An admitted insurer, without first obtaining the written consent of the commissioner, shall not enter into any agreement or arrangement with any nonadmitted insurer by way of sale, reinsurance, merger, consolidation, assumption, or in any other manner which results in the admitted insurer ceasing to service in this state any group insurance contract or 10 or more individual insurance contracts entered into in this state or issued for delivery in this state insuring the life or person of any resident of this state or any property in this state.
Service as used in this section includes but is not limited to:
(a)Adjustment and payment of losses.
(b)Appropriate amendment of insurance contracts as called for therein to keep the coverage consistent with current conditions.
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An admitted insurer, without first obtaining the written consent of the commissioner, shall not enter into any agreement or arrangement with any nonadmitted insurer by way of sale, reinsurance, merger, consolidation, assumption, or in any other manner which results in the admitted insurer ceasing to service in this state any group insurance contract or 10 or more individual insurance contracts entered into in this state or issued for delivery in this state insuring the life or person of any resident of this state or any property in this state.
Service as used in this section includes but is not limited to:
(a)
Adjustment and payment of losses.
(b)
Appropriate amendment of insurance contracts as called for therein to keep the coverage consistent with current conditions.
(c)
Collection of premiums.
(d)
Issuance of policies, certificates and other documents, in fulfillment of prior agreements.
(e)
Returning unearned premiums.
(f)
Payment of cash values.
No admitted insurer shall in whole or in part or in any manner so cease to so service such insurance business without such written consent from the commissioner unless it has by valid contract arranged for an admitted insurer to perform such servicing.
This section shall not affect or modify any of the provisions of this code relating to statement credit allowed for reinsurance.
Violation of this section constitutes a failure to comply with the laws of this state regarding the governmental control of insurers within the meaning of Section 701.