Section 3-128 - Solicitations in other states.
§ 3-128. Solicitations in other states.
(a) "Reciprocating state" defined.- In this section, "reciprocating state" means a state under the laws of which a prohibition on solicitation similar to that imposed against domestic insurers under this section is imposed on and enforced against insurers domiciled in that state.
(b) Solicitation in reciprocating state prohibited.- A domestic insurer may not knowingly solicit insurance business in a reciprocating state in which the domestic insurer is not licensed as an authorized insurer.
(c) Advertising authorized.- This section does not prohibit advertising through publication or by radio, television, or other broadcasts originating outside the reciprocating state if:
(1) the insurer is licensed to engage in the insurance business in a majority of the states in which the advertising is disseminated; and
(2) the advertising is not specifically directed to residents of the reciprocating state.
(d) Effect of section.- This section does not prohibit:
(1) insurance covering persons or risks located in a reciprocating state under contracts solicited and issued in states in which the insurer is then licensed; or
(2) insurance effectuated by the insurer as an unauthorized insurer under the laws of the reciprocating state.
(e) Suspension or revocation of certificate of authority.- If the Commissioner finds, after a hearing, that a domestic insurer has violated this section, the Commissioner shall suspend or revoke the certificate of authority of the domestic insurer.
[An. Code 1957, art. 48A, § 275; 1995, ch. 36.]