W. Va. Code R. § 114-20-8

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-20-8 - Conditions For Marketing Insurance With Surplus Lines Insurers

8.1. Producers may not solicit business on behalf of a surplus lines insurer. However:

8.1.a. Producers may advertise the availability of insurance products for the insurance coverages and classes included on the export list to potential insureds and other producers.

8.1.b. Surplus lines licensees may advertise their services and product lines to other producers.

8.1.c. Such advertisements shall identify the fact that the insurance will be placed with a surplus lines insurer. The advertisements may not identify the insurer by name nor act as a solicitation on behalf of any surplus lines insurer. The advertisements may not identify specific rates or specific policy provisions.

8.2. Once negotiations over the available terms and conditions for specific coverages begin, at least the following facts must be disclosed in writing to the potential insured:

8.2.a. That the insurance will be placed through a surplus lines insurer and the name of the insurer;

8.2.b. That the producer is not an agent of the potential insurer because surplus lines insurers are not permitted to appoint individual insurance producers;

8.2.c. That the surplus lines market is a specialty market that has limited regulatory oversight by the commissioner, and specifically, there is no regulation of policy coverage forms or rates; and

8.2.d. That no protection is afforded under any West Virginia guaranty fund mechanism.

8.3. Subject to the general provisions of W. Va. Code §§ 33-12C-1et seq., a surplus lines licensee may originate surplus lines insurance or accept applications for surplus lines insurance from any other producer duly licensed as to the kinds of insurance involved. The surplus lines licensee may compensate the producer.

W. Va. Code R. § 114-20-8