1.Notwithstanding any law of this state to the contrary, any person may apply to the
commissioner for and obtain a certificate of authority to establish and operate a
prepaid legal services organization in compliance with this chapter. A person may not
establish or operate a prepaid legal services organization in this state, or sell, offer to
sell, or solicit offers to purchase or receive advance or periodic considerations in
conjunction with a prepaid legal services plan without obtaining a certificate of
authority under this chapter. A foreign corporation may similarly apply for a certificate
of authority under this chapter, subject to obtaining a certificate of authority as a
foreign corporation under section 10-19.1-136.
2.Every prepaid legal services organization as of July 1, 1981
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1. Notwithstanding any law of this state to the contrary, any person may apply to the
commissioner for and obtain a certificate of authority to establish and operate a
prepaid legal services organization in compliance with this chapter. A person may not
establish or operate a prepaid legal services organization in this state, or sell, offer to
sell, or solicit offers to purchase or receive advance or periodic considerations in
conjunction with a prepaid legal services plan without obtaining a certificate of
authority under this chapter. A foreign corporation may similarly apply for a certificate
of authority under this chapter, subject to obtaining a certificate of authority as a
foreign corporation under section 10-19.1-136.
2. Every prepaid legal services organization as of July 1, 1981, shall submit an
application for a certificate of authority under subsection 3. The applicant may continue
to operate until the commissioner acts upon the application. If the application is denied
under section 26.1-19-06, the applicant must be treated as a prepaid legal services
organization whose certificate of authority has been revoked.
3. The application for a certificate of authority must be made in a form prescribed by the
commissioner and be verified by an officer or authorized representative of the
applicant and must set forth or be accompanied by:
a. A copy of the basic organizational documents of the applicant, if any, including
articles of incorporation, articles of organization, partnership agreements, trust
agreements, or other applicable documents.
b. A copy of the bylaws, regulations, or similar documents, if any, regulating the
conduct of the internal affairs of the applicant.
c. A list of the names, addresses, and official capacities within the organization of all
persons who are responsible for the conduct of the affairs of the applicant,
including all members of the governing body, the officers and directors in the case
of a corporation, the managers and governors in the case of a limited liability
company, the partners under a partnership, the trustees under a trust agreement,
and the members or owners under any other organizational form.
d. A statement generally describing the organization, its enrollment process, its
administrative operations, any cost and quality control assurance mechanisms, its
internal grievance procedure, the method it proposes to use to enroll members,
the geographic area or areas to be served, the location of its office or offices, the
number of providers to be utilized, and the recordkeeping system which will
provide documentation of the utilization of plan benefits by enrolled participants.
e. A power of attorney duly executed by the applicant, if not domiciled in the state,
appointing the commissioner and the commissioner's successors in office and
duly authorized deputies as the true and lawful attorneys of the applicant in and
for this state upon whom all lawful process may be served in any legal action or
proceeding against the organization on a claim for relief arising in this state.
f. Copies of all contract forms the organization proposes to furnish to enrolled
participants.
g. Copies of all contract forms the organization proposes to enter into with
providers.
h. Copies of the forms evidencing coverage to be issued to enrolled participants.
i. Copies of the forms of group contracts, if any, which are to be issued to
employers, unions, trustees, or other organizations.
j. A statement of the financial condition of the organization, including income
statement, balance sheet, and sources of funds.
k. A description of the proposed marketing techniques and copies of any proposed
advertising materials.
l. A schedule of rates with any available actuarial and other data.
m. Any other information the commissioner requires to make the determinations
required under section 26.1-19-06.