38.2-1857.2 - Applications for surplus lines brokers' licenses.
§ 38.2-1857.2. Applications for surplus lines brokers' licenses.
A. Every original applicant for a surplus lines broker's license shall applyfor such license in a form and manner prescribed by the Commission, andcontaining any information the Commission requires.
B. Prior to issuance of a license, the applicant shall file with theCommission a certification or attestation that the applicant has, andthereafter shall keep in force for as long as the license remains in effect,a bond in favor of this Commonwealth in the amount of $25,000 with corporatesureties licensed by the Commission. The bond shall be conditioned that thebroker will conduct business under the license in accordance with theprovisions of the surplus lines insurance law and that he will promptly remitthe taxes provided by such law. The bond shall not be terminated unless atleast thirty calendar days' prior written notice of the termination is filedwith the Commission. If, prior to the expiration date of the bond, thelicensed surplus lines broker fails to file with the Commission acertification or attestation that a new bond satisfying the requirements ofthis section has been put into effect, the surplus lines broker license shallterminate and the licensee shall be required to apply for a new surplus linesbroker license.
C. Notwithstanding any other provisions of this title, a person licensed as asurplus lines broker in his home state or province shall receive anonresident surplus lines broker license subject to meeting the requirementsset forth in § 38.2-1857.9.
D. Except where prohibited by state or federal law, by submitting anapplication for license, the applicant shall be deemed to have appointed theclerk of the Commission as the agent for service of process on the applicantin any action or proceeding arising in this Commonwealth out of or inconnection with the exercise of the license. Such appointment of the clerk ofthe Commission as agent for service of process shall be irrevocable duringthe period within which a cause of action against the applicant may arise outof transactions with respect to subjects of insurance in this Commonwealth.Service of process on the clerk of the Commission shall conform to theprovisions of Chapter 8 (§ 38.2-800 et seq.) of this title.
E. A business entity acting as a surplus lines broker is required to obtain asurplus lines broker license. In addition to the other requirements in thissection, and before approving the application, the Commission shall find that:
1. The business entity has paid the fee set forth in this section; and
2. The business entity has designated a licensed Virginia Property andCasualty insurance agent to be responsible for the business entity'scompliance with the insurance laws, rules and regulations of thisCommonwealth.
F. The Commission may require any documents reasonably necessary to verifythe information contained in an application.
(2001, c. 706; 2008, c. 213.)