Source: https://www.gpo.gov/fdsys/pkg/USCODE-2010-title15/html/USCODE-2010-title15-chap108.htm
Timestamp: 2016-10-25 03:09:35
Document Index: 465322646

Matched Legal Cases: ['§8201', '§521', '§511', '§511', '§512', '§8202', '§522', '§8203', '§523', '§8204', '§524', '§8205', '§525', '§8221', '§531', '§8222', '§532', '§8223', '§533', '§8231', '§541', '§511', '§8232', '§542']

CHAPTER 108—STATE-BASED INSURANCE REFORM
SUBCHAPTER I—NONADMITTED INSURANCE
8201.Reporting, payment, and allocation of premium taxes.
8202.Regulation of nonadmitted insurance by insured's home State.
8203.Participation in national producer database.
8204.Uniform standards for surplus lines eligibility.
8205.Streamlined application for commercial purchasers.
8206.Definitions.
SUBCHAPTER II—REINSURANCE
8221.Regulation of credit for reinsurance and reinsurance agreements.
8222.Regulation of reinsurer solvency.
8223.Definitions.
SUBCHAPTER III—RULE OF CONSTRUCTION
8231.Rule of construction.
8232.Severability.
§8201. Reporting, payment, and allocation of premium taxes
(a) Home State's exclusive authority
No State other than the home State of an insured may require any premium tax payment for nonadmitted insurance.
(b) Allocation of nonadmitted premium taxes
The States may enter into a compact or otherwise establish procedures to allocate among the States the premium taxes paid to an insured's home State described in subsection (a).
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.
Upon the expiration of the 330-day period referred to in paragraph (2), the NAIC may submit a report to the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate identifying and describing any compact or other procedures for allocation among the States of premium taxes that have been adopted during such period by any States.
(4) Nationwide system
The Congress intends that each State adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact, that provide for the reporting, payment, collection, and allocation of premium taxes for nonadmitted insurance consistent with this section.
(c) Allocation based on tax allocation report
To facilitate the payment of premium taxes among the States, an insured's home State may require surplus lines brokers and insureds who have independently procured insurance to annually file tax allocation reports with the insured's home State detailing the portion of the nonadmitted insurance policy premium or premiums attributable to properties, risks, or exposures located in each State. The filing of a nonadmitted insurance tax allocation report and the payment of tax may be made by a person authorized by the insured to act as its agent.
(Pub. L. 111–203, title V, §521, July 21, 2010, 124 Stat. 1589.)
Pub. L. 111–203, title V, §511, July 21, 2010, 124 Stat. 1589, provided that: “This subtitle [subtitle B (§§511–542) of title V of Pub. L. 111–203, enacting this chapter and provisions set out as a note under this section] may be cited as the ‘Nonadmitted and Reinsurance Reform Act of 2010’.”
Pub. L. 111–203, title V, §512, July 21, 2010, 124 Stat. 1589, provided that: “Except as otherwise specifically provided in this subtitle [see Short Title note above], this subtitle shall take effect upon the expiration of the 12-month period beginning on the date of the enactment of this subtitle [July 21, 2010].”
§8202. Regulation of nonadmitted insurance by insured's home State
(a) Home State authority
Except as otherwise provided in this section, the placement of nonadmitted insurance shall be subject to the statutory and regulatory requirements solely of the insured's home State.
(b) Broker licensing
No State other than an insured's home State may require a surplus lines broker to be licensed in order to sell, solicit, or negotiate nonadmitted insurance with respect to such insured.
(c) Enforcement provision
With respect to section 8201 of this title and subsections (a) and (b) of this section, any law, regulation, provision, or action of any State that applies or purports to apply to nonadmitted insurance sold to, solicited by, or negotiated with an insured whose home State is another State shall be preempted with respect to such application.
(d) Workers’ compensation exception
This section may not be construed to preempt any State law, rule, or regulation that restricts the placement of workers’ compensation insurance or excess insurance for self-funded workers’ compensation plans with a nonadmitted insurer.
(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.)
§8221. Regulation of credit for reinsurance and reinsurance agreements
(a) Credit for reinsurance
If the State of domicile of a ceding insurer is an NAIC-accredited State, or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, and recognizes credit for reinsurance for the insurer's ceded risk, then no other State may deny such credit for reinsurance.
(b) Additional preemption of extraterritorial application of State law
In addition to the application of subsection (a), all laws, regulations, provisions, or other actions of a State that is not the domiciliary State of the ceding insurer, except those with respect to taxes and assessments on insurance companies or insurance income, are preempted to the extent that they—
(1) restrict or eliminate the rights of the ceding insurer or the assuming insurer to resolve disputes pursuant to contractual arbitration to the extent such contractual provision is not inconsistent with the provisions of title 9;
(2) require that a certain State's law shall govern the reinsurance contract, disputes arising from the reinsurance contract, or requirements of the reinsurance contract;
(3) attempt to enforce a reinsurance contract on terms different than those set forth in the reinsurance contract, to the extent that the terms are not inconsistent with this subchapter; or
(4) otherwise apply the laws of the State to reinsurance agreements of ceding insurers not domiciled in that State.
(Pub. L. 111–203, title V, §531, July 21, 2010, 124 Stat. 1595.)
§8222. Regulation of reinsurer solvency
(a) Domiciliary State regulation
If the State of domicile of a reinsurer is an NAIC-accredited State or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, such State shall be solely responsible for regulating the financial solvency of the reinsurer.
(b) Nondomiciliary States
(1) Limitation on financial information requirements
If the State of domicile of a reinsurer is an NAIC-accredited State or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, no other State may require the reinsurer to provide any additional financial information other than the information the reinsurer is required to file with its domiciliary State.
(2) Receipt of information
No provision of this section shall be construed as preventing or prohibiting a State that is not the State of domicile of a reinsurer from receiving a copy of any financial statement filed with its domiciliary State.
(Pub. L. 111–203, title V, §532, July 21, 2010, 124 Stat. 1595.)
§8223. Definitions
(1) Ceding insurer
(2) Domiciliary State
(3) NAIC
(4) Reinsurance
(5) Reinsurer
(i) is principally engaged in the business of reinsurance;
(ii) does not conduct significant amounts of direct insurance as a percentage of its net premiums; and
(iii) is not engaged in an ongoing basis in the business of soliciting direct insurance.
(Pub. L. 111–203, title V, §533, July 21, 2010, 124 Stat. 1595.)
§8231. Rule of construction
Nothing in this chapter or the amendments made by this subtitle 1 shall be construed to modify, impair, or supersede the application of the antitrust laws. Any implied or actual conflict between this chapter and any amendments to this chapter and the antitrust laws shall be resolved in favor of the operation of the antitrust laws.
(Pub. L. 111–203, title V, §541, July 21, 2010, 124 Stat. 1596.)
This subtitle, referred to in text, is subtitle B (§§511–542) of title V of Pub. L. 111–203, which enacted this chapter and provisions set out as notes under section 8201 of this title. Subtitle B did not make any amendments.
§8232. Severability
If any section or subsection of this chapter, or any application of such provision to any person or circumstance, is held to be unconstitutional, the remainder of this chapter, and the application of the provision to any other person or circumstance, shall not be affected.
(Pub. L. 111–203, title V, §542, July 21, 2010, 124 Stat. 1596.)