1. Purpose 1. PROTECT PERSONS seeking insurance in PA
2. PERMIT surplus lines insurance to be placed with reputable and financially
sound non-admitted insurers and exported from this Commonwealth pursuant
to this article
3. Establishing a SYSTEM OF REGULATION which will permit orderly access to
surplus lines insurance in this Commonwealth and encouraging insurers to
make NEW AND INNOVATIVE types of insurance available to consumers in the
Commonwealth
4. PROTECT REVENUES
2. admitted user insurer licensed to do an insurance business in this Commonwealth
3. affiliate with respect to any insured, any entity that controls, is controlled by or is under
common control with the insured
4. affiliated group any group of entities that are all aflliated
5. business entity a corporation, partnership, a limited liability company, a limited liability partner-
ship, a business trust or any other entity doing business other than a natural
person
6. capital the term, as used in the financial requirements section 1605, means funds paid
for stock or other evidence of ownership
7. commissioner The Insurance Commssioner of the Commonwealth
8. Control An entity has control over another entity if:
1. the entity directly or indirectly involved or acting through one or more other
persons owns, controls or has the power to vote 25% or more of any class of
voting securities of the other entity or;
2. the entity controls in any manner the election of a majority of the directors or
trustees of the other entity
, 9. Department The Insurance Department of the Commonwealth
10. Eligible surplus a nonadmitted insurer with which a surplus lines licensee may place surplus
lines insurer lines insurance under section 1604
11. export to place surplus lines insurance with either a nonadmitted insurer or an eligible
surplus lines insurer in accordance with their home state
12. home state come back
13. independently any insurance directly procured by an insured from a nonadmitted user
procured
insurance
14. insurance produc- a person that is licensed to sell solicit or negotiate contracts of insurance with
er admitted insurers
15. kind of insurance one of the types of insurance required to be reported in the annual statement
which must be filed with the department by admitted insurers
16. nonadmitted in- an insurer not authorized and not licensed to do an insurance business in this
surer Commonwealth. The term includes insurance exchanges as authorized under
the laws of various states. The term does not include a risk retention group.
17. person a natural person or business entity
18. purchasing group an entity formed to purchase liability insurance under the Risk Retention Amend-
ments of 1986
19. risk retention an insurer organized to do business under the Risk Retention Amendments of
group 1986
20. State
2. PERMIT surplus lines insurance to be placed with reputable and financially
sound non-admitted insurers and exported from this Commonwealth pursuant
to this article
3. Establishing a SYSTEM OF REGULATION which will permit orderly access to
surplus lines insurance in this Commonwealth and encouraging insurers to
make NEW AND INNOVATIVE types of insurance available to consumers in the
Commonwealth
4. PROTECT REVENUES
2. admitted user insurer licensed to do an insurance business in this Commonwealth
3. affiliate with respect to any insured, any entity that controls, is controlled by or is under
common control with the insured
4. affiliated group any group of entities that are all aflliated
5. business entity a corporation, partnership, a limited liability company, a limited liability partner-
ship, a business trust or any other entity doing business other than a natural
person
6. capital the term, as used in the financial requirements section 1605, means funds paid
for stock or other evidence of ownership
7. commissioner The Insurance Commssioner of the Commonwealth
8. Control An entity has control over another entity if:
1. the entity directly or indirectly involved or acting through one or more other
persons owns, controls or has the power to vote 25% or more of any class of
voting securities of the other entity or;
2. the entity controls in any manner the election of a majority of the directors or
trustees of the other entity
, 9. Department The Insurance Department of the Commonwealth
10. Eligible surplus a nonadmitted insurer with which a surplus lines licensee may place surplus
lines insurer lines insurance under section 1604
11. export to place surplus lines insurance with either a nonadmitted insurer or an eligible
surplus lines insurer in accordance with their home state
12. home state come back
13. independently any insurance directly procured by an insured from a nonadmitted user
procured
insurance
14. insurance produc- a person that is licensed to sell solicit or negotiate contracts of insurance with
er admitted insurers
15. kind of insurance one of the types of insurance required to be reported in the annual statement
which must be filed with the department by admitted insurers
16. nonadmitted in- an insurer not authorized and not licensed to do an insurance business in this
surer Commonwealth. The term includes insurance exchanges as authorized under
the laws of various states. The term does not include a risk retention group.
17. person a natural person or business entity
18. purchasing group an entity formed to purchase liability insurance under the Risk Retention Amend-
ments of 1986
19. risk retention an insurer organized to do business under the Risk Retention Amendments of
group 1986
20. State
