83-34-4 - Nonadmitted policy fee; responsibility of agent placing insurance through nonadmitted insurer to collect and remit fees; calculation of fee; penalty for nonpayment.
§ 83-34-4. Nonadmitted policy fee; responsibility of agent placing insurance through nonadmitted insurer to collect and remit fees; calculation of fee; penalty for nonpayment.
(1) Nonadmitted insurers shall not be assessable insurers of the association. All agents placing insurance through nonadmitted insurers shall collect from the insured and remit to the association a nonadmitted policy fee on all premiums collected after January 1, 2008, for all insurance written by such agent for a policy from a nonadmitted insurer for any and all risks on real property and contents in this state. By procuring or selling insurance on property in this state from a nonadmitted insurer, each agent placing insurance through a nonadmitted insurer agrees to be bound by the provisions of this chapter and to collect and remit the nonadmitted policy fee provided for herein.
(2) The nonadmitted policy fee shall be a percentage of the total policy premium but the nonadmitted policy fee shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the nonadmitted policy fee shall be treated the same as failure to pay premium. "Total policy premium" includes taxes and commissions.
(3) The nonadmitted policy fee percentage shall be set by the commissioner. Such percentage may be changed from time to time in the discretion of the commissioner, but in no event shall the nonadmitted policy fee percentage be less than five percent (5%).
(4) Within twenty (20) days of the end of the quarter, agents placing insurance through nonadmitted insurers shall remit directly to the association all nonadmitted policy fees collected in the preceding quarter. In addition to the nonadmitted policy fee provided for herein, agents placing insurance through nonadmitted insurers shall collect and remit surcharges as provided by this chapter. Agents placing insurance through nonadmitted insurers may designate another agent that actually procured the insurance from the nonadmitted carrier to collect and remit the nonadmitted policy fees subject to the procedures and requirements provided for premium taxes in Section 83-21-25.
Sources: Laws, 2007, ch. 425, § 7, eff from and after passage (approved Mar. 22, 2007.)