to engage in the business of insurance in this Commonwealth. See Virginia Code 38.2-4805.2
- State: means any commonwealth, state, territory, district or insular possession of the United States. See Virginia Code 38.2-100
- Surplus lines broker: means an individual or business entity licensed pursuant to Article 5. See Virginia Code 38.2-4805.2
- Surplus lines insurance: means any property and casualty insurance permitted to be placed directly by an insured or through a surplus lines broker with an eligible nonadmitted insurer. See Virginia Code 38.2-4805.2
1. The insurer possesses a policyholder surplus of at least $15 million; and
2. The board of directors of the insurer has passed a resolution seeking to be a domestic surplus lines insurer in the Commonwealth.
B. For the purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010 (15 U.S.C. § 8201 et seq.), a domestic surplus lines insurer shall be considered a nonadmitted insurer as the term is referenced in such Act, with respect to risks insured in the Commonwealth.
C. A domestic surplus lines insurer is only authorized to write the types of insurance in the Commonwealth that a surplus lines broker may procure with a nonadmitted insurer approved by the Commission pursuant to § 38.2-4811.
D. A domestic surplus lines insurer may only write surplus lines insurance in the Commonwealth where placed by a surplus lines broker pursuant to Chapter 48 of Title 58.1.
F. Policies issued by a domestic surplus lines insurer are not subject to protections of or other provisions of the Virginia Property and Casualty Insurance Guaranty Association established under Chapter 16 (§ 38.2-1600 et seq.).
G. All financial and solvency requirements imposed by the Commonwealth’s law upon domestic admitted insurers shall apply to domestic surplus lines insurers unless domestic surplus lines insurers are otherwise specifically exempted. For the purposes of handling the rehabilitation, liquidation, or conservation of a domestic surplus lines insurer, the provisions of Chapter 15 (§ 38.2-1500 et seq.) shall apply.
H. Policies issued by a domestic surplus lines insurer 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.
2018, c. 205.