                                 CODE OF VIRGINIA

SURPLUS LINES COVERAGE TO BE PLACED WITH ELIGIBLE NONADMITTED INSURERS (§
38.2-4811)

A. No surplus lines broker shall procure a policy of insurance with any
nonadmitted insurer unless such nonadmitted insurer has prior approval of the
Commission to issue surplus lines insurance.

B. Any unlicensed foreign insurer wishing to be approved by the Commission to
issue surplus lines coverage may receive such approval upon providing:

   1. Evidence that it is authorized to write the type of insurance in its
   domiciliary jurisdiction; and

   2. Proof that it has capital and surplus or its equivalent under the laws of
   its domiciliary jurisdiction, which equal the greater of (i) the minimum
   capital and surplus requirements under &#xA7;&#xA7; 38.2-1028, 38.2-1029,
   38.2-1030 or &#xA7; 38.2-1031, or (ii) $15 million.

C. Notwithstanding the capital and surplus requirements of subdivision B 2, an
unlicensed foreign insurer may receive approval upon an affirmative finding of
acceptability by the Commission. The finding shall be based upon such factors as
quality of management, capital and surplus of any parent company, company
underwriting profit and investment income trends, market availability, and
company record and reputation within the industry. In no event shall the
Commission make an affirmative finding of acceptability when the surplus lines
insurer&#8217;s capital and surplus is less than $4.5 million.

D. An unlicensed alien insurer shall be deemed approved by the Commission if
such insurer is listed on the Quarterly Listing of Alien Insurers maintained by
the NAIC International Insurers Department.

E. Any unlicensed foreign insurer approved by the Commission shall cause to be
provided to the Commission, not later than March 1, a copy of its current annual
statement certified by the insurer, in accordance with &#xA7; 38.2-1300.
			The Commission, at its discretion, may extend the period for filing an annual
statement by a maximum of two months.

F. If at any time the Commission has reason to believe that an eligible
nonadmitted insurer (i) is in unsound financial condition, (ii) is no longer
eligible under this section, (iii) has willfully violated the laws of the
Commonwealth, or (iv) does not make reasonably prompt payment of just losses and
claims in the Commonwealth or elsewhere, the Commission may declare it
ineligible. The Commission shall promptly mail notice of all such declarations
to each surplus lines licensee.

HISTORY: Code 1950, § 38.1-314.11; 1960, c. 503; 1979, c. 513, § 38.1-327.56;
1984, c. 719; 1986, c. 562; 1994, c. 647; 1995, c. 60; 2007, c. 157; 2011, c.
498; 2018, c. 205.