                                 CODE OF VIRGINIA

RENEWAL APPLICATION AND FEE; REINSTATEMENT; WAIVER (§ 38.2-1857.4:1)

A. Beginning January 1, 2021, each individual surplus lines broker shall submit
biennially to the Commission a renewal application in a form and manner
prescribed by the Commission, along with a nonrefundable renewal application
processing fee prescribed by the Commission, for the renewal of the license.
Licenses shall be renewed biennially based on the broker&#8217;s month and year
of birth. The license for a surplus lines broker born in an even-numbered year
shall expire at the end of the broker&#8217;s birth month in even-numbered
years. The license for a surplus lines broker born in an odd-numbered year shall
expire at the end of the broker&#8217;s birth month in odd-numbered years. Any
surplus lines broker license for which the renewal application and nonrefundable
renewal application processing fee have been received by the Commission and all
other applicable licensing and renewal provisions in this chapter have been met
shall, unless the license has been terminated, suspended, or revoked, be renewed
for a two-year period. Any surplus lines broker license for which the renewal
application and nonrefundable renewal application processing fee have not been
received by the Commission shall automatically be terminated.

B. On or before May 1, 2021, and biennially thereafter, each business entity
licensed as a surplus lines broker shall submit to the Commission a renewal
application, along with a nonrefundable renewal application processing fee
prescribed by the Commission, for the renewal of the license. Any surplus lines
broker license for which the required renewal application and nonrefundable
renewal application processing fee have been received by the Commission and all
other applicable licensing and renewal provisions in this chapter have been met
shall, unless the license has been terminated, suspended, or revoked, be renewed
for a two-year period. Any surplus lines broker license for which the required
renewal application and nonrefundable renewal application processing fee have
not been received by the Commission shall automatically be terminated.

C. The nonrefundable renewal application processing fee shall be paid in a
manner and in an amount prescribed by the Commission. The nonrefundable renewal
processing 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.

D. An individual surplus lines broker whose license terminates due to failure to
renew may, within 12 months from the renewal date, reinstate the same license by
submitting the renewal application and a nonrefundable reinstatement processing
fee equivalent to double the nonrefundable renewal application processing fee
and by complying with all other applicable licensing and renewal provisions in
this chapter.

E. A licensed surplus lines broker&#8217;s failure to file the maintenance
assessment report required by &#xA7; 38.2-406 or pay the maintenance assessment
and any related fines, penalties, and interest required by &#xA7; 38.2-403 on or
before the first day of March of each year shall result in the termination of
the surplus lines broker license.

F. An individual surplus lines broker who is unable to comply with the license
renewal requirements due to military service or another extenuating circumstance
such as a long-term illness or incapacity may request a waiver of those
requirements. Requests for waivers of renewal requirements shall be made in a
form and manner prescribed by the Commission. Surplus lines brokers seeking a
waiver of renewal requirements shall submit all documentation specified by the
Commission so as to be received by the Commission no later than the last day of
the renewal period. After the renewal period, surplus lines brokers who have
failed to complete the renewal waiver requirements may request a waiver from the
reinstatement requirements set forth in subsection D within the 12-month
reinstatement period. The Commission shall approve or disapprove the waiver
request within 30 calendar days of receipt thereof, and shall provide written
notice of its decision to the applicant for waiver within five calendar days of
rendering its decision. Any waiver granted pursuant to this section shall be
valid only for the renewal period or reinstatement period for which the waiver
request was made.

HISTORY: 2019, c. 675.