Collapse to view only § 8206. Definitions

§ 8201. Reporting, payment, and allocation of premium taxes
(a) Home State’s exclusive authority
(b) Allocation of nonadmitted premium taxes
(1) In general
(2) Effective date
Except as expressly otherwise provided in such compact or other procedures, any such compact or other procedures—
(A) if adopted on or before the expiration of the 330-day period that begins on July 21, 2010, shall apply to any premium taxes that, on or after July 21, 2010, are required to be paid to any State that is subject to such compact or procedures; and
(B) if adopted after the expiration of such 330-day period, shall apply to any premium taxes that, on or after January 1 of the first calendar year that begins after the expiration of such 330-day period, are required to be paid to any State that is subject to such compact or procedures.
(3) Report
(4) Nationwide system
(c) Allocation based on tax allocation report
(Pub. L. 111–203, title V, § 521, July 21, 2010, 124 Stat. 1589.)
§ 8202. Regulation of nonadmitted insurance by insured’s home State
(a) Home State authority
(b) Broker licensing
(c) Enforcement provision
(d) Workers’ compensation exception
(Pub. L. 111–203, title V, § 522, July 21, 2010, 124 Stat. 1590.)
§ 8203. Participation in national producer database

After the expiration of the 2-year period beginning on July 21, 2010, a State may not collect any fees relating to licensing of an individual or entity as a surplus lines broker in the State unless the State has in effect at such time laws or regulations that provide for participation by the State in the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of surplus lines brokers and the renewal of such licenses.

(Pub. L. 111–203, title V, § 523, July 21, 2010, 124 Stat. 1590.)
§ 8204. Uniform standards for surplus lines eligibility
A State may not—
(1) impose eligibility requirements on, or otherwise establish eligibility criteria for, nonadmitted insurers domiciled in a United States jurisdiction, except in conformance with such requirements and criteria in sections 5A(2) and 5C(2)(a) of the Non-Admitted Insurance Model Act, unless the State has adopted nationwide uniform requirements, forms, and procedures developed in accordance with section 8201(b) of this title that include alternative nationwide uniform eligibility requirements; or
(2) prohibit a surplus lines broker from placing nonadmitted insurance with, or procuring nonadmitted insurance from, a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC.
(Pub. L. 111–203, title V, § 524, July 21, 2010, 124 Stat. 1590.)
§ 8205. Streamlined application for commercial purchasers
A surplus lines broker seeking to procure or place nonadmitted insurance in a State for an exempt commercial purchaser shall not be required to satisfy any State requirement to make a due diligence search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from admitted insurers if—
(1) the broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
(2) the exempt commercial purchaser has subsequently requested in writing the broker to procure or place such insurance from a nonadmitted insurer.
(Pub. L. 111–203, title V, § 525, July 21, 2010, 124 Stat. 1591.)
§ 8206. DefinitionsFor purposes of this subchapter, the following definitions shall apply:
(1) Admitted insurer
(2) Affiliate
(3) Affiliated group
(4) ControlAn entity has “control” over another entity if—
(A) the entity directly or indirectly or acting through 1 or more other persons owns, controls, or has the power to vote 25 percent or more of any class of voting securities of the other entity; or
(B) the entity controls in any manner the election of a majority of the directors or trustees of the other entity.
(5) Exempt commercial purchaserThe term “exempt commercial purchaser” means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
(A) The person employs or retains a qualified risk manager to negotiate insurance coverage.
(B) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of $100,000 in the immediately preceding 12 months.
(C)
(i) The person meets at least 1 of the following criteria:(I) The person possesses a net worth in excess of $20,000,000, as such amount is adjusted pursuant to clause (ii).(II) The person generates annual revenues in excess of $50,000,000, as such amount is adjusted pursuant to clause (ii).(III) The person employs more than 500 full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than 1,000 employees in the aggregate.(IV) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least $30,000,000, as such amount is adjusted pursuant to clause (ii).(V) The person is a municipality with a population in excess of 50,000 persons.
(ii) Effective on the fifth January 1 occurring after July 21, 2010, and each fifth January 1 occurring thereafter, the amounts in subclauses (I), (II), and (IV) of clause (i) shall be adjusted to reflect the percentage change for such 5-year period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
(6) Home State
(A) In generalExcept as provided in subparagraph (B), the term “home State” means, with respect to an insured—
(i) the State in which an insured maintains its principal place of business or, in the case of an individual, the individual’s principal residence; or
(ii) if 100 percent of the insured risk is located out of the State referred to in clause (i), the State to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
(B) Affiliated groups
(7) Independently procured insurance
(8) NAIC
(9) Nonadmitted insurance
(10) Non-Admitted Insurance Model Act
(11) Nonadmitted insurerThe term “nonadmitted insurer”—
(A) means, with respect to a State, an insurer not licensed to engage in the business of insurance in such State; but
(B) does not include a risk retention group, as that term is defined in section 3901(a)(4) of this title.
(12) Premium tax
(13) Qualified risk managerThe term “qualified risk manager” means, with respect to a policyholder of commercial insurance, a person who meets all of the following requirements:
(A) The person is an employee of, or third-party consultant retained by, the commercial policyholder.
(B) The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance.
(C) The person—
(i)(I) has a bachelor’s degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a State insurance commissioner or other State regulatory official or entity to demonstrate minimum competence in risk management; and(II)(aa) has 3 years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis, or purchasing commercial lines of insurance; or(bb) has—(AA) a designation as a Chartered Property and Casualty Underwriter (in this subparagraph referred to as “CPCU”) issued by the American Institute for CPCU/Insurance Institute of America;(BB) a designation as an Associate in Risk Management (ARM) issued by the American Institute for CPCU/Insurance Institute of America;(CC) a designation as Certified Risk Manager (CRM) issued by the National Alliance for Insurance Education & Research;(DD) a designation as a RIMS Fellow (RF) issued by the Global Risk Management Institute; or(EE) any other designation, certification, or license determined by a State insurance commissioner or other State insurance regulatory official or entity to demonstrate minimum competency in risk management;
(ii)(I) has at least 7 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and(II) has any 1 of the designations specified in subitems (AA) through (EE) of clause (i)(II)(bb);
(iii) has at least 10 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or
(iv) has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a State insurance commissioner or other State regulatory official or entity to demonstrate minimum competence in risk management.
(14) Reinsurance
(15) Surplus lines broker
(16) State
(Pub. L. 111–203, title V, § 527, July 21, 2010, 124 Stat. 1591.)