California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 1 - Production of Insurance
Article 4 - Surplus Lines
Rules Covering Specific Policy Forms Heretofore Submitted to the Commissioner
Section 2155
Universal Citation: 10 CA Code of Regs 2155
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
The question has been submitted as to the propriety of dividing liability lines into:
(a)
(1) Primary coverage and
(2) Excess coverage for submission purposes, and
the Commissioner has been asked to rule whether such division would be considered a
violation of the artificial division rule.
(b) Unless the excess coverage upon any risk is written in nonadmitted insurers at a rate or premium comparable with that regularly chargeable for the excess portion by the primary carrier on such risk, the division of such risk into primary and excess will be considered a violation of the artificial division rule, subject to the following exceptions:
(1) Excess insurance written by nonadmitted
insurers in excess of a net retention of risk by the assured.
(2) Excess insurance written by nonadmitted
insurers because of a refusal in writing by the primary admitted insurer to assume
the limits of liability desired by the assured.
(3) Excess insurance written by nonadmitted
insurers because of a written demand by the assured that the entire liability be not
placed with one insurer, such request to set forth specifically the assured's reason
therefor.*
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