§ 58‑28‑40. Service of process on Secretary of State as agent for unauthorized company.
(a) Any act of enteringinto a contract of insurance as an insurer or transacting insurance business inthis State, as set forth in G.S. 58‑28‑12 by an unauthorized, foreignor alien company, shall be equivalent to and shall constitute an appointment bysuch company of the Secretary of State to be its true and lawful attorney uponwhom may be served all lawful process in any action or proceeding against itarising out of a violation of G.S. 58‑28‑5, and any of said actsshall be a signification of its agreement that any such process against it,which is so served, shall be of the same legal force and validity as if in factserved upon the company.
(b) Service of process onthe Secretary of State shall be made by the sheriff delivering to and leavingwith the Secretary of State duplicate copies of such process, notice or demand.Service shall be deemed complete when the Secretary of State is so served. TheSecretary of State shall endorse upon both copies the time of receipt and shallforthwith send one of such copies by registered mail, with return receiptrequested, to such insurer at its last known principal place of business asshown on the process, notice or demand served on the Secretary of State. TheCommissioner and the Attorney General shall see that such address is includedon the process, notice or demand which is served upon the Secretary of State. Acopy of the complaint or order of the clerk extending the time for filing thecomplaint must be mailed to the insurer with the copy of the summons. When acopy of the complaint is not mailed with the summons, the Secretary of Stateshall mail a copy of the complaint when it is served on him in the same manneras the copy of summons is required to be mailed.
(c) Upon the return tothe Secretary of State of the requested return receipt showing delivery andacceptance of such registered mail, or upon the return of such registered mailshowing refusal thereof by such unauthorized insurer, the Secretary of Stateshall note thereon the date of such return to him and shall attach either thereturn receipt or such refused mail including the envelope, as the case may be,to the copy of the process, notice or demand theretofore retained by him andshall mail the same to the clerk of the court in which such action orproceeding is pending and in respect of which such process, notice or demandwas issued. Such mailing, in addition to the return by the sheriff, shallconstitute the due return required by law. The clerk of the court shallthereupon file the same as a paper in such action or proceeding.
(d) Service made underthis section shall have the same legal force and validity as if the service hadbeen made personally in this State. The refusal of any such unauthorizedinsurer to accept delivery of the registered mail provided for in subsection(b) of this section or the refusal to sign the return receipt shall not affectthe validity of such service; and any foreign or alien insurer refusing toaccept delivery of such registered mail shall be charged with knowledge of thecontents of any process, notice or demand contained therein.
(e) Whenever service ofprocess is made upon the Secretary of State as herein provided the defendantunauthorized insurer shall have 30 days from the date when the defendantreceives or refuses to accept the registered mail containing the copy of thecomplaint sent as in this section provided in which to appear and answer thecomplaint in the action or proceeding so instituted. Entries on the defendant'sreturn receipt or the refused registered mail shall be sufficient evidence ofsuch date. If the date of acceptance or refusal to accept the registered mailcannot be determined from the entries on the return receipt or from notationsof the postal authorities on the envelope, then the date when the defendantaccepted or refused to accept the registered mail shall be deemed to be thedate that the return receipt or the registered mail was received back by theSecretary of State.
(f) The court in anyaction or proceeding in which service is made in the manner provided in theabove paragraph may, in its discretion, order such postponement as may benecessary to afford such company reasonable opportunity to defend such actionor proceeding.
(g) The Secretary ofState shall keep a summarized record of all processes, notices and demandsserved upon him under this section, and shall record therein the time of suchservice and his action with reference thereto.
(h) Nothing hereincontained shall limit or affect the right to serve any process, notice ordemand to be served upon an insurer in any other manner now or hereafterpermitted by law.
(i) No judgment bydefault shall be entered in any such action or proceeding until the expirationof 30 days from the date of the filing of the affidavit of compliance. (1967, c. 909, s. 1; 1987,c. 864, ss. 62‑64; 1991, c. 720, s. 4; 2008‑124, s. 3.3.)
