§ 23-69-114 — Formation of nonlife mutual insurer - Applications for insurance

(a) Upon receipt of the Insurance Commissioner's approval of the bond or deposit as provided in § 23-69-113 , the directors and officers of the proposed domestic mutual insurer may commence solicitation of the requisite applications for insurance policies as they may accept, and they may receive deposits of premiums thereon. (b) All applications shall be in writing signed by the applicant, covering subjects of insurance resident, located, or to be performed in this state. (c) All applications shall provide that: (1) Insurance of the policy is contingent upon the insurer's qualifying for and receiving a certificate of authority; (2) No insurance is in effect unless and until the certificate of authority has been issued; and (3) The prepaid premium or deposit, and membership or policy fee, if any, shall be refunded in full to the applicant if organization is not completed and the certificate of authority is not issued and received by the insurer before a specified reasonable date. The date shall be not later than one (1) year after the date of the certificate of incorporation. (d) All qualifying premiums collected shall be in cash. (e) (1) Solicitation for qualifying applications for insurance shall be by licensed agents of the corporation, and upon the corporation's application, the commissioner shall issue temporary agent's licenses expiring on the date specified pursuant to subdivision (c)(3) of this section to individuals qualified as for an agent's or producer's license except as to the taking or passing of an examination. (2) The commissioner may suspend or revoke any license for any of the causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of agents and producers in general under § 23-64-101 et seq., § 23-64-201 et seq., and the Producer Licensing Model Act, § 23-64-501 et seq.

Legislative History

Acts 1959, No. 148, § 464; A.S.A. 1947, § 66-4212; Acts 2003, No. 1203, § 15.