20-403. Service of process in an action by
someone other than the director of insurance
A. The transaction of an insurance business in this state, as provided in section
20-106, by, or on behalf of, an unauthorized nonresident insurer shall be deemed to
constitute an appointment by the insurer of the director and his successors in office as
its attorney, upon whom may be served all lawful process issued within this state in any
action or proceeding against such insurer brought by someone other than the director of
insurance and arising out of any such transaction.
B. Such service of process shall be made by delivering to and leaving with the
director two copies thereof. At the time of service the plaintiff shall pay five dollars
to the director, taxable as costs in the action. The director shall forthwith mail by
registered or certified mail one of the copies of process to the defendant at its
principal place of business as last known to the director, and shall keep a record of all
process so served.
C. Notice of service and a copy of process shall be sent by plaintiff's attorney to
defendant insurer at its last known principal place of business by registered or
certified mail. Defendant insurer's receipt, or registry receipt as to the mailing
issued by the post office where registered or certified, showing the name of the sender
and name and address of the addressee, and the affidavit of plaintiff's attorney showing
compliance with this subsection, shall be filed in the court in which the action is
pending on or before the date the defendant insurer is required to appear, or within such
further time as the court may allow. No judgment by default against the insurer may be
taken under this section until the expiration of thirty days from date of filing of the
affidavit of compliance.
D. Service of process in such an action or proceeding against an unauthorized
resident insurer shall be valid if served upon any person within this state who transacts
an insurance business in this state on behalf of such insurer. The requirements of
subsection C of this section shall likewise apply with respect to such service of
process.
E. Service of process upon such an insurer in accordance with this section shall be
as valid and effective as if served upon a defendant personally present in this state.
F. Means provided in this section for service of process upon the insurer shall not
be deemed to prevent service of process upon the insurer by any other lawful means.
G. An insurer which has been so served with process, subject to section 20-405,
shall have the right to appear in and defend the action and employ attorneys and other
persons in this state to assist in its defense thereto or settlement thereof.
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