§431:10C-119  Insurer's requirements. (a)  Prior to licensing an insurer to transact a motor vehicle insurancebusiness in this State, the commissioner:

(1)  Shall effect a thorough examination of theinsurer's business experience, financial soundness, and general reputation asan insurer in this and other states.  In the discretion of the commissioner,this examination may include an examination of any or all of the businessrecords of the insurer, and an audit of all or any part of the insurer's motorvehicle insurance business, each to be performed by the commissioner's staff orby independent consultants.  No license shall be issued until the commissioneris satisfied as to the business experience, financial solvency, and theeconomic soundness of the insurer;

(2)  Except for a member-owned reciprocal insurer andits wholly owned insurer subsidiaries, as specified in subsection (c), shallrequire of each insurer, and determine that satisfactory arrangements have beenmade for, the provision of a complete sales and claims service office in theState; and

(3)  Notwithstanding any other requirements of thissection or of the insurance code, may require a bond in a reasonable amount andwith deposits or sureties determined in the commissioner's discretion of anyapplicant for a license hereunder.  The commissioner may, at any time, make andenforce such a requirement of any licensed insurer or self-insurer.

(b)  The commissioner, prior to issuing acertificate of self-insurance to any person, shall require the applicant toprovide for a complete claims service office and an officer for the purpose ofservice of process in this State.

(c)  A member-owned reciprocal insurer and itswholly owned insurer subsidiaries shall make satisfactory arrangements for claimsservice and adjustment and for policy service of all policies sold or issued toconsumers in this State if:

(1)  A majority of its members are members of theUnited States military services, veterans of the United States militaryservices, current or former spouses or dependents of these persons; and

(2)  The primary purpose of the insurer is to servethese persons.

The member-owned reciprocal insurer and its whollyowned insurer subsidiaries, upon request by the commissioner, shall provide inwriting, specific information as to those arrangements.

(d)  The commissioner shall adopt rules topermit any licensed accident and health or sickness insurer to secure a licenseto engage in the business of motor vehicle insurance to provide only thosepersonal injury protection benefits defined in section 431:10C-103.5(a) andoptional major medical coverages. [L 1987, c 347, pt of §2; am L 1997, c 251,§29; am L 1998, c 275, §10; am L 2003, c 212, §83; am L 2004, c 36, §1 and c122, §41]