20-206. Authority to transact insurance
A. No person shall act as an insurer and no insurer shall transact insurance in
this state except as authorized by a subsisting authority granted to it by the director,
except as to such transactions as are expressly otherwise provided for in this title. No
such authority shall be required for an insurer, formerly so authorized, to enable it to
investigate and settle losses under its policies lawfully written in this state, or to
liquidate such assets and liabilities of the insurer, other than collection of new
premiums, as has resulted from its former authorized operations in this state.
B. An insurer not transacting new insurance business in this state but continuing
collection of premiums on and servicing of policies remaining in force as to residents of
or risks located in this state, is transacting insurance in this state for the purpose of
premium tax requirements only and is not required to have a certificate of authority
therefor. This subsection shall not apply to insurers which have withdrawn from this
state prior to January 1, 1955.
C. As to an insurance coverage on a subject of insurance not resident, located, or
expressly to be performed in this state at time of issuance, and solicited, written and
delivered outside the state, no such authority shall be required of an insurer as to
subsequent transactions in this state on account thereof.
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