Title 08, Title 08: Banking and Insurance

§ 3304. Capital and surplus requirements To qualify for authority to transact the business of insurance, a stock insurer seeking such authorization shall possess and thereafter maintain unimpaired paid-in capital of not less than $2,000,000.00 and, when first so authorized, shall…

§ 3305. Petition; hearing Before the articles of association are transmitted to the Secretary of State, the incorporators shall petition the Commissioner to hold a public hearing, in the county where the proposed corporation is to have its principal office, to determine whether t…

§ 3306. Duties of Secretary of State, records The articles of association, the certificate, and the organization fee shall be transmitted to the Secretary of State, who shall thereupon record both the articles and the certificate. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, su…

§ 3307. Consideration for stock (a) The capital stock of a corporation doing any and all insurance and reinsurance comprised in any one or more of the subdivisions of section 3301 of this title shall be issued at not less than par and under any of the following conditions, subjec…

§ 3308. List of stockholders; certificate to transact business; liability of president and directors When the entire capital stock of a corporation having capital stock has been issued, a complete list of the stockholders with the name and post office address of each and the numb…

§ 3308a. Reorganization formations Notwithstanding sections 3302, 3303, 3304, 3307, 3308, and 3309 of this title, the Commissioner may permit the formation of an insurance company without capital or surplus to be merged with or into or consolidated with an existing insurance comp…

§ 3309. Mutual insurers to commence business; when (a) A corporation that, according to its charter, is not to have a capital stock shall not receive authorization to commence business until: (1) it complies with preliminary requirements for the procurement of an adequate amount …

§ 3310. Amendment of charter A corporation formed under the provisions of this chapter or by a special act of the Legislature may amend its articles of association or its charter as provided therein or in the absence of such provision by vote of three-fourths of its stockholders …

§ 3311. Quorum In the case of a mutual insurance company, the policyholders or annuitants therein, who attend a duly called meeting, shall constitute a quorum. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 11).)

§ 3312. Construction with other laws (a) Corporations formed under the provisions of this subchapter shall have the privileges and be subject to the provisions of the general corporation law as well as the applicable provisions contained in this part. In the event of conflict bet…

§ 3313. Proxies (a) The Commissioner may prescribe by rules and regulations, the form, content and manner of solicitation of any proxy, consent, or authorization in respect of any voting security issued by a domestic insurer as necessary or appropriate in the public interest, or …

§ 3314. Annual financial statements; reports; filing fee Notwithstanding any other provision of law, any insurer, of whatever form and description other than captive insurance companies organized under chapter 141 of this title, that is required by statute to file an annual state…

§ 3315. Coordinated regulation Notwithstanding section 5112 of this title and any other provision of this title, the Commissioner may cooperate and coordinate with the insurance supervisory authorities of other states or through the facilities or subsidiaries of a national organi…

§ 3316. Corporate governance; disclosure (a) Purpose. The purpose of this section is to: (1) provide the Commissioner a summary of an insurer or insurance group’s corporate governance structure, policies, and practices so the Commissioner may gain and maintain an understanding of…

§ 3361. Requirements for license (a) A foreign or alien insurer shall not transact business in this State unless it first obtains from the Commissioner a license authorizing it to do so. Before receiving a license, it shall file with the Commissioner a certified copy of its chart…

§ 3362. Authority to transact various kinds of insurance business A foreign or alien insurer may transact more than one kind of insurance business, provided the charter of such corporation authorizes it to transact such different kinds of insurance business and its capital is suf…

§ 3363. Revocation of license If such insurer violates any of the laws of this State relating to insurance companies, the Commissioner may revoke its license and cause notice thereof to be published at least one week in two daily newspapers, one of general circulation in Montpeli…

§ 3364. Authorization for investment purposes only Such insurer may make investments in this State without qualifying to do business in this State as a foreign corporation under the general corporation law or as a foreign or alien insurer under this article, provided such insurer…

§ 3365. Plan of organization Such insurers admitted to do business in this State under authority of this article shall be incorporated as stock or mutual companies as defined in section 3302 of this title. Except as provided in sections 4831 through 4856 of this title, no unincor…

§ 3366. Assets of companies (a)(1) A foreign or alien insurer authorized to do business in this State shall possess and thereafter maintain unimpaired paid-in capital or basic surplus of not less than $2,000,000.00 and, when first so authorized, shall possess and maintain free su…

§ 3367. Retaliatory provisions (a) If another state or country imposes upon or requires of a domestic insurer, association, or society, or a surety or guaranty company, or its agents doing business therein, fees, fines, penalties, deposits, obligations, or prohibitions exceeding …

§ 3368. Transacting business without certificate of authority prohibited (a) It shall be unlawful for any insurer to enter into a contract of insurance as an insurer or to transact insurance business in this State as set forth in subsection (b) of this section, without a certific…

§ 3368a. Unauthorized and misleading transactions (a) No person shall transact insurance business in this State unless the Commissioner has issued a license or certificate of authority to such person as required by section 3361 or 3368 of this title, or by chapters 123, 125, and …

