§431:8-310 Surplus lines broker license required; application and qualifications for license. (a) No person shall procure any contract of surplus lines insurance with an unauthorized insurer unless the person is licensed as a surplus lines broker.

(b) A person applying for a surplus lines broker license shall apply to the commissioner on the uniform application and declare under penalty of denial, suspension, or revocation of the license that the statements made in the application are true, accurate, and complete to the best of the applicant's knowledge and belief. Before approving the application, the commissioner shall find that the applicant:

(1) Is at least eighteen years of age;

(2) Has not committed any act that is a ground for a licensure sanction set forth in section 431:8-317;

(3) Has paid the applicable fees set forth in section 431:7-101;

(4) Has passed, within the two years immediately preceding the date of the application or issuance of the license, whichever is later, the applicable examination; and

(5) Has submitted a full set of fingerprints, including a scanned file from a hard copy fingerprint, for the commissioner to obtain and receive national and state criminal history records checks from the Federal Bureau of Investigation and the Hawaii criminal justice data center, pursuant to section 846-2.7.

(c) The commissioner may require any documents reasonably necessary to verify the information contained in an application.

(d) The commissioner shall issue a surplus lines broker license to any producer licensed under article 9A, except producers licensed under section 431:9A-107(a)(1), (2), or (5), when the producer has:

(1) Remitted the annual license fee to the commissioner as provided in article 7; and

(2) Submitted a completed license application on a form furnished by the commissioner.

(e) A surplus lines broker license shall be inactivated if the licensee fails to pay any required fee or penalty. A surplus lines broker who allows the surplus lines broker's license to become inactive for nonpayment of the renewal fee may reinstate that license without the necessity of a written examination; provided that the surplus lines broker:

(1) Pays the fee and a penalty in the amount of fifty per cent of the then unpaid fees within twenty-four months from the inactivation date; and

(2) Is in compliance with all requirements of chapter 431.

The license shall automatically expire if the surplus lines broker does not reinstate the surplus lines broker's license within the twenty-four month period.

(f) Business entities shall be eligible to be surplus lines brokers, upon meeting the following conditions:

(1) The business entity licensee shall list individuals within the business entity who have satisfied all requirements of this part to become surplus lines brokers;

(2) Only those individuals listed on the business entity's license shall transact surplus lines business; and

(3) A natural person licensed as a surplus lines broker shall be identified as the business entity's designated representative.

(g) Licensing procedure, duration, and related matters shall be governed by article 7. [L 1987, c 347, pt of §2; am L 1993, c 205, §13; am L 2002, c 155, §17; am L 2004, c 122, §26; am L 2006, c 154, §9; am L 2009, c 77, §7; am L 2012, c 66, §4]