HB 4532 Summary

• Replaces the term "commissioner" with "director" throughout the Insurance Code of 1956 and updates statutory language for modern grammar and clarity.

• Modifies surplus lines insurance regulations to define "nonadmitted insurance" and "nonadmitted insurer" based on the insured's home state, replacing the previous "eligible unauthorized insurer" terminology in certain contexts.

• Establishes new tax and reporting requirements for nonadmitted insurers and licensees, including a 2% tax on premiums and 0.5% regulatory fee, with detailed reporting forms required within 30 days of procuring coverage.

• Clarifies licensing requirements and prohibited practices for surplus lines brokers, including disclosure requirements to insureds that coverage is placed with non-licensed insurers and that payment guarantees may not be available.

• Repeals sections 1921 and 1950 of the Insurance Code and takes effect 90 days after enactment.