§ 58-21-45. Evidence of the insurance; changes; penalty.
§ 58‑21‑45. Evidence of the insurance; changes; penalty.
(a) As soon as surpluslines insurance has been placed, the producing broker or surplus lines licenseeshall promptly deliver the policy to the insured. If the policy is not thenavailable, the broker or licensee shall promptly deliver to the insured acertificate described in subsection (d) of this section, cover note, binder, orother evidence of insurance. The certificate described in subsection (d), covernote, binder, or other evidence of insurance shall be executed by the surpluslines licensee and shall show the description and location of the subject ofthe insurance, coverages including any material limitations other than those instandard forms, a general description of the coverages of the insurance, thepremium and rate charged and taxes to be collected from the insured, and thename and address of the insured and surplus lines insurer or insurers andproportion of the entire risk assumed by each, and the name of the surpluslines licensee and the licensee's license number.
(b) No producing brokeror surplus lines licensee shall issue or deliver any evidence of insurance orpurport to insure or represent that insurance will be or has been written byany eligible surplus lines insurer, or a nonadmitted insurer pursuant to G.S.58‑21‑25, unless he has authority from the insurer to cause therisk to be insured, or has received information from the insurer in the regularcourse of business that such insurance has been granted.
(c) If, after deliveryof any such evidence of insurance there is any change in the identity of theinsurers, or the proportion of the risk assumed by any insurer, or any othermaterial change in coverage as stated in the producing broker's or surpluslines licensee's original evidence of insurance, or in any other material as tothe insurance coverage so evidenced, the producing broker or surplus lineslicensee shall promptly issue and deliver to the insured an appropriatesubstitute for or endorsement of the original document, accurately showing thecurrent status of the coverage and the insurers responsible thereunder.
(d) As soon asreasonably possible after the placement of any such insurance the producingbroker or surplus lines licensee shall deliver a copy of the policy or, if notavailable, a certificate of insurance to the insured to replace any evidence ofinsurance previously issued. Each certificate or policy of insurance shallcontain or have attached thereto a complete record of all policy insuringagreements, conditions, exclusions, clauses, endorsements, or any othermaterial facts that would regularly be included in the policy.
(e) Any surplus lineslicensee or producing broker who fails to comply with the requirements of thissection shall be subject to the penalties provided in G.S. 58‑21‑105.
(f) Every evidence ofinsurance negotiated, placed, or procured under the provisions of this Articleissued by the surplus lines licensee shall bear the name of the licensee andthe following legend in 12 point type and in contrasting color or in 12 pointtype and underlined and in bold print: "The insurance company with whichthis coverage has been placed is not licensed by the State of North Carolinaand is not subject to its supervision. In the event of the insolvency of theinsurance company, losses under this policy will not be paid by any Stateinsurance guaranty or solvency fund." (1985, c. 688, s. 1; 2006‑105, s. 2.7.)