A producer that places insurance with a qualified surplus lines carrier may be either a resident or a nonresident of this state and must be licensed to sell insurance classified as excess and surplus lines insurance.
Iowa Code §515.120 through §515.122 sets out a producer’s obligations when placing business with a surplus lines company. Qualified surplus lines companies are not to be used to compete price wise against admitted companies. If an account is in or can be placed in an admitted company, it must be placed with the admitted company.
See the following administrative rules and statutes regarding surplus lines and purchasing groups.
§191-21 Requirements for Excess & Surplus Lines, Risk Retention Groups & Purchasing Groups
§515.120 Business with nonadmitted insurers
§515.121 Administrative Penalty
§515.122 Banned companies - - Information required
§515E Risk Retention Groups and Purchasing Groups