Virginia 2018 Regular Session Status: Enacted

SB 542 — Surplus lines insurance; establishes criteria for SCC licensing of domestic surplus line insurers.

Last action — Approved by Governor-Chapter 205 (effective 7/1/18)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House of Delegates
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 09, 2018. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Establishes criteria for the licensing by the State Corporation Commission of domestic surplus line insurers. A domestic surplus lines insurer is considered a nonadmitted insurer for the purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010 with respect to risks insured in the Commonwealth. The measure provides that policies issued by a domestic surplus lines insurer are subject to the same taxes and maintenance assessments levied upon surplus lines policies issued by eligible nonadmitted insurers, if the Commonwealth is the home state of the insured. Policies issued by a domestic surplus lines insurer are not subject to protections provided by the Virginia Property and Casualty Insurance Guaranty Association. The measure exempts policies issued by a domestic surplus lines insurer from all statutory requirements relating to insurance rating plans, policy forms, policy cancellation and nonrenewal, and premium charged to the insured in the same manner and to the same extent as a nonadmitted insurer domiciled in another state. The measure provides that a domestic surplus lines insurer is only authorized to write the types of insurance in the Commonwealth that a surplus lines broker may procure with a nonadmitted insurer approved by the Commission.

Bill Text

What changed in the latest version

44 added · 51 removed

Plain-language change summary

The amendments to Bill SB 542 clarify the requirements for surplus lines brokers when placing insurance coverage. Notably, the updates specify that brokers must provide clear notice to the insured about the insurance provider, including the broker's details, before the coverage is placed. This change aims to enhance transparency and ensure that consumers are informed about the insurance they are receiving, which is important for their financial protection and understanding of the policy terms.

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SESSION history | hilite | pdf | print version 18102095D SENATE BILL NO.
SESSION history | hilite | pdf | print version VIRGINIA ACTS OF ASSEMBLY -- CHAPTER An Act to amend and reenact §§ 38.2-1857.1, 38.2-4805.2, 38.2-4806, 38.2-4808, 38.2-4809, 38.2-4810, 38.2-4811, and 38.2-4812 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-4811.1, relating to surplus lines insurance;
542 Senate Amendments in [ ] -- January 25, 2018 A BILL to amend and reenact §§ 38.2-1857.1, 38.2-4805.2, 38.2-4806, 38.2-4808, 38.2-4809, 38.2-4810, 38.2-4811, and 38.2-4812 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-4811.1, relating to surplus lines insurance;
---------- Patron Prior to Engrossment--Senator Obenshain ---------- Referred to Committee on Commerce and Labor ---------- Be it enacted by the General Assembly of Virginia:
[S 542] Approved   Be it enacted by the General Assembly of Virginia:
The notice shall contain, but not be limited to, statements that the policy is being procured from or has been placed with an insurer approved by the Commission for issuance of surplus lines insurance in this Commonwealth, but not licensed or regulated by the Commission as an eligible nonadmitted insurer and that there is no protection under the Virginia Property and Casualty Insurance Guaranty Association, established under Chapter 16 (§ 38.2-1600 et seq.) of this title, against financial loss to claimants or policyholders because of the insolvency of an unlicensed  [ a  an eligible  ] nonadmitted insurer.
The notice shall contain, but not be limited to, statements that the policy is being procured from or has been placed with an insurer approved by the Commission for issuance of surplus lines insurance in this Commonwealth, but not licensed or regulated by the Commission as an eligible nonadmitted insurer and that there is no protection under the Virginia Property and Casualty Insurance Guaranty Association, established under Chapter 16 (§ 38.2-1600 et seq.) of this title, against financial loss to claimants or policyholders because of the insolvency of an unlicensed an eligible nonadmitted insurer.
A domestic surplus lines insurer is only authorized to write  [  the types of  ] insurance in the Commonwealth that  [ an eligible nonadmitted insurer is authorized to write  a surplus lines broker may procure with a nonadmitted insurer approved by the Commission  ] pursuant to § 38.2-4811.
A domestic surplus lines insurer is only authorized to write the types of insurance in the Commonwealth that a surplus lines broker may procure with a nonadmitted insurer approved by the Commission pursuant to § 38.2-4811.
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Action History

  1. Approved by Governor-Chapter 205 (effective 7/1/18)

  2. Governor's Action Deadline Midnight, March 5, 2018

  3. Enrolled Bill Communicated to Governor on February 26, 2018

  4. Signed by President

  5. Signed by Speaker

  6. Enrolled

  7. Passed House BLOCK VOTE (100-Y 0-N)

  8. Read third time

  9. Read second time

  10. Referred to Committee on Commerce and Labor

  11. Read first time

  12. Placed on Calendar

  13. Printed as engrossed 18102095D-E

  14. Engrossed by Senate as amended SB542E

  15. Committee amendments agreed to

  16. Reading of amendments waived

  17. Read second time

  18. Referred to Committee on Commerce and Labor

  19. Prefiled and ordered printed; offered 01/10/18 18102095D

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 147 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (147)

147 members have not signed on to this bill.

