(a) A domestic insurance company that has policyholder surplus of at least fifteen million dollars may, pursuant to a resolution adopted by its board of directors and with the approval of the Insurance Commissioner, be designated as a domestic surplus lines insurer. Unless otherwise provided by law, all financial and solvency requirements imposed under chapter 698 on a domestic insurer authorized to do insurance business in this state shall apply to a domestic surplus lines insurer.
(b) A domestic surplus lines insurer (1) shall be considered an unauthorized insurer that is eligible to write surplus lines insurance coverage in this state, (2) shall, with respect to surplus lines insurance written in this state, be considered a nonadmitted insurer under 15 USC 8206, as amended from time to time, (3) shall only write surplus lines insurance in this state in accordance with the provisions of chapter 701d from a surplus lines broker licensed under section 38a-794, and (4) a domestic surplus lines insurer may write surplus lines insurance in any other jurisdiction in which the insurer is eligible to write surplus lines insurance in accordance with the requirements of that jurisdiction.
(c) Surplus lines insurance written by a domestic surplus lines insurer shall be (1) subject to the tax imposed under section 38a-743, and (2) exempt from the tax imposed under section 12-202.
(d) Surplus lines insurance policies issued by a domestic surplus lines insurer in this state shall not be subject to (1) the protection of the Connecticut Insurance Guaranty Association or the provisions of sections 38a-836 to 38a-853, inclusive, and (2) any requirements relating to rates, rating plans, policy forms, policy cancellation and policy nonrenewal, in the same manner and to the same extent as surplus lines insurance policies issued by a surplus lines insurer domiciled in another state.
(P.A. 17-125, S. 1.)
History: P.A. 17-125 effective July 1, 2017.