House Bill 220, recently signed into law by the Governor of North Carolina makes significant changes to North Carolina’s surplus lines requirements.
HB 220 removes the North Carolina Surplus Line Association’s obligation to submit an annually updated list of surplus lines licensees. The Bill also requires that the record of each contract which a surplus lines licensee places and maintains in its office, include a copy of the compliance agreement. Furthermore, HB 220 provides for a complete repeal of N.C. Gen. Stat. § 58-21-80, removing a surplus lines licensee’s quarterly reporting requirement. Reporting is no longer required to be on standardized forms prescribed by the Commissioner.
Additionally, HB 220 modifies the Department of Insurance’s ability to suspend, revoke, or refuse to renew a license. Under the amended N.C. Gen. Stat. § 58-21-95, the Department may no longer impose such penalties on a licensee for removing their office from North Carolina. The Bill further clarifies the Department’s powers to suspend or revoke a license by removing “Failure to maintain the required bond” from the list of punishable offenses and replacing that with “Failure to pay the stamping fee to the stamping office”. A bond is no longer required in North Carolina.
For any questions regarding House Bill 220, or for surplus lines regulatory inquiries, please contact Westmont Associates, Inc.