Current through Register Vol. XLI, No. 50, December 13, 2024
Section 115-2-3 - Designation of Producer of Record3.1. An entity may not procure or renew insurance through the public entities insurance program unless it does so through a producer who has entered into a fee agreement with the entity. Failure to comply with this requirement will result in declination of the entity's application for coverage or non-renewal of existing coverage.3.2. The board shall provide all forms, documents and instructions necessary to apply for coverage to the entity's producer of record upon request by the entity or the producer of record. The entity and its producer of record are jointly responsible for submitting all forms, documents, and underwriting information needed to apply for coverage in a manner and within a time period acceptable to the board.3.3. Before the end of December during each fiscal year, the board will provide notification to producers of record of the date by which the underwriting questionnaire and any other information needed for renewal of existing coverage is due for the next fiscal year. The notification will be sent at least 45 days prior to the date the underwriting questionnaire and other information is due. If the underwriting questionnaire or any other information needed for renewal of any coverage is not received by the designated date, the board will issue a written non-renewal notice informing the entity that coverage will cease on July 1 at 12:01 AM if the entity fails to take further action. 3.3.1 The non-renewal notice will also provide a date by which the underwriting questionnaire or other information will still be accepted by the board as a late submission, and will state that submission of the underwriting questionnaire or other information after the late submission date but before July 1 will result in an assessment of $500.00. The board may assess the penalty of $500.00 against any entity that submits the needed renewal information after the late submission date provided in the non-renewal notice and before July 1.3.3.2. As stated in the non-renewal notice, coverage will cease on July 1 at 12:01 AM for any entity that fails to submit the underwriting questionnaire or other information needed for renewal by June 30 and pay a $500.00 late submission penalty. Should the entity desire to procure coverage through the public entities insurance program during the year following non-renewal it will be required to apply for coverage as a new entity and pay a penalty of $500.00, however, this penalty shall not apply if the non-renewal was due to the entity's decision to procure coverage other than through the program.