                                 CODE OF VIRGINIA

APPLICATIONS FOR SURPLUS LINES BROKER LICENSE; FEE REQUIRED; FINGERPRINTING (§
38.2-1857.2)

A. Every original applicant for a surplus lines broker license shall apply for
such license in a form and manner prescribed by the Commission, and containing
any information the Commission requires. Each applicant shall, at the time of
applying for a license, pay a nonrefundable application processing fee in an
amount and in a manner prescribed by the Commission. The prescribed application
fee shall be collected by the Commission and paid directly into the state
treasury and credited to the fund for the maintenance of the Bureau of Insurance
as provided in subsection B of &#xA7; 38.2-400.

B. Each applicant for a surplus lines broker license shall, at the time of
applying for a new license, be fingerprinted in a form and manner prescribed by
the Commission and shall provide personal descriptive information to be
forwarded along with the applicant&#8217;s fingerprints through the Central
Criminal Records Exchange to the Federal Bureau of Investigation for the purpose
of obtaining criminal history record information regarding such applicant. The
results of the state and national records search shall be forwarded to the
Commissioner or the Commissioner&#8217;s designee, who shall be an employee of
the Commission. The cost of fingerprinting and the criminal history record check
shall be paid by the applicant. If an applicant&#8217;s application for a
license is denied, the Commission shall provide a copy of the information
obtained from the Central Criminal Records Exchange to the applicant upon
request. The information provided to the Commission shall not be disseminated
except as provided in this subsection.

C. Prior to issuance of a license, the applicant shall file with the Commission
a certification or attestation that the applicant has, and thereafter shall keep
in force for as long as the license remains in effect, a bond in favor of the
Commonwealth in the amount of $25,000 with corporate sureties licensed by the
Commission. The bond shall be conditioned that the broker will conduct business
under the license in accordance with the provisions of the surplus lines
insurance law and that he will promptly remit the taxes provided by such law.
The bond shall not be terminated unless at least 30 calendar days&#8217; prior
written notice of the termination is filed with the Commission. If, prior to the
expiration date of the bond, the licensed surplus lines broker fails to file
with the Commission a certification or attestation that a new bond satisfying
the requirements of this section has been put into effect, the surplus lines
broker license shall terminate and the licensee shall be required to apply for a
new surplus lines broker license.

D. Notwithstanding any other provisions of this title, a person licensed as a
surplus lines broker in his home state, as defined in &#xA7; 38.2-1800, shall
receive a nonresident surplus lines broker license subject to meeting the
requirements set forth in &#xA7; 38.2-1857.9.

E. Except where prohibited by state or federal law, by submitting an application
for license, the applicant shall be deemed to have appointed the clerk of the
Commission as the agent for service of process on the applicant in any action or
proceeding arising in the Commonwealth out of or in connection with the exercise
of the license. Such appointment of the clerk of the Commission as agent for
service of process shall be irrevocable during the period within which a cause
of action against the applicant may arise out of transactions with respect to
subjects of insurance in the Commonwealth. Service of process on the clerk of
the Commission shall conform to the provisions of Chapter 8 (&#xA7; 38.2-800 et
seq.).

F. A business entity acting as a surplus lines broker is required to obtain a
surplus lines broker license. In addition to the other requirements in this
section, and before approving the application, the Commission shall find that:

   1. The business entity has paid the fee set forth in subsection A; and

   2. If:
   				a. A resident of the Commonwealth, the business entity has designated an
   employee, officer, director, manager, member, or partner to serve as the
   licensed Virginia Property and Casualty insurance agent to be responsible for
   the business entity&#8217;s compliance with the insurance laws, rules and
   regulations of the Commonwealth; or
   				b. Not a resident of the Commonwealth, the business entity has designated
   an employee, officer, director, manager, member, or partner licensed in his
   home state to be responsible for the business entity&#8217;s compliance with
   the insurance laws, rules and regulations of the Commonwealth.

G. The Commission may require any documents reasonably necessary to verify the
information contained in an application.

HISTORY: 2001, c. 706; 2008, c. 213; 2011, c. 498; 2016, c. 552; 2018, c. 131;
2019, c. 675.