§ 58‑28‑40. Service of process on Secretary of State as agent for unauthorized company.
(a) Any act of enteringinto a contract of insurance as an insurer or transacting insurance business inthis State, as set forth in G.S. 58‑28‑12 by an unauthorized, foreignor alien company, shall be equivalent to and shall constitute an appointment bysuch company of the Secretary of State to be its true and lawful attorney uponwhom may be served all lawful process in any action or proceeding against itarising out of a violation of G.S. 58‑28‑5, and any of said actsshall be a signification of its agreement that any such process against it,which is so served, shall be of the same legal force and validity as if in factserved upon the company.
(b) Service of process onthe Secretary of State shall be made by the sheriff delivering to and leavingwith the Secretary of State duplicate copies of such process, notice or demand.Service shall be deemed complete when the Secretary of State is so served. TheSecretary of State shall endorse upon both copies the time of receipt and shallforthwith send one of such copies by registered mail, with return receiptrequested, to such insurer at its last known principal place of business asshown on the process, notice or demand served on the Secretary of State. TheCommissioner and the Attorney General shall see that such address is includedon the process, notice or demand which is served upon the Secretary of State. Acopy of the complaint or order of the clerk extending the time for filing thecomplaint must be mailed to the insurer with the copy of the summons. When acopy of the complaint is not mailed with the summons, the Secretary of Stateshall mail a copy of the complaint when it is served on him in the same manneras the copy of summons is required to be mailed.
(c) Upon the return tothe Secretary of State of the requested return receipt showing delivery andacceptance of such registered mail, or upon the return of such registered mailshowing refusal thereof by such unauthorized insurer, the Secretary of Stateshall note thereon the date of such return to him and shall attach either thereturn receipt or such refused mail including the envelope, as the case may be,to the copy of the process, notice or demand theretofore retained by him andshall mail the same to the clerk of the court in which such action orproceeding is pending and in respect of which such process, notice or demandwas issued. Such mailing, in addition to the return by the sheriff, shallconstitute the due return required by law. The clerk of the court shallthereupon file the same as a paper in such action or proceeding.
(d) Service made underthis section shall have the same legal force and validity as if the service hadbeen made personally in this State. The refusal of any such unauthorizedinsurer to accept delivery of the registered mail provided for in subsection(b) of this section or the refusal to sign the return receipt shall not affectthe validity of such service; and any foreign or alien insurer refusing toaccept delivery of such registered mail shall be charged with knowledge of thecontents of any process, notice or demand contained therein.
(e) Whenever service ofprocess is made upon the Secretary of State as herein provided the defendantunauthorized insurer shall have 30 days from the date when the defendantreceives or refuses to accept the registered mail containing the copy of thecomplaint sent as in this section provided in which to appear and answer thecomplaint in the action or proceeding so instituted. Entries on the defendant'sreturn receipt or the refused registered mail shall be sufficient evidence ofsuch date. If the date of acceptance or refusal to accept the registered mailcannot be determined from the entries on the return receipt or from notationsof the postal authorities on the envelope, then the date when the defendantaccepted or refused to accept the registered mail shall be deemed to be thedate that the return receipt or the registered mail was received back by theSecretary of State.
(f) The court in anyaction or proceeding in which service is made in the manner provided in theabove paragraph may, in its discretion, order such postponement as may benecessary to afford such company reasonable opportunity to defend such actionor proceeding.
(g) The Secretary ofState shall keep a summarized record of all processes, notices and demandsserved upon him under this section, and shall record therein the time of suchservice and his action with reference thereto.
(h) Nothing hereincontained shall limit or affect the right to serve any process, notice ordemand to be served upon an insurer in any other manner now or hereafterpermitted by law.
(i) No judgment bydefault shall be entered in any such action or proceeding until the expirationof 30 days from the date of the filing of the affidavit of compliance. (1967, c. 909, s. 1; 1987,c. 864, ss. 62‑64; 1991, c. 720, s. 4; 2008‑124, s. 3.3.)
