California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 1 - Production of Insurance
Article 4 - Surplus Lines
Submission Rules
Section 2137 - Refusal by Admitted Insurers to Write Lawful Coverage by Mutual Agreement

The refusal of a majority of admitted insurers to write a lawful form of coverage offered them, solely upon the basis of mutual agreement so not to write, where such form of coverage can be demonstrated to be proper and necessary to the protection of the citizen (and not prohibited by law), will permit the surplus line broker to write such coverage in non-admitted insurers upon such refusal. A test of good faith of the surplus line broker in each such transaction will be a comparison of the rate or premium involved. Compliance with filing requirements of Section 1763 of the Insurance Code will be enforced.