Cal. Code Regs. tit. 10 § 2132

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 2132 - Preference to Admitted Insurers; Collection of Tax

All questions involving violation or alleged violation of the Surplus Line Brokers' Act, Chapter 6, Part 2, Division 1, Insurance Code, hereinafter referred to as the "Act," will be viewed by the commissioner upon the basis of whether or not as to each such question there has been any violation of the following basic principles:

(a) The Act is designed to grant a preference to insurers admitted to do business in this State, with the specific exceptions contained therein, and insurance coverage may not be solicited for, or contracts of insurance placed with, any nonadmitted insurer, unless and until such coverage is not procurable from a majority of the admitted insurers holding certificates of authority to transact the class or classes of insurance involved in such insurance contracts.

(b) The act is designed only to provide a medium through which citizens of this State may obtain from nonadmitted insurers coverage not readily procurable from admitted insurers.

(c) The act requires the collection of a tax upon premiums for insurance placed with nonadmitted insurers.

The above basic principles shall govern in all matters relating to the act. General and specific rules are hereinafter incorporated for the purpose of facilitating the application of the basic principles, and are not to be used for the purpose of avoiding or defeating these basic principles.

Cal. Code Regs. Tit. 10, § 2132