58-44-4Chapter not applicable under certain circumstances.

The provisions of this chapter do not apply if:

(1)    The controlling broker:

(a)    Places insurance only with the controlled insurer, or only with the controlled insurer and a member or members of the controlled insurer's holding company system, or the controlled insurer's parent, affiliate or subsidiary and receives no compensation based upon the amount of premiums written in connection with the insurance; and

(b)    Accepts insurance placements only from nonaffiliated brokers, and not directly from insureds; and

(2)    The controlled insurer, except for insurance business written through a residual market facility, accepts insurance business only from a controlling broker, a broker controlled by the controlled insurer, a broker that is a subsidiary of the controlled insurer. Residual market facility includes government insurance programs, risk pools, and assigned risk plans.

Source: SL 1992, ch 358, § 4.