§ 58‑28‑40. Service of process on Secretary of State as agent for unauthorized company.
(a) Any act of enteringinto a contract of insurance as an insurer or transacting insurance business inthis State, as set forth in G.S. 58‑28‑12 by an unauthorized, foreignor alien company, shall be equivalent to and shall constitute an appointment bysuch company of the Secretary of State to be its true and lawful attorney uponwhom may be served all lawful process in any action or proceeding against itarising out of a violation of G.S. 58‑28‑5, and any of said actsshall be a signification of its agreement that any such process against it,which is so served, shall be of the same legal force and validity as if in factserved upon the company.
(b) Service of process onthe Secretary of State shall be made by the sheriff delivering to and leavingwith the Secretary of State duplicate copies of such process, notice or demand.Service shall be deemed complete when the Secretary of State is so served. TheSecretary of State shall endorse upon both copies the time of receipt and shallforthwith send one of such copies by registered mail, with return receiptrequested, to such insurer at its last known principal place of business asshown on the process, notice or demand served on the Secretary of State. TheCommissioner and the Attorney General shall see that such address is includedon the process, notice or demand which is served upon the Secretary of State. Acopy of the complaint or order of the clerk extending the time for filing thecomplaint must be mailed to the insurer with the copy of the summons. When acopy of the complaint is not mailed with the summons, the Secretary of Stateshall mail a copy of the complaint when it is served on him in the same manneras the copy of summons is required to be mailed.
(c) Upon the return tothe Secretary of State of the requested return receipt showing delivery andacceptance of such registered mail, or upon the return of such registered mailshowing refusal thereof by such unauthorized insurer, the Secretary of Stateshall note thereon the date of such return to him and shall attach either thereturn receipt or such refused mail including the envelope, as the case may be,to the copy of the process, notice or demand theretofore retained by him andshall mail the same to the clerk of the court in which such action orproceeding is pending and in respect of which such process, notice or demandwas issued. Such mailing, in addition to the return by the sheriff, shallconstitute the due return required by law. The clerk of the court shallthereupon file the same as a paper in such action or proceeding.
(d) Service made underthis section shall have the same legal force and validity as if the service hadbeen made personally in this State. The refusal of any such unauthorizedinsurer to accept delivery of the registered mail provided for in subsection(b) of this section or the refusal to sign the return receipt shall not affectthe validity of such service; and any foreign or alien insurer refusing toaccept delivery of such registered mail shall be charged with knowledge of thecontents of any process, notice or demand contained therein.
(e) Whenever service ofprocess is made upon the Secretary of State as herein provided the defendantunauthorized insurer shall have 30 days from the date when the defendantreceives or refuses to accept the registered mail containing the copy of thecomplaint sent as in this section provided in which to appear and answer thecomplaint in the action or proceeding so instituted. Entries on the defendant'sreturn receipt or the refused registered mail shall be sufficient evidence ofsuch date. If the date of acceptance or refusal to accept the registered mailcannot be determined from the entries on the return receipt or from notationsof the postal authorities on the envelope, then the date when the defendantaccepted or refused to accept the registered mail shall be deemed to be thedate that the return receipt or the registered mail was received back by theSecretary of State.
(f) The court in anyaction or proceeding in which service is made in the manner provided in theabove paragraph may, in its discretion, order such postponement as may benecessary to afford such company reasonable opportunity to defend such actionor proceeding.
(g) The Secretary ofState shall keep a summarized record of all processes, notices and demandsserved upon him under this section, and shall record therein the time of suchservice and his action with reference thereto.
(h) Nothing hereincontained shall limit or affect the right to serve any process, notice ordemand to be served upon an insurer in any other manner now or hereafterpermitted by law.
(i) No judgment bydefault shall be entered in any such action or proceeding until the expirationof 30 days from the date of the filing of the affidavit of compliance. (1967, c. 909, s. 1; 1987,c. 864, ss. 62‑64; 1991, c. 720, s. 4; 2008‑124, s. 3.3.)