Show all 147 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed House BLOCK VOTE

Passed 100 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 100000
Total 100000
% of votes cast 100%0%0%0%
How each member voted (100)
Member Party Vote
Byron — Yea
Carter — Yea
Collins — Yea
Filler-Corn — Yea
Freitas — Yea
Gooditis — Yea
Habeeb — Yea
Hurst — Yea
James — Yea
Kory — Yea
LaRock — Yea
Landes — Yea
Orrock — Yea
Poindexter — Yea
Robinson — Yea
Rodman — Yea
Rush — Yea
Toscano — Yea
Tyler — Yea
Bell, John J. — Yea
Bell, Richard P. — Yea
Bell, Robert B. — Yea
Jones, J.C. — Yea
Jones, S.C. — Yea
Marshall — Yea
Ayala — Yea
Bourne — Yea
Bulova — Yea
Campbell — Yea
Cline — Yea
Cole — Yea
Edmunds — Yea
Fariss — Yea
Gilbert — Yea
Helsel — Yea
Heretick — Yea
Hugo — Yea
Ingram — Yea
Keam — Yea
Levine — Yea
Lindsey — Yea
Miyares — Yea
Mullin — Yea
Murphy — Yea
Peace — Yea
Plum — Yea
Pogge — Yea
Ransone — Yea
Mr. Speaker — Yea
Stolle — Yea
Turpin — Yea
Yancey — Yea
Alfonso H. Lopez — Yea
Barry D. Knight — Yea
Betsy B. Carr — Yea
C.E. Cliff Hayes, Jr. — Yea
Charniele L. Herring — Yea
Christopher T. Head — Yea
Danica A. Roem — Yea
David A. Reid — Yea
Delores L. McQuinn — Yea
Elizabeth R. Guzman — Yea
Emily M. Jordan — Yea
Garrett McGuire — Yea
Hyland F. "Buddy" Fowler, Jr. — Yea
Israel D. O'Quinn — Yea
James A. "Jay" Leftwich — Yea
James W. Morefield — Yea
Jeion A. Ward — Yea
Jennifer B. Boysko — Yea
Jennifer D. Carroll Foy — Yea
Joshua E. Thomas — Yea
Karrie K. Delaney — Yea
Kathy K.L. Tran — Yea
Kelly K. Convirs-Fowler — Yea
Kimberly Pope Adams — Yea
Kimberly Pope Adams — Yea
Lamont Bagby — Yea
Lashrecse D. Aird — Yea
Luke E. Torian — Yea
M. Keith Hodges — Yea
Marcia S. "Cia" Price — Yea
Marcus B. Simon — Yea
Mark D. Sickles — Yea
Michael J. Webert — Yea
Patrick A. Hope — Yea
Paul E. Krizek — Yea
R. Lee Ware — Yea
Richard C. "Rip" Sullivan, Jr. — Yea
Robert S. Bloxom, Jr. — Yea
Sam Rasoul — Yea
Schuyler T. VanValkenburg — Yea
Terry G. Kilgore — Yea
Terry L. Austin — Yea
Thomas A. Garrett, Jr. — Yea
Thomas C. Wright, Jr. — Yea
Todd E. Pillion — Yea
Tony O. Wilt — Yea
Vivian E. Watts — Yea
Will Davis — Yea

Official roll call →

Subjects

finance health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 542 do?
Establishes criteria for the licensing by the State Corporation Commission of domestic surplus line insurers. A domestic surplus lines insurer is considered a nonadmitted insurer for the purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010 with respect to risks insured in the Commonwealth. The measure provides that policies issued by a domestic surplus lines insurer are subject to the same taxes and maintenance assessments levied upon surplus lines policies issued by eligible nonadmitted insurers, if the Commonwealth is the home state of the insured. Policies issued by a domestic surplus lines insurer are not subject to protections provided by the Virginia Property and Casualty Insurance Guaranty Association. The measure exempts policies issued by a domestic surplus lines insurer from all statutory requirements relating to insurance rating plans, policy forms, policy cancellation and nonrenewal, and premium charged to the insured in the same manner and to the same extent as a nonadmitted insurer domiciled in another state. The measure provides that a domestic surplus lines insurer is only authorized to write the types of insurance in the Commonwealth that a surplus lines broker may procure with a nonadmitted insurer approved by the Commission.
Who sponsors SB 542?
SB 542 is sponsored by Mark D. Obenshain.
What is the current status of SB 542?
This bill has been enacted into law. Introduced January 09, 2018. Enacted.
Where can I track SB 542?
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