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



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



(2)  Except for a member-owned reciprocal insurer and
its wholly owned insurer subsidiaries, as specified in subsection (c), shall
require of each insurer, and determine that satisfactory arrangements have been
made for, the provision of a complete sales and claims service office in the
State; and



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



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



(c)  A member-owned reciprocal insurer and its
wholly owned insurer subsidiaries shall make satisfactory arrangements for claims
service and adjustment and for policy service of all policies sold or issued to
consumers in this State if:



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



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



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



(d)  The commissioner shall adopt rules to
permit any licensed accident and health or sickness insurer to secure a license
to engage in the business of motor vehicle insurance to provide only those
personal injury protection benefits defined in section 431:10C-103.5(a) and
optional 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 c
122, §41]