Section 991.1611 - Surplus lines advisory organizations(a) A surplus lines advisory organization of surplus lines licensees may be formed to: (1) Facilitate and encourage compliance by surplus lines licensees with the laws of this Commonwealth and the rules and regulations of the department relative to surplus lines insurance.(2) Provide means for the examination, which shall remain confidential, of all surplus lines coverages written by surplus lines licensees to determine whether such coverages comply with such laws and regulations.(3) Communicate with organizations of admitted insurers with respect to the proper use of the surplus lines market.(4) Receive and disseminate to surplus lines licensees information relative to surplus lines insurance.(b) The functions of the organization shall in no way supplant or delegate current regulatory authority of the department to administer the provisions of this article.(c) An advisory organization shall file with the department for approval: (1) A copy of its constitution, its articles of agreement or association or its certificate of incorporation.(2) A copy of its bylaws, rules and regulations governing its activities.(3) Deleted by 2010, March 22, P.L. 147, No. 14, effective in 180 days [Sept. 20, 2010].(4) The name and address of a resident of this Commonwealth upon whom notices or orders of the department or processes issued at its direction may be served.(5) An agreement that the department may examine such advisory organization in accordance with the provisions of this section.(d) The department may, as necessary, make or cause to be made an examination of each such advisory organization. The reasonable cost of any such examination shall be paid by the advisory organization upon presentation to it by the department of a detailed account of each cost. The officers, directors, managers, agents and employes of such advisory organization may be examined at any time, under oath, and shall exhibit all books, records, accounts, documents or agreements governing its method of operation. The department shall furnish two copies of the examination report to the advisory organization examined and shall notify such organization that it may, within twenty (20) days thereof, request a hearing on the report or on any facts or recommendations therein. If the department finds such advisory organization or any member thereof to be in violation of this article, it may issue a cease and desist order requiring the discontinuance of such violation and may impose any other penalties as set forth in this article.(e) The department may contract with a surplus lines advisory organization to render advice and assistance in carrying out the purposes of this article. The services performed by the advisory organization pursuant to such contract may be funded by a stamping fee assessed on each surplus lines policyholder whose policy is submitted to the advisory organization. The stamping fee shall be established by the board of governors of the advisory organization, from time to time, and shall be subject to approval by the department.(f) The advisory organization may submit reports and make recommendations to the department regarding the financial condition of any eligible surplus lines insurer. These reports and recommendations shall not be considered to be public information or subject to any Federal or state freedom of information law. There shall be no liability on the part of nor shall any cause of action of any nature be sustained against eligible surplus lines insurers, the advisory organization or its members, agents, employes, officers or directors or the department or authorized representatives of the department for statements and any reports or recommendations made by them in good faith under this section.(g) By order of the department, a surplus lines licensee may be compelled to attend educational seminars as a condition of continued licensure under this article.1921, May 17, P.L. 682, No. 284, art. XVI, § 1611, added 1992, Dec. 18, P.L. 1519, No. 178, § 19, effective in 120 days. Amended 2010, March 22, P.L. 147, No. 14, §8, effective in 180 days [ 9/20/2010]; 2011, June 30, P.L. 194, No. 28, § 4, imd. effective.