§ 3369. Commissioner may enjoin unauthorized insurer Whenever the Commissioner believes, from evidence satisfactory to him or her, that any foreign or alien insurer is violating or about to violate the provisions of section 3368 of this title, the Commissioner may, through the At…

§ 3370. Service of process upon unauthorized insurer by director (a) Any act of entering into a contract of insurance as an insurer or transacting insurance business in this State as set forth in subsection (b) of section 3368 of this title, by an unauthorized foreign or alien in…

§ 3371. Limits of risk (a) No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in this State or elsewhere, in an amount exceeding 10 percent of its surplus to policyholders unless otherwise authorized by the Commissioner. (b) A “su…

§ 3381. Legislative purpose and policy The purpose of this article is to subject certain insurers to the jurisdiction of courts of this State by or on behalf of insureds or beneficiaries under insurance contracts. The Legislature declares that it is a subject of concern that many…

§ 3382. Acts that constitute Secretary of State agent for service of process Any of the following acts in this State, effected by mail or otherwise, by an unauthorized foreign or alien insurer: (1) the issuance or delivery of contracts of insurance to residents of this State or t…

§ 3383. Service upon the Secretary of State notice to defendant Such service of process shall be made by delivering to and leaving with the Secretary of State or some person in apparent charge of his or her office two copies thereof and the payment to him or her of such fee as is…

§ 3384. Service upon other agents; notice to defendant Service of process in any such action, suit, or proceeding shall in addition to the manner provided in section 3383 of this title be valid if served upon any person within this State who, in this State on behalf of such insur…

§ 3386. Effect on other modes of service Nothing in sections 3382-3384 of this title shall limit or abridge the right to serve any process, notice, or demand upon any insurer in any other manner now or hereafter permitted by law. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, sub…

§ 3387. Prerequisites to defense of action Before any unauthorized foreign or alien insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, such unauthorized insurer shall: (1) deposit with the clerk of the court in which such…

§ 3388. Postponements The court in any action, suit, or proceeding, in which service is made in the manner provided in section 3383 or 3384 of this title may, in its discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply w…

§ 3389. Motion to quash for improper service Nothing in section 3387 of this title is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in section 3383 or 3384 of th…

§ 3390. Attorney’s fees In any action against an unauthorized foreign or alien insurer upon a contract of insurance issued or delivered in this State to a resident thereof or to a corporation authorized to do business therein, if the insurer has failed for 30 days after demand pr…

§ 3421. Mutualization of stock insurer (a) A domestic stock insurer may become a mutual insurer under such plan and procedure as may be approved by the Commissioner after a hearing held substantially in accordance with the provisions of section 3305 of this title. (b) The Commiss…

§ 3422. Mutual insurers—Prohibitions A domestic mutual insurer shall not merge or consolidate with a stock insurer where the surviving corporation will be a stock insurer. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 4, § 2); amended 1993, No. 28, § 1, eff. May 21, 1993.…

§ 3423. Converting mutual insurer or mutual insurance holding company (a) A mutual insurer may become a stock insurer or a mutual insurance holding company may become a stock company or reorganize under such reasonable plan and procedure as may be approved by the Commissioner aft…

§ 3424. Procedure for merger Any domestic insurer subject to the prohibitions of section 3422 of this title may merge with any other insurer in the following manner: (1) The board of directors of each insurer shall, by a resolution adopted by a majority vote of the members of suc…

§ 3425. Procedure for consolidation Any domestic insurer, subject to the prohibitions of section 3422 of this title, may consolidate with any other insurer or insurers in the following manner: (1) The board of directors of each insurer shall, by a resolution adopted by a majority…

§ 3426. Effective date of merger or consolidation Upon the issuance of a certificate of merger or a certificate of consolidation by the Secretary of State, the merger or consolidation, as the case may be, shall be effected, subject to the rights of dissenting shareholders, member…

§ 3427. Voting At any meeting of the shareholders, members, or policyholders, as the case may be, held pursuant to the resolution of the board of directors for the purpose of adopting an agreement of merger or consolidation, as provided for in sections 3424 and 3425 of this title…

§ 3428. Rights of dissenting shareholders (a) If any shareholder of any insurer, a party to a merger or consolidation, who did not vote in favor of such merger or consolidation at the meeting at which the agreement of merger or consolidation was adopted by the shareholders of suc…

§ 3429. Rights of dissenting members or policyholders If not less than five percent of the members or policyholders in a mutual insurer, who did not vote in favor of such merger or consolidation at the meeting at which the agreement of merger or consolidation was adopted by the m…

§ 3430. Effect of merger or consolidation When such merger or consolidation has been effected as hereinabove provided; (1) The several insurers parties to the agreement of merger or consolidation shall be a single insurer that shall be: (A) in case of a merger, the surviving insu…

§ 3431. Merger or consolidation between domestic and foreign insurers—Requirements (a) In case of a merger or consolidation between a domestic and a foreign insurer, the articles of merger or consolidation shall be regarded as executed by the proper officers of said foreign insur…