Every licensed surplus lines agent who procures surplus lines insurance must promptly forward a completed copy of a surplus lines insurance proposal to the policyholder.
Every new or renewal insurance policy procured and delivered under surplus lines regulations must identify the name and address of the insurance agent who procured it, and must have stamped or affixed the following:
"This insurance contract is with an insurer which has not obtained a certificate of authority to transact a regular insurance business in the state of Wisconsin, and is issued and delivered as surplus lines coverage pursuant to s. 618.41, Wis. Stat. Section 618.43 (1), Wis. Stat., requires payment by the policyholder of 3% tax on gross premium."
The policy must include a description of the subject of insurance and indicate the insurance
- premium charged
- premium taxes to be collected from the policyholder
- name and address of the policyholder
- name and address of the insurer
When an insurer places new or renewal coverage under this section, confirmation of the insurance must be promptly delivered to the policyholder or their agent. This may be in the form of the policy as issued by the insurer or, if the policy is not yet available, a certificate, cover note, or other confirmation of insurance.
No person may do insurance business in this state if the person knows or should know the result is or might be the illegal placement of insurance with an unauthorized insurer or the subsequent servicing of an insurance policy illegally placed with an unauthorized insurer. Any person violating these conditions is personally liable to any claimant under the policy for any damage proximately caused by the person’s violation. Damage may include:
- damage resulting from the necessity of placing insurance with an authorized insurer, or
- failure of the unauthorized insurer to perform the insurance contract.