1. Surplus lines insurance may be placed by a surplus lines insurance producer with a nonadmitted insurer or domestic surplus lines insurer only if all of the following requirements are met:

 a. The proposed nonadmitted insurer or domestic surplus lines insurer is an eligible surplus lines insurer.
 b. The proposed nonadmitted insurer or domestic surplus lines insurer is authorized to write the type of insurance sought in this state in its domiciliary jurisdiction.
 c. Unless otherwise exempt from this requirement, after a diligent search the full amount or type of insurance cannot be obtained from an admitted insurer.
 d. All other requirements of this chapter are met.

Terms Used In Iowa Code 515I.3

  • Admitted insurer: means an insurer licensed to do insurance business in this state. See Iowa Code 515I.2
  • Commissioner: means the commissioner of insurance, or the commissioner's designees. See Iowa Code 515I.2
  • Domestic surplus lines insurer: means a domestic insurer that has been authorized by the commissioner pursuant to this chapter to do business as a domestic surplus lines insurer with which a surplus lines insurance producer may place surplus lines insurance. See Iowa Code 515I.2
  • Eligible surplus lines insurer: means any of the following:
     a. See Iowa Code 515I.2
  • 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
  • Home state: means :
     a. See Iowa Code 515I.2
  • Insurer: means the same as defined in section 507. See Iowa Code 515I.2
  • 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.
  • Nonadmitted insurer: means an insurer not licensed to do insurance business in this state. See Iowa Code 515I.2
  • Person: means the same as defined in section 507. See Iowa Code 515I.2
  • placed: means that an eligible surplus lines insurer has accepted a premium and issued an insurance policy or contract for a particular risk. See Iowa Code 515I.2
  • Premium tax: means the tax imposed by the state on a contract of insurance equal to the applicable percent, as provided in section 432. See Iowa Code 515I.2
  • Sale: means any sale, offer for sale, or attempt to sell or lease any land, to the public in this state, for cash or on credit. See Iowa Code 543C.1
  • 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
  • Surplus lines insurance: means any property and casualty insurance in this state on properties, risks, or exposures, located or to be performed in this state, that is placed through a surplus lines insurance producer with an eligible surplus lines insurer. See Iowa Code 515I.2
  • Surplus lines insurance producer: means a person licensed pursuant to chapter 522B to sell, solicit, or negotiate surplus lines insurance. See Iowa Code 515I.2
 2. a. In addition to the full amount of gross premiums charged by the nonadmitted insurer or domestic surplus lines insurer for the insurance on which a premium tax is imposed for surplus lines insurance for which the insured’s home state is Iowa, a surplus lines insurance producer shall collect and pay to the state of Iowa the appropriate amount of premium tax as provided in section 432.1 for surplus lines insurance. The commissioner shall adopt rules to specify the use of credits or deductions that may be applied to the premium tax.

 b. The tax on any portion of the premium unearned at the termination of the surplus lines insurance that has been credited by the state shall be returned to the policyholder directly by the surplus lines insurance producer. The surplus lines insurance producer is prohibited from rebating, for any reason, any part of the tax.
 3. This section shall not apply to a person properly licensed as an insurance producer, who, for a fee and pursuant to a written agreement, is engaged solely to offer advice, counsel, opinion, or service to an insured with respect to the benefits, advantages, or disadvantages promised under any proposed or in-force policy of insurance if the person does not, directly or indirectly, participate in the sale, solicitation, or negotiation of insurance on behalf of the insured.
 4. Insurance placed under this section shall be valid and enforceable as to all parties.
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