Relating to requirements for domestic surplus lines insurers. Effective 7-1-19

This bill establishes requirements for domestic surplus lines insurers in the state. A “domestic surplus lines insurer” is an insurer that is domiciled in this state and has been authorized by the insurance commission to do business as a domestic surplus lines insurer with which a surplus lines insurance producer may place surplus lines insurance. The bill specifies requirements that a nonadmitted insurer domiciled in this state must meet to be considered a domestic surplus lines insurer. A domestic surplus lines insurer is considered a nonadmitted insurer as that term is used in the federal Nonadmitted and Reinsurance Reform Act of 2010. A domestic surplus lines insurer that has been authorized by the commissioner is an eligible surplus lines insurer and is subject to all requirements of Code chapter 515I that are applicable to an eligible surplus lines insurer. A domestic surplus lines insurer is authorized to write any kind of insurance that a nonadmitted insurer not domiciled in this state is eligible to write. Notwithstanding any other provision of law to the contrary, a policy or contract issued in this state by a domestic surplus lines insurer is subject to the same taxes as are assessed on a policy or contract issued by a nonadmitted insurer, including the premium tax on surplus lines insurance, but is not subject to other taxes levied on an admitted insurer, whether domestic or foreign. A policy or contract issued by a domestic surplus lines insurer is not subject to the jurisdiction of the Iowa insurance guaranty association pursuant to Code chapter 515B or the Iowa life and health insurance guaranty association pursuant to Code chapter 508C. All financial and solvency requirements imposed in this state upon a domestic admitted insurer are applicable to a domestic surplus lines insurer unless a domestic surplus lines insurer is specifically exempted from such requirements. The bill exempts a policy or contract issued by a domestic surplus lines insurer from all requirements imposed in this state relating to insurance rating plans, policy or contract forms, policy or contract cancellation and nonrenewal, and premiums charged to the insured in the same manner and to the same extent as a policy or contract issued by a nonadmitted insurer domiciled in another state.