Title 15, Commerce and TradeRelease 119-110

§6733 Effect on State Laws Restricting Redomestication

Title 15 › CHAPTER 93 — INSURANCE › SUBCHAPTER II — REDOMESTICATION OF MUTUAL INSURERS › § 6733

Last updated Sep 22, 2026|Official source

Summary

Stops a state where an insurer used to be from using its laws to block, punish, or treat an insurer (or its affiliates), customers, or agents unfairly just because the insurer moved its legal home under this law. It also stops any state from canceling licenses, approvals, or agent appointments simply because a mutual insurer moved. States where the insurer does business must treat a moving insurer the same as any other insurer that did not move. If a licensed state refuses, delays, or tries to revoke the insurer’s authority right after the move — and does not act the same way it normally acts for other foreign insurers — the insurer is freed from that state’s laws to the extent those laws would make its business illegal or control its operations. But the licensed state may still require the insurer to follow unfair-claims rules; pay taxes fairly; register and name the state regulator to receive legal papers; accept coordinated financial exams if the new home state has not started one within 1 year of the move; follow court orders in insolvency or voluntary dissolution; obey fraud laws (with any injunction coming from a court); join insolvency guaranty associations; and require agents to be licensed without imposing extra rules that discriminate against nonresident agents.

Full Legal Text

Title 15, §6733

Commerce and Trade, Source: USLM XML via OLRC

(a)In general

Unless otherwise permitted by this subchapter, State laws of any transferor domicile that conflict with the purposes and intent of this subchapter are preempted, including but not limited to—

(1)any law that has the purpose or effect of impeding the activities of, taking any action against, or applying any provision of law or regulation to, any insurer or an affiliate of such insurer because that insurer or any affiliate plans to redomesticate, or has redomesticated, pursuant to this subchapter;

(2)any law that has the purpose or effect of impeding the activities of, taking action against, or applying any provision of law or regulation to, any insured or any insurance licensee or other intermediary because such person has procured insurance from or placed insurance with any insurer or affiliate of such insurer that plans to redomesticate, or has redomesticated, pursuant to this subchapter, but only to the extent that such law would treat such insured licensee or other intermediary differently than if the person procured insurance from, or placed insurance with, an insured licensee or other intermediary which had not redomesticated; and

(3)any law that has the purpose or effect of terminating, because of the redomestication of a mutual insurer pursuant to this subchapter, any certificate of authority, agent appointment or license, rate approval, or other approval, of any State insurance regulator or other State authority in existence immediately prior to the redomestication in any State other than the transferee domicile.

(b)Differential treatment prohibited

No State law, regulation, interpretation, or functional equivalent thereof, of a State other than a transferee domicile may treat a redomesticating or redomesticated insurer or any affiliate thereof any differently than an insurer operating in that State that is not a redomesticating or redomesticated insurer.

(c)Laws prohibiting operations

If any licensed State fails to issue, delays the issuance of, or seeks to revoke an original or renewal certificate of authority of a redomesticated insurer promptly following redomestication, except on grounds and in a manner consistent with its past practices regarding the issuance of certificates of authority to foreign insurers that are not redomesticating, then the redomesticating insurer shall be exempt from any State law of the licensed State to the extent that such State law or the operation of such State law would make unlawful, or regulate, directly or indirectly, the operation of the redomesticated insurer, except that such licensed State may require the redomesticated insurer to—

(1)comply with the unfair claim settlement practices law of the licensed State;

(2)pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on licensed insurers or policyholders under the laws of the licensed State;

(3)register with and designate the State insurance regulator as its agent solely for the purpose of receiving service of legal documents or process;

(4)submit to an examination by the State insurance regulator in any licensed State in which the redomesticated insurer is doing business to determine the insurer’s financial condition, if—

(A)the State insurance regulator of the transferee domicile has not begun an examination of the redomesticated insurer and has not scheduled such an examination to begin before the end of the 1-year period beginning on the date of the redomestication; and

(B)any such examination is coordinated to avoid unjustified duplication and repetition;

(5)comply with a lawful order issued in—

(A)a delinquency proceeding commenced by the State insurance regulator of any licensed State if there has been a judicial finding of financial impairment under paragraph (7); or

(B)a voluntary dissolution proceeding;

(6)comply with any State law regarding deceptive, false, or fraudulent acts or practices, except that if the licensed State seeks an injunction regarding the conduct described in this paragraph, such injunction must be obtained from a court of competent jurisdiction as provided in section 6734(a) of this title;

(7)comply with an injunction issued by a court of competent jurisdiction, upon a petition by the State insurance regulator alleging that the redomesticating insurer is in hazardous financial condition or is financially impaired;

(8)participate in any insurance insolvency guaranty association on the same basis as any other insurer licensed in the licensed State; and

(9)require a person acting, or offering to act, as an insurance licensee for a redomesticated insurer in the licensed State to obtain a license from that State, except that such State may not impose any qualification or requirement that discriminates against a nonresident insurance licensee.

Reference

Citations & Metadata

Citation

15 U.S.C. § 6733

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110