§ 27-16-1.5. Requirements before defensive pleadings.
(a) Before any unauthorized insurer files or causes to be filed in any pleading in any
court action, suit, or proceeding or in any notice, order, pleading, or process in
an administrative proceeding before the commissioner instituted against a person or
insurer, by service made as provided in § 27-16-1.4, the insurer shall either:
(1) Deposit with the clerk of the court in which the action, suit, or proceeding is pending,
or with the commissioner of insurance in administrative proceedings before the commissioner,
cash or securities, or file with the cle
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§ 27-16-1.5. Requirements before defensive pleadings.
(a) Before any unauthorized insurer files or causes to be filed in any pleading in any
court action, suit, or proceeding or in any notice, order, pleading, or process in
an administrative proceeding before the commissioner instituted against a person or
insurer, by service made as provided in § 27-16-1.4, the insurer shall either:
(1) Deposit with the clerk of the court in which the action, suit, or proceeding is pending,
or with the commissioner of insurance in administrative proceedings before the commissioner,
cash or securities, or file with the clerk or commissioner a bond with good and sufficient
sureties, to be approved by the clerk or commissioner in an amount to be fixed by
the court or commissioner sufficient to secure the payment of any final judgment which
may be rendered in an action or administrative proceeding; or
(2) Procure a certificate of authority to transact the business of insurance in this state.
In considering the application of an insurer for a certificate of compliance for the
purposes of this subsection, the commissioner need not assert the provisions of § 27-2-17 against an insurer with respect to its application if the commissioner determines
that the company would comply with the requirements for the certificate of compliance.
(b) The commissioner of insurance, in any administrative proceeding in which service is
made as provided in § 27-16-1.4, may in the commissioner's discretion, order any postponement as may be necessary
to afford the defendant reasonable opportunity to comply with the provisions of subsection
(a) of this section and to defend the action.
(c) Nothing in subsection (a) of this section shall be construed to prevent an unauthorized
insurer from filing a motion to quash a writ or to set aside service of it made in
the manner provided in § 27-16-1.4, on the ground that the unauthorized insurer has not done any of the acts enumerated
in § 27-16-1.2.