A. Every original applicant for a surplus lines broker’s license shall apply for such license in a form and manner prescribed by the Commission, and containing any information the Commission requires.
B. Prior to issuance of a license, the applicant shall file with the Commission a certification or attestation that the applicant has, and thereafter shall keep in force for as long as the license remains in effect, a bond in favor of this Commonwealth in the amount of $ 25,000 with corporate sureties licensed by the Commission. The bond shall be conditioned that the broker will conduct business under the license in accordance with the provisions of the surplus lines insurance law and that he will promptly remit the taxes provided by such law. The bond shall not be terminated unless at least 30 calendar days’ prior written notice of the termination is filed with the Commission. If, prior to the expiration date of the bond, the licensed surplus lines broker fails to file with the Commission a certification or attestation that a new bond satisfying the requirements of this section has been put into effect, the surplus lines broker license shall terminate and the licensee shall be required to apply for a new surplus lines broker license.
C. Notwithstanding any other provisions of this title, a person licensed as a surplus lines broker in his home state, as defined in § 38.2-1800, shall receive a nonresident surplus lines broker license subject to meeting the requirements set forth in § 38.2-1857.9.
D. Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed to have appointed the clerk of the Commission as the agent for service of process on the applicant in any action or proceeding arising in the Commonwealth out of or in connection with the exercise of the license. Such appointment of the clerk of the Commission as agent for service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out of transactions with respect to subjects of insurance in the Commonwealth. Service of process on the clerk of the Commission shall conform to the provisions of Chapter 8 (§ 38.2-800 et seq.) of this title.
E. A business entity acting as a surplus lines broker is required to obtain a surplus lines broker license. In addition to the other requirements in this section, and before approving the application, the Commission shall find that:
1. The business entity has paid the fee set forth in § 38.2-1857.3; and
a. A resident of the Commonwealth, the business entity has designated an employee, officer, or director to serve as the licensed Virginia Property and Casualty insurance agent to be responsible for the business entity’s compliance with the insurance laws, rules and regulations of the Commonwealth; or
b. Not a resident of the Commonwealth, the business entity has designated an employee, officer, or director licensed in his home state to be responsible for the business entity’s compliance with the insurance laws, rules and regulations of the Commonwealth.
2001, c. 706; 2008, c. 213; 2011, c. 498; 2016, c. 552.