Connecticut Administrative Code
Title 38a - Insurance Department
740 - Surplus Lines Insurers
Section 38a-740-6 - Requirements of eligible surplus lines insurers

Universal Citation: CT Reg of State Agencies 38a-740-6

Current through September 9, 2024

In order to remain an eligible surplus lines insurer in this state the unauthorized insurer shall comply with the following requirements.

(a) The insurer shall continue to maintain the same financial stability and condition, qualifications and general suitability necessary to be declared an eligible surplus lines insurer pursuant to section 38a-740-4 of the Regulations of Connecticut State Agencies.

(b)

(1) Each foreign insurer shall, annually, on or before the first day of March, submit to the commissioner, by electronically filing with the National Association of Insurance Commissioners, a true and complete report, signed and sworn to by its president or a vice president, and secretary or an assistant secretary, of its financial condition on the thirty-first day of December next preceding, in such form and with such detail as is prescribed by the commissioner. An electronically filed report that is timely submitted to the National Association of Insurance Commissioners is deemed to have been submitted to the commissioner in accordance with this subdivision.

(2) Each alien insurer shall file annually, on or before the fifteenth day of May, a true and complete report, signed and sworn to by its president or a vice president, and secretary or an assistant secretary, of its financial condition on the thirty-first day of December next preceding, in such form and with such detail as is prescribed by the commissioner.

(3) The commissioner may grant extensions of time in which to file such reports when an insurer can demonstrate to the satisfaction of the commissioner the need for such an extension. In addition to such annual report, the commissioner, when the commissioner deems it necessary, may require any eligible surplus lines insurer to file financial statements on a quarterly basis. Further, whenever the commissioner has determined that more frequent reports are required because of certain factors or trends affecting companies writing a particular class or classes of business or because of changes in the company's management or financial or operating condition, the commissioner may require any eligible surplus lines insurer to file financial statements on other than an annual or quarterly basis.

(4) Notwithstanding the provisions of this subsection to the contrary, when the syndicates of an insurance exchange are required to file annual reports with the exchange on the National Association of Insurance Commissioners Convention Form Annual Statement, an insurance exchange created under the laws of any state shall file such report on the first day of May, however, such report may be filed on a combined basis.

(c) The insurer shall file at least once in every five years an official report of an examination made by governmental authorities of the domiciliary jurisdiction of the insurer. The examination report shall be concerned with the condition and affairs of the company. In place of such an official report, the insurer may file such other evidence of verification of financial security as is acceptable to both its domiciliary jurisdiction and to the commissioner.

(d) The insurer shall file any other information requested by the commissioner concerning material changes in its financial condition, operations or management.

(e) The insurer shall remit to the commissioner the fees required by section 38a-740-11 of the Regulations of Connecticut State Agencies.

(f) If it appears to the commissioner, upon satisfactory evidence, that the surplus to policyholders of an eligible surplus lines insurer as appears on its financial statement is reduced forty percent below the minimum requirement for eligibility, such company shall not issue any new policies or transact any new business until it receives from the commissioner authority to do so or until authorized by court order in an action brought for that purpose.

(g) If the deficiency is more than twenty and less than forty percent of the required surplus and the directors of the insurer certify under oath that the deficiency will be restored by the insurer, such insurer may continue business for thirty days from the date such deficiency is found by the commissioner. If at the expiration of the thirty days, or any extension thereof granted by the commissioner in writing, any portion of the deficiency is not restored, the insurer shall not thereafter issue new policies or transact new business until authorized by the commissioner or authorized by court order in an action brought for that purpose.

Disclaimer: These regulations may not be the most recent version. Connecticut may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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