NOTE: This section is part of AS 21.27.010 through AS 21.27.900
 

AS 21.27.790. Surplus Lines Broker Qualifications.

In addition to the general qualifications under AS 21.27.020 , to qualify for issuance or for renewal of a surplus lines broker license, an applicant or licensee shall

(1) have a minimum two years active working experience within the previous five calendar years as an insurance producer, managing general agent, reinsurance intermediary broker, reinsurance intermediary manager, independent adjuster, or underwriter or claims adjuster employee of an insurer and, in the director's opinion, exhibit the ability to competently perform the responsibilities of the license applied for;

(2) if required by the director by regulation, maintain a bond as described in AS 21.27.190 in an amount acceptable to the director with the conditions that the surplus lines broker conduct business under the provisions of this title, promptly remit the taxes and fees provided by law, return premiums promptly when due, and pay proper losses promptly;

(3) if the director requires, maintain an errors and omissions insurance policy acceptable to the director.

AS 21.27.800. Trainee Surplus Lines Broker.

(a) An individual licensed in this state as an insurance producer who does not have the experience required of a surplus lines broker, but who otherwise meets the requirements of AS 21.27.790 , may be employed by a licensed surplus lines broker as a trainee surplus lines broker, subject to the provisions of this section.

(b) Before an individual may transact insurance as a trainee surplus lines broker, the licensed surplus lines broker employing the trainee surplus lines broker shall submit to the director the application of the trainee surplus lines broker, with the fee set under AS 21.06.250 , and receive the trainee surplus lines broker license.

(c) Upon satisfying the experience requirement, a trainee surplus lines broker shall apply within 30 days for a surplus lines broker license.

(d) A trainee licensed under this section shall at all times be working at the direction and under the supervision of the employing licensed surplus lines broker, and the file and record documentation shall reflect the direction and supervision. Insurance activities must be in the name of the employing licensed surplus lines broker, who is responsible for all actions of the trainee surplus lines broker.

(e) A trainee licensed under this section is restricted to assisting the employing licensed surplus lines broker in preparing applications; binders; certificates of insurance; schedules of equipment, vehicles, and drivers; loss notices to insurers; and invoices; and to perform clerical functions for which a license is not required. The file and record documentation must reflect compliance with this subsection.

(f) A trainee surplus line broker licensed under this section may not transact business away from the place of business with clients or insurers unless a licensed surplus lines broker physically accompanies the trainee.

(g) In addition to any other penalty provided by law,

(1) the director shall revoke the license of a trainee surplus lines broker who the director determines has violated the provisions of this section; a licensee or other person having possession or custody of the license shall immediately surrender the license to the director either personally or by certified mail;

(2) if the director determines under AS 21.06.170 - 21.06.240 that the employing surplus lines broker knew of or should have known that a trainee licensed under this section violated this section, the employing surplus lines broker and firm, and the compliance officer, if any, are subject to the penalties provided under AS 21.27.440 .

AS 21.27.810. Surplus Lines Broker Records.

In addition to any other records requirements under this chapter, a surplus lines broker shall maintain in organized form a complete record including

(1) the amount of insurance and perils insured;

(2) a complete description of property insured and the location of the property;

(3) gross premium charged;

(4) a return premium paid;

(5) the rate of premium charged upon the several items of property;

(6) the effective date of the contract and the terms of the contract;

(7) the name and address of the insured;

(8) the name and address of the insurer;

(9) the amount of tax and other sums to be collected from the insured;

(10) the allocation of taxes by state under AS 21.34.180 ;

(11) evidence of insurance issued in compliance with AS 21.34.100 ;

(12) the identity and license number of the producing broker;

(13) any confirming correspondence from the insurer or the representative of the insurer; and

(14) the application.

AS 21.27.820. Denial, Nonrenewal, Suspension, or Revocation of Surplus Lines Broker License.

In addition to other action available under this title, the director may deny issuance of or not renew a license, or may suspend or revoke a license of a surplus lines broker issued under this chapter for any of the following causes:

(1) removal of the resident surplus lines broker's office from this state;

(2) removal of the resident surplus lines broker's accounts and records from this state during the period within which the accounts and records are required to be maintained under this chapter;

(3) removal of the nonresident surplus lines broker's accounts and records required to be maintained under this chapter from the location described in the license without prior approval of the director;

(4) closing of the surplus lines broker's office for a period of more than 45 calendar days, unless permission is granted by the director;

(5) failure to make a required report;

(6) failure to transmit a required tax or fee on a surplus line premium to this state or a reciprocal state to which a tax is owing;

(7) failure to maintain a required bond.