If insurance required to protect the interest of the assured cannot be procured from authorized insurers after direct inquiry to such insurers, such insurance, 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 broker shall file the appropriate affidavit as required by Section 1107 of this title.

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; Amended by Laws 2006, HB 2375, c. 94, § 1, eff. November 1, 2006 (superseded document available).