The question has been submitted as to the propriety of dividing liability lines into:
(a)(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.*Cal. Code Regs. Tit. 10, § 2155