Md. Code, Insurance § 3-319
This is the official text of Md. Code, Insurance § 3-319, part of Maryland’s Code, Insurance — regulates insurance companies and the policies they sell.
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§3–319.
Official statutory text
(a) A surplus lines broker may not place surplus lines insurance with an unauthorized insurer that:
(1) has not been approved by the Commissioner as a surplus lines insurer in accordance with § 3–318 of this subtitle;
(2) for an insurer not domiciled in the State, has not qualified under § 3–303 of this subtitle;
(3) has been determined by the Commissioner to be insolvent or unsafe financially under subsection (b) of this section; or
(4) has been determined by the Commissioner to have refused to pay just claims.
(b) (1) The Commissioner shall direct that surplus lines insurance may not be placed with a surplus lines insurer that has been approved by the Commissioner if the Commissioner determines that the surplus lines insurer:
(i) is not in a safe or solvent financial condition; or
(ii) has refused to pay just claims.
(2) After written notice of a determination made by the Commissioner under paragraph (1) of this subsection is mailed by the Commissioner to qualified surplus lines brokers, surplus lines insurance may not be placed with the surplus lines insurer.
(c) Notwithstanding any other provision of this subtitle, a surplus lines broker may not place surplus lines insurance with an insurer if the broker knows, or reasonably should know, that the insurer is in an unsafe or insolvent financial condition.
(d) A qualified surplus lines broker may not place a risk in an unauthorized insurer that has not previously appointed the Commissioner as agent for the acceptance of service of process.
(1) has not been approved by the Commissioner as a surplus lines insurer in accordance with § 3–318 of this subtitle;
(2) for an insurer not domiciled in the State, has not qualified under § 3–303 of this subtitle;
(3) has been determined by the Commissioner to be insolvent or unsafe financially under subsection (b) of this section; or
(4) has been determined by the Commissioner to have refused to pay just claims.
(b) (1) The Commissioner shall direct that surplus lines insurance may not be placed with a surplus lines insurer that has been approved by the Commissioner if the Commissioner determines that the surplus lines insurer:
(i) is not in a safe or solvent financial condition; or
(ii) has refused to pay just claims.
(2) After written notice of a determination made by the Commissioner under paragraph (1) of this subsection is mailed by the Commissioner to qualified surplus lines brokers, surplus lines insurance may not be placed with the surplus lines insurer.
(c) Notwithstanding any other provision of this subtitle, a surplus lines broker may not place surplus lines insurance with an insurer if the broker knows, or reasonably should know, that the insurer is in an unsafe or insolvent financial condition.
(d) A qualified surplus lines broker may not place a risk in an unauthorized insurer that has not previously appointed the Commissioner as agent for the acceptance of service of process.
Status: in_force · Read it on the official government site
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