(1) No person shall place, procure, or effect insurance upon any risk located in this state in any nonadmitted insurer until such person has first been issued a surplus lines license from the department as provided in section 44-5503.
(2) Application for a surplus lines license shall be made to the department on forms designated and furnished by the department and shall be accompanied by a license fee as established by the director not to exceed two hundred fifty dollars for each individual and corporate surplus lines license.
(3) Before the issuance of a surplus lines license, the applicant shall file with the director and maintain in force while so licensed a bond in favor of the State of Nebraska in the penal sum of not less than ten thousand dollars with authorized surety insurers approved by the director. The director may require a bond in an amount greater than ten thousand dollars if he or she determines that the volume of business written or to be written by a licensee warrants the maintenance of such a bond. In no event shall the director require a bond greater than one hundred thousand dollars. The bond shall be conditioned that the surplus lines licensee shall: (a) Transact business under such license in accordance with the Surplus Lines Insurance Act; (b) duly account for and pay to persons entitled thereto funds received by the licensee in transactions under the license; and (c) pay the taxes required by section 44-5506. The bond shall remain in force until released by the director or until canceled by the surety. Without prejudice to any liability previously incurred under the bond, the surety may cancel the bond upon thirty days' written notice to the licensee and the director. The form of bond shall have the prior written approval of the director.
(4) All corporate surplus lines licenses shall expire on April 30 of each year, and all individual surplus lines licenses shall expire on the licensee's birthday in the first year after issuance in which his or her age is divisible by two. Surplus lines licenses may be renewed within the ninety-day period before their expiration dates. The department shall establish procedures for the renewal of surplus lines licenses. Every licensee shall notify the department within thirty days of any changes in the licensee's residential or business address.
