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 §515I 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.
§191-21 Requirements for Excess & Surplus Lines, Risk Retention Groups & Purchasing Groups
§515I Surplus Lines Insurance