State Codes and Statutes

Statutes > Wyoming > Title26 > Chapter3

CHAPTER 3 - AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

 

ARTICLE 1 - IN GENERAL

 

26-3-101. Certificate of authority required.

 

 

(a) No person shall act as an insurer and no insurer shalltransact insurance in this state unless authorized by a subsisting certificateof authority granted by the commissioner, except as to transactions expresslyotherwise provided in this code.

 

(b) No insurer shall solicit insurance applications or otherwisetransact insurance in another state or country, from offices or by personnellocated in this state, unless it holds a subsisting certificate of authoritygranted by the commissioner authorizing it to transact the same kinds ofinsurance in this state.

 

26-3-102. When certificate not required.

 

 

(a) A certificate of authority is not required of an insurerfor:

 

(i) Investigation, settlement or litigation of claims under itspolicies lawfully written in this state, or liquidation of its assets and liabilities,other than collection of new premiums, all resulting from its authorizedoperations in this state;

 

(ii) Transactions thereunder subsequent to issuance of a policycovering only subjects of insurance not resident, located or expressly to be performedin this state at time of issuance and lawfully solicited, written and deliveredoutside this state;

 

(iii) Transactions pursuant to surplus lines coverages lawfullywritten under chapter 11 of this code;

 

(iv) Reinsurance, except as to domestic reinsurers.

 

(b) An insurer not transacting new insurance business inWyoming but continuing collection of premiums on and servicing policiesremaining in force as to residents of or risks located in Wyoming istransacting insurance in Wyoming for the purpose of premium tax requirementsonly and is not required to have a certificate of authority. This subsectiondoes not apply to insurers which withdrew from Wyoming prior to May 21, 1955.

 

26-3-103. General qualifications for authority to transact business.

 

 

(a) To transact insurance in this state an insurer shall be incompliance with this code, and its charter powers and shall be an incorporatedstock insurer, an incorporated mutual insurer or a reciprocal insurer of thesame general type as may be formed as a domestic insurer under this code.

 

(b) No foreign insurer shall be authorized to transactinsurance or business on the mutual assessment plan, stipulated premium plan orany similar plan in this state if that insurer does not maintain reserves asrequired by chapter 6 of this code as applicable to the kinds of insurance orbusiness transacted, wherever transacted in the United States. This prohibitiondoes not apply to mutual or reciprocal insurers doing business on the cashpremium plan but providing for contingent liability of policyholders orsubscribers.

 

26-3-104. Insurers not qualified to transact business in state; creditand investigation reports.

 

 

(a) No foreign insurer owned or controlled in any manner ordegree by any government or governmental agency shall be authorized to transactinsurance in Wyoