Title 58, INSURANCE

The plan and agreement for merger or consolidation shall be submitted to and approved by at least two - thirds of the members of each mutual insurer involved voting thereon at meetings called for the purpose pursuant to such reasonable notice and procedure as has been approved by…

Sections 58-5-130 to 58-5-133 , inclusive, shall also apply to mergers and consolidations of mutuals. Source: SL 1966, ch 111 , ch 16, § 39 (4).

No domestic mutual insurer in this state may reorganize or convert into a corporation with capital stock unless the reorganization or conversion plan provides each member of the mutual insurer with cash or other valuable consideration for the fair value of the member's equity in …

No director, officer, insurance producer, or employee of any mutual insurer party to a reorganization or conversion to a corporation with capital stock may receive any fee, commission, compensation, or other valuable consideration for that participation except as set forth in the…

Upon any liquidation of a domestic mutual insurer, its assets remaining after liquidation of its indebtedness, policy obligations, repayment of contributed or borrowed surplus, if any, and expenses of administration, shall be distributed to existing persons who were its members a…

Any such bond filed or deposit made shall remain in effect until released by the director upon compliance with §§ 58-5-12 and 58-5-13 or otherwise terminated by law. Source: SL 1966, ch 111 , ch 16, § 10 (3).

The distributive share of each such member shall be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the combined periods of his membership bear to the aggregate of all premiums so earned on the policies of all such members.…

Every insurer domiciled in this state shall file a report with the director disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance programs unless the acquisitions and dispositions of assets or materia…

Any report obtained by or disclosed to the director pursuant to §§ 58-5-143 to 58-5-153 , inclusive, shall be given confidential treatment and may not be subject to subpoena and may not be made public by the director, the National Association of Insurance Commissioners, or any ot…

No acquisitions or dispositions of assets need be reported pursuant to § 58-5-143 if the acquisitions or dispositions are not material. For purposes of this chapter, a material acquisition, or the aggregate of any series of acquisitions during any thirty - day period, or disposit…

Asset acquisitions subject to this chapter include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials related thereto.…

Asset dispositions subject to this chapter include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition. Source: SL 1995, ch 275 , § 4.

The following information shall be disclosed in any report of a material acquisition or disposition of assets: (1) Date of the transaction; (2) Manner of acquisition or disposition; (3) Description of the assets involved; (4) Nature and amount of the consideration given or receiv…

Insurers shall report acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes an intercompany pooling agreement or arrangement or a one hundred percent reinsurance agreement whereunder the ceding compa…

Upon receipt of the director's approval of the bond or deposit as provided in §§ 58-5-12 to 58-5-14 , inclusive, the directors and officers of the proposed domestic mutual insurer may commence solicitation of applications for insurance. Source: SL 1966, ch 111 , ch 16, § 11 (1).

No nonrenewals, cancellations, or revisions of ceded reinsurance programs need to be reported pursuant to § 58-5-143 if the nonrenewals, cancellations, or revisions are not material. For purposes of the chapter, a material nonrenewal, cancellation, or revision is one that affects…

Subject to the criteria provided in § 58-5-150 , a report shall be filed without regard to which party has initiated the nonrenewal, cancellation or revision of ceded reinsurance whenever one or more of the following conditions exist: (1) The entire cession has been cancelled, no…

The following information shall be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements: (1) Effective date of the nonrenewal, cancellation, or revision; (2) The description of the transaction with an identification of the in…

Insurers shall report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred percent reinsurance agreement …

The term, qualified education loan insurer, means a domestic stock insurer formed under chapter 58-5 for the principal purposes of transacting surety insurance, in this state only, in the education loan market and principally or beneficially owning or through a wholly - owned sub…

Any qualified education loan insurer is subject to the provisions of Title 58 except as otherwise specifically provided in §§ 58-5-154 to 58-5-160 , inclusive. Notwithstanding any other provision of Title 58, a qualified education loan insurer is not subject to the following prov…

Notwithstanding any other provision of Title 58 and in addition to any investment permitted pursuant to chapter 58-27 , a qualified education loan insurer may invest funds in the following, and any such investment made by a qualified education loan insurer is not subject to any a…

In addition to any investment permitted pursuant to § 58-5-156 , a qualified education loan insurer may also invest any amount in common stock, preferred stock, debt obligations, and other securities, including without limitation, membership in a limited liability company, of any…

Notwithstanding § 58-4-43 or any other provision of Title 58, a qualified education loan insurer's subsidiary investment permitted under § 58-5-157 shall be counted fully as an admitted asset on the qualified education loan insurer's balance sheet and may not be disregarded as an…

Notwithstanding the other provisions of chapter 58-29B , for the purposes of determining: (1) If a qualified education loan insurer has, in any transaction involving the transfer of any education loans or other assets, sold such education loans or other assets or pledged such edu…

The director shall, upon the corporation's application therefor, issue temporary insurance producer's licenses for a period not exceeding six months for the solicitation of such applications to individuals qualifying for a resident insurance producer license except as to the taki…

The director of the Division of Insurance may promulgate rules, pursuant to chapter 1-26 , to provide any qualified education loan insurer with additional exemptions from the provisions of Title 58 or to provide additional investment authority. Source: SL 1998, ch 287 , § 7.

Terms used in §§ 58-5-161 through 58-5-171 mean: (1) "Corporate Governance Annual Disclosure," a confidential report filed by an insurer or insurance group in accordance with § 58-5-163 ; (2) "Insurance group," those insurers and affiliates included within an insurance holding co…

Nothing in §§ 58-5-161 to 58-5-171 , inclusive, may be construed to prescribe or impose corporate governance standards and internal procedures beyond that which is required under applicable state corporate law. Nothing in §§ 58-5-161 to 58-5-171 , inclusive, may be construed to l…

An insurer, or the insurance group of which the insurer is a member, shall submit a corporate governance annual disclosure containing the information described in §§ 58-5-161 to 58-5-171, inclusive, to the director no later than June first of each calendar year. If the insurer is…

For purposes of completing the corporate governance annual disclosure, the insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level, an intermediate holding company level, the individual legal entity level, or any …

An insurer who provides information substantially similar to the information required in §§ 58-5-161 to 58-5-171, inclusive, in other documents provided to the director is not required to duplicate information in the corporate governance annual disclosure if the insurer reports w…

The insurer or insurance group has discretion over the responses to the corporate governance annual disclosure inquiries if the disclosure contains the material information necessary to permit the director to gain an understanding of the insurer's or group's corporate governance …

Any document, materials, or other information, including the corporate governance annual disclosure, in the possession or control of the division that is obtained by, created by, or disclosed to the director or any other person under the provisions of §§ 58-5-161 to 58-5-171, inc…

No person, including the director, who received a document, materials, or other information related to the corporate governance annual disclosure, through examination or otherwise, while acting under the authority of the director, or with whom the document, materials, or other in…

In order to assist in the performance of the director's regulatory duties, the director may: (1) Share any document, materials, or other information related to the corporate governance annual disclosure, including any confidential and privileged document, materials, or informatio…

All applications for insurance received pursuant to § 58-5-15 shall be signed by the applicant and shall only cover subjects of insurance resident, located or to be performed in this state. Source: SL 1966, ch 111 , ch 16, § 11 (2).

The director may retain, at the insurer's expense, any third-party consultant, including attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as may be reasonably necessary to assist the director in reviewing the corporate governance a…

The director may enter a written agreement with the National Association of Insurance Commissioners, a third-party consultant, or both, governing the sharing and use of information provided pursuant to §§ 58-5-161 to 58-5-171, inclusive, that expressly requires the written consen…

All such applications shall provide that: (1) Issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority; (2) No insurance is in effect until the certificate of authority has been issued; and (3) The prepaid premium and any depos…

All sums collected by a proposed mutual insurer as premiums or fees on qualifying applications for insurance shall be deposited in trust in a bank or trust company in this state under a trust agreement consistent with § 58-5-25 and with subdivision 58-5-18(3). The corporation sha…

A "stock" insurer is an incorporated insurer with capital divided into shares and owned by its stockholders. Source: SL 1966, ch 111 , ch 16, § 2.

The corporation shall not transact business here as an insurer until it has received a certificate of authority as provided in this title. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 16, § 7 (4); SL 1978, ch 359 , § 2.

Upon application for an original certificate of authority, the insurer must be otherwise qualified therefor under this title, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of the kind of insurance proposed t…

In addition to surplus deposited and thereafter to be maintained as shown in columns (g) and (h) of the schedule in § 58-5-21 , the insurer when first authorized must have on hand surplus funds, which it can thereafter expend in the conduct of its business, in amount not less tha…

The director shall by regulation determine what weight, if any, shall be given group plans, blanket plans, family plans, term insurance, owner's interest in real property, maximum and minimum bodily injury and property damage limits, and reinsurance in the light of national and s…