§ 58-21-65. Licensing of surplus lines licensee.
§ 58‑21‑65. Licensing of surplus lines licensee.
(a) No agent or brokerlicensed by the Commissioner shall procure any contract of surplus linesinsurance with any nonadmitted insurer, unless he possesses a current surpluslines insurance license issued by the Commissioner.
(b) The Commissionershall issue a surplus lines license to any qualified holder of a currentproperty broker's or agent's license, but only when the broker or agent has:
(1) Remitted the fiftydollars ($50.00) annual fee to the Commissioner;
(2) Submitted acompleted license application on a form supplied by the Commissioner, and theapplication has been approved by the Commissioner;
(3) Passed a qualifyingexamination approved by the Commissioner; except that all holders of a licenseprior to July 11, 1985 shall be deemed to have passed such an examination; and
(4) Repealed by SessionLaws 2004‑199, s. 20(c), effective August 17, 2004.
(c) Corporations shallbe eligible to be resident surplus lines licensees, upon the following conditions:
(1) The corporatelicensee shall list individuals within the corporation who have satisfied allrequirements of this Article to become surplus lines licensees; and
(2) Only thoseindividuals listed on the corporate license and who are surplus lines licenseesshall transact surplus lines business.
(d) Each surplus lineslicense shall be issued on September 1 of each year and expire August 31 of thefollowing year unless renewed. Application for renewal shall be made 30 daysbefore the expiration date. The license shall be renewed upon payment of theannual license fee and compliance with the other applicable provisions of thissection. Any person who places surplus lines insurance without a valid surpluslines license in effect shall pay a penalty of one thousand dollars ($1,000)and be subject to such other penalties as provided by law.
The clear proceeds of civilpenalties provided for in this subsection shall be remitted to the CivilPenalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
(e) Any person who doesnot renew a surplus lines license and applies for another surplus lines licensemore than two years after the expiration date of the previous license shall berequired to satisfy every condition in this section, including the written exam,before the Commissioner issues another surplus lines license to that person.
(f) A person licensedas a surplus lines licensee under the laws of a state bordering this State maybe licensed as a surplus lines licensee under this Article, if: (i) the laws ofthe bordering state are substantially similar to the provisions of this Articleand (ii) the bordering state has a law or regulation substantially similar tothis subsection that permits surplus lines licensees licensed under thisArticle to be licensed by the bordering state and (iii) the person complieswith all requirements of this Article and submits himself or herself to theCommissioner's jurisdiction. Nonresident surplus lines licensees shall belicensed in accordance with Article 33 of this Chapter. (1985, c. 688, s. 1; 1985(Reg. Sess., 1986), c. 928, s. 6; c. 1013, ss. 4, 16; 1987, c. 629, s. 18; c.752, s. 6; 1987 (Reg. Sess., 1988), c. 975, s. 14; 1991, c. 212, s. 1; c. 644,s. 41; 1998‑215, s. 85; 2004‑199, s. 20(c); 2008‑124, s.10.2; 2009‑566, s. 11.)