If the amount of insurance required to protect the interest of the assured cannot be procured from authorized insurers, such amount, hereinafter designated as "surplus line", may be procured from unauthorized insurers subject to the following conditions:

1. 1. The unauthorized insurer must have a certificate of approval from the Commissioner, and meet all relevant statutory requirements, including the following:

   1. a. the insurer is financially stable, and
   2. b. the insurer is controlled by persons possessing competence, experience and integrity, and
   3. c. the insurer, if a foreign insurer, posts a special deposit in an amount to be determined by the Commissioner, or

   4. d. the insurer, if an alien insurer, is listed on the National Association of Insurance Commissioners Non-Admitted Insurers Quarterly Listing.

      The Commissioner may withdraw a certificate of approval or refuse to renew a certificate upon finding that the insurer no longer meets the criteria for approval set out herein;

2. 2. The insurance must be procured through a licensed surplus line broker, hereinafter in this article referred to as the "broker"; and
3. 3. The amount of insurance required to protect the interest of the assured is not procurable, after diligent effort has been made to do so, from a majority of the insurers accessible to the broker which are authorized to transact that kind and class of insurance in this state, and the placing of insurance with an unauthorized insurer must not be for the purpose of securing advantages either as to premium rate or terms of the insurance contract.

Laws 1957, HB 501, p. 257, § 1106; Amended by Laws 1986, HB 1958, c. 134, § 3, emerg. eff. April 17, 1986; Amended by Laws 1991, SB 175, c. 146, § 1, eff. September 1, 1991; Amended by Laws 1993, HB 1605, c. 79, § 4, eff. September 1, 1993.