40-760. Deficiencies in operation by foreign or alien society; notice to correct; show cause requirement upon failure to correct; suspension, revocation or refusal of authority to do business; certain
40-760
40-760. Deficiencies in operation by foreign or alien society; noticeto correct; show cause requirement upon failure to correct; suspension,revocation or refusal of authority to do business; certain contractsauthorized to be continued.(a) When the commissioner of insurance upon investigationfinds that a foreign or alien society transacting or applying to transactbusiness in this state: (1) Has exceeded its powers, (2) has failed tocomply with any of the provisions of this article, (3) is not fulfillingits contracts in good faith, or (4) is conducting its business fraudulentlyor in a manner hazardous to its members or creditors or the public, thecommissioner shall notify the society of such deficiency or deficienciesand state in writing the reasons for dissatisfaction. The commissionershall at once issue a written notice to the society requiring that thedeficiency or deficiencies which exist be corrected. After such notice thesociety shall have a 30-day period in which to comply with thecommissioner's request for correction. If the society fails to comply, thecommissioner shall notify the society of such findings of noncompliance andrequire the society to show cause on a date named why its license shouldnot be suspended, revoked or refused. If on such date the society does notpresent good and sufficient reason why its authority to do business in thisstate should not be suspended, revoked or refused, the commissioner maysuspend or refuse the license of the society to do business in this stateuntil satisfactory evidence is furnished to the commissioner that suchsuspension or refusal should be withdrawn, or the commissioner may revokethe authority of the society to do business in this state.
(b) Nothing contained in this section shall be construed to prevent anysuch society from continuing in good faith all contracts made in this stateduring the time such society was legally authorized to transact business herein.
History: L. 1988, ch. 154, § 23; Jan. 1, 1989.