15 U.S.C. § 8202 — Regulation of nonadmitted insurance by

Page 2406 TITLE 15—COMMERCE AND TRADE § 8202 Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 111–203, title V, § 512, July 21, 2010, 124 Stat. 1589, provided that: ‘‘Except as otherwise specifically provided in this subtitle [see Short Title note below], this subtitle shall take effect upon the expiration of the 12-month period beginning on the date of the enact- ment of this subtitle [July 21, 2010].’’ SHORT TITLE Pub. L. 111–203, title V, § 511, July 21, 2010, 124 Stat. 1589, provided that: ‘‘This subtitle [subtitle B (§§ 511–542) of title V of Pub. L. 111–203, enacting this chapter and provisions set out as a note under this sec- tion] may be cited as the ‘Nonadmitted and Reinsur- ance Reform Act of 2010’.’’ § 8202. Regulation of nonadmitted insurance by insured’s home State (a) Home State authority Except as otherwise provided in this section, the placement of nonadmitted insurance shall be subject to the statutory and regulatory require- ments solely of the insured’s home State. (b) Broker licensing No State other than an insured’s home State may require a surplus lines broker to be licensed in order to sell, solicit, or negotiate non- admitted insurance with respect to such in- sured. (c) Enforcement provision With respect to section 8201 of this title and subsections (a) and (b) of this section, any law, regulation, provision, or action of any State that applies or purports to apply to nonadmitted insurance sold to, solicited by, or negotiated with an insured whose home State is another State shall be preempted with respect to such application. (d) Workers’ compensation exception This section may not be construed to preempt any State law, rule, or regulation that restricts the placement of workers’ compensation insur- ance or excess insurance for self-funded workers’ compensation plans with a nonadmitted insurer. (Pub. L. 111–203, title V, § 522, July 21, 2010, 124 Stat. 1590.) § 8203. Participation in national producer data- base After the expiration of the 2-year period begin- ning on July 21, 2010, a State may not collect any fees relating to licensing of an individual or entity as a surplus lines broker in the State un- less the State has in effect at such time laws or regulations that provide for participation by the State in the national insurance producer data- base of the NAIC, or any other equivalent uni- form national database, for the licensure of sur- plus lines brokers and the renewal of such li- censes. (Pub. L. 111–203, title V, § 523, July 21, 2010, 124 Stat. 1590.) § 8204. Uniform standards for surplus lines eligi- bility A State may not— (1) impose eligibility requirements on, or otherwise establish eligibility criteria for, nonadmitted insurers domiciled in a United States jurisdiction, except in conformance with such requirements and criteria in sec- tions 5A(2) and 5C(2)(a) of the Non-Admitted Insurance Model Act, unless the State has adopted nationwide uniform requirements, forms, and procedures developed in accordance with section 8201(b) of this title that include alternative nationwide uniform eligibility re- quirements; or (2) prohibit a surplus lines broker from plac- ing nonadmitted insurance with, or procuring nonadmitted insurance from, a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers maintained by the International In- surers Department of the NAIC. (Pub. L. 111–203, title V, § 524, July 21, 2010, 124 Stat. 1590.) § 8205. Streamlined application for commercial purchasers A surplus lines broker seeking to procure or place nonadmitted insurance in a State for an exempt commercial purchaser shall not be re- quired to satisfy any State requirement to make a due diligence search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from admitted insurers if— (1) the broker procuring or placing the sur- plus lines insurance has disclosed to the ex- empt commercial purchaser that such insur- ance may or may not be available from the ad- mitted market that may provide greater pro- tection with more regulatory oversight; and (2) the exempt commercial purchaser has subsequently requested in writing the broker to procure or place such insurance from a non- admitted insurer. (Pub. L. 111–203, title V, § 525, July 21, 2010, 124 Stat. 1591.) § 8206. Definitions For purposes of this subchapter, the following definitions shall apply: (1) Admitted insurer The term ‘‘admitted insurer’’ means, with respect to a State, an insurer licensed to en- gage in the business of insurance in such State. (2) Affiliate The term ‘‘affiliate’’ means, with respect to an insured, any entity that controls, is con- trolled by, or is under common control with the insured. (3) Affiliated group The term ‘‘affiliated group’’ means any group of entities that are all affiliated. (4) Control An entity has ‘‘control’’ over another entity if— (A) the entity directly or indirectly or act- ing through 1 or more other persons owns, controls, or has the power to vote 25 percent