23-986

23-986. Applicability of title 20 to fund;
exemption of other statutory provisions; insufficient assets;
insurance director duties

A. Unless otherwise provided by law, the provisions of title 20 and the rules
adopted by the director of insurance relating to the transaction of insurance apply to
the state compensation fund to the same extent as any mutual casualty insurer authorized
to write workers' compensation insurance in this state.

B. The marketing representatives of the state compensation fund shall obtain a
license from the director of insurance. The marketing representatives of the state
compensation fund may not be licensed to sell any other type of insurance other than
workers' compensation insurance.

C. If upon examination pursuant to section 20-156, or at any other time, it is the
opinion of the director of insurance that the state compensation fund is not possessed of
assets at least equal to all liabilities and required reserves together with the minimum
required basic surplus and free surplus required of a mutual casualty insurer by title
20, or that its condition is such as to render the continuance of its business hazardous
to the public or to the holders of its policies or certificates of insurance, the
director of insurance shall do both of the following:

1. Notify the manager and chairman of the board of directors of his determination.

2. Furnish the state compensation fund with a written list of the director's
recommendations to abate his determination.

D. The state compensation fund has sixty days from the date of notice within which
to comply with the recommendations of the director of insurance. If the state
compensation fund fails to comply within such time, the director of insurance shall
notify the governor, the president of the senate and the speaker of the house of
representatives of the recommendations of the director of insurance which were not
complied with by the state compensation fund.

E. The operations, transactions and affairs of the state compensation fund are
exempt from the following provisions:

1. Title 35.

2. Title 39, chapter 1, article 1.

3. Title 41, chapter 4.

4. Title 41, chapter 8, article 3.

5. Title 41, chapter 3.1.

6. Title 38, chapter 4.

7. Title 41, chapter 39.