§ 27-16-1.1 - Purpose of §§ 27-16-1.1 – 27-16-2.6 – Suits by states.
SECTION 27-16-1.1
§ 27-16-1.1 Purpose of §§27-16-1.1 – 27-16-2.6 – Suits by states. – The purpose of §§ 27-16-1.1 – 27-16-2.6 is to subject certaininsurers to the jurisdiction of the insurance commissioner and the courts ofthis state in suits by or on behalf of the state. The legislature declares thatit is concerned with the protection of the residents of this state against actsby insurers not authorized to do an insurance business in this state, by themaintenance of fair and honest insurance markets, by protecting authorizedinsurers which are subject to regulation from unfair competition byunauthorized insurers, and by protecting against the evasion of the insuranceregulatory laws of this state. In furtherance of this state interest, thelegislature provides in these sections methods for substituted service ofprocess upon insurers in any proceeding, suit, or action in any court andsubstituted service of any notice, order, pleading, or process upon insurers inany proceeding by the commissioner of insurance to enforce or effect fullcompliance with the insurance laws of this state. In so doing, the stateexercises its powers to protect the residents of this state and to define whatconstitutes transacting an insurance business in this state, and also exercisespowers and privileges available to this state by virtue of 15 U.S.C. §1011 et seq., which declares that the business of insurance and every personengaged in that business shall be subject to the laws of the several states.