§ 23-65-308 - Licensing of surplus lines broker.
23-65-308. Licensing of surplus lines broker.
Any person, while licensed as a resident insurance producer of this state as to property, casualty, surety, and marine insurance, who has held the license in this or another state, or both, for three (3) years prior to application for a surplus lines broker's license, and who is deemed by the Insurance Commissioner to be competent and trustworthy, or a nonresident applicant holding a surplus lines broker license in his or her country of residency, may be licensed as a surplus lines broker as follows:
(1) Application to the commissioner for the license shall be made on forms furnished by the commissioner;
(2) The license fee shall be in the amount stated in 23-61-401(10) for each license year during any part of which the license is in force and shall be paid to the commissioner. The license year shall be from the date of issuance of the license to January 1 next after its issue;
(3) (A) Prior to issuance of the license, a resident applicant shall file with the commissioner securities acceptable to the commissioner in favor of the State of Arkansas in the penal sum of fifty thousand dollars ($50,000), aggregate liability, with unaffiliated entities approved by the commissioner. Thereafter for as long as the license remains in effect, the resident applicant shall keep the securities in force and unimpaired.
(B) The securities shall be conditioned that the broker will conduct business under the license in accordance with the provisions of this subchapter and that he or she will promptly remit the taxes provided by the law.
(C) No securities shall be terminated unless not less than sixty (60) days' prior written notice thereof is filed with the commissioner.
(D) No security shall be required of a nonresident applicant licensed in the applicant's state of residency.
(4) (A) (i) Prior to issuance of the license, the applicant must pass a written examination as to his or her competence to act as a surplus lines broker, which shall be required by the commissioner.
(ii) No examination shall be required of a nonresident applicant duly licensed in the applicant's state of residency.
(B) The commissioner shall give, conduct, and grade all examinations, or he or she may arrange to have examinations administered and graded by an independent testing service as specified by contract in a fair and impartial manner and without unfair discrimination between individuals examined.
(C) The commissioner may require a reasonable waiting period before reexamination of an applicant who failed to pass a previous similar examination.
(D) The examination fee shall be the same as that charged an applicant for license as an agent, broker, or solicitor under 23-61-401.