23-65-308. Licensing of surplus lines broker.

23-65-308. Licensing of surplus lines broker. (a) If an insured's home state is this state, a person shall not procure a contract of surplus lines insurance with a nonadmitted insurer unless the insurer possesses a current surplus lines broker's license issued by the Insurance Commissioner. (b) A person, while licensed as a resident insurance producer of this state as to property, casualty, surety, and marine insurance, who has held the license in this or another state, or both, for three (3) years before application for a surplus lines broker's license, and who is deemed by the commissioner to be competent and trustworthy, or a nonresident applicant holding a surplus lines broker license in his or her country of residency, may be licensed as a surplus lines broker as follows: (1) Application to the commissioner for the license shall be made on forms furnished by the commissioner; (2) The license fee shall be: (A) In the amount stated in § 23-61-401(10) for each license year during any part of which the license is in force; and (B) Paid to the commissioner; (3) The license year shall be from the date of issuance of the license to January 1 next after its issue; (4)(A) Before issuance of the license, a resident applicant shall file with the commissioner securities acceptable to the commissioner in favor of the State of Arkansas in the penal sum of fifty thousand dollars ($50,000), aggregate liability, with unaffiliated entities approved by the commissioner. Thereafter for as long as the license remains in effect, the resident applicant shall keep the securities in force and unimpaired. (B) The securities shall be conditioned that the broker shall conduct business under the license according to the provisions of this subchapter and that he or she will promptly remit the taxes provided by the law. (C) Securities shall not be terminated unless at least sixty (60) days' prior written notice is filed with the commissioner. (D) Securities shall not be required of a nonresident applicant licensed in the applicant's state of residency; (5)(A)(i) Before issuance of the license, the commissioner shall require the applicant to pass a written examination as to his or her competence to act as a surplus lines broker. (ii) An examination shall not be required of a nonresident applicant duly licensed in the applicant's state of residency. (B) The commissioner shall give, conduct, and grade all examinations, or he or she may arrange to have examinations administered and graded by an independent testing service as specified by contract in a fair and impartial manner and without unfair discrimination between individuals examined. (C) The commissioner may require a reasonable waiting period before reexamination of an applicant who failed to pass a previous similar examination. (D) The examination fee shall be the same as that charged an applicant for license as an agent, broker, or solicitor under § 23-61-401. (c) The commissioner may utilize the national insurance producer database of the National Association of Insurance Commissioners or any other equivalent uniform national database for the licensure and renewal of an individual or entity as a surplus lines broker for the purposes of carrying out the Nonadmitted and Reinsurance Reform Act of 2010, Pub. L. No. 111-203.