20-217

20-217. Certificate of authority; term;
termination; delivery upon termination or revocation

A. The certificate of authority issued by the director to an insurer is evidence of
its authority to transact in this state the kind of insurance specified in the
certificate.

B. A certificate of authority remains in effect until terminated at the request of
the insurer or suspended or revoked by the director.

C. A certificate of authority remains the property of this state. Upon termination
at the request of the insurer or revocation by the director, the insurer shall
immediately deliver the certificate of authority to the director.

D. The director shall not grant the request of an insurer to terminate its
certificate of authority if the insurer has any outstanding obligations under a policy of
insurance to policyholders or claimants who are residents of this state. This subsection
does not apply if the insurer has deposited with the state treasurer securities
acceptable to the director in an amount equal to its liabilities, as computed by the
director, including its reserves as required by this title in respect to its business in
this state for the sole benefit of its policyholders and creditors who are residents of
this state. The state treasurer shall hold and administer the deposits pursuant to
chapter 3, article 3 of this title. This subsection does not apply if the insurer has
fully reinsured such outstanding obligations with a reinsurer under an agreement filed
with and approved in writing by the director pursuant to section 20-261. This subsection
does not apply when the termination of the insurer's certificate of authority is the
result of a merger or consolidation if the emerging or surviving insurer is or becomes
authorized to transact business in this state and assumes such outstanding obligations of
the terminating insurer.

E. The certificate of authority shall be suspended or revoked if the insurer fails
to pay the annual certificate of authority fee denominated a renewal fee in section
20-167 at the time provided in section 20-223.