states allow unauthorized insurers to sell within the state certain kinds of insurance to "industrial insureds.
New York's Prohibition Against Calling Attention to Unauthorized Insurers
The purpose of this bill is to authorize the Insurance Commissioner to apply the same enforcement provisions to unlicensed professional employer organizations (PEOs) as are applicable to unauthorized insurers
and to allow the fraud unit to investigate PEOs.
Unauthorized Insurance Entities: Knowing the Difference" is a two-hour course designed to better educate students regarding the differences between unauthorized insurers
and illegal insurance entities.
Moreover, insureds do not receive guaranty fund protection on policies issued by such unauthorized insurers
Procurement tax rates are often higher than premium tax rates, to discourage insure& from securing insurance coverage from unauthorized insurers
He went on to say that when policyholders pay premiums to unauthorized insurers
, they place themselves at significant risk with payment of claims.
The requirement that unauthorized insurers
provide funds in trust or other collateral equal to 100% of their gross actuarially estimated liabilities to U.
Unlicensed, unauthorized insurers
include not only traditional insurers that have neither obtained licenses in a state nor become a qualified surplus lines insurer therein, but also most captive insurance companies as they typically do not become either extensively licensed outside their domicile jurisdiction or authorized to write coverages on a surplus lines basis.
And while some states are taking proactive steps to educate agents, such as Florida's recently enacted continuing education requirements specific to unauthorized insurers
, many state departments of insurance have been slow to assist the agents and brokers in this legal mine field.
The Internet also provides a greater opportunity for agents or unlicensed people to knowingly or unknowingly market insurance for unauthorized insurers
to Florida consumers--and consumers in other states, for that matter," she said.
The Iowa insurance commissioner held a hearing to determine whether Swanco was in violation of state law regarding unauthorized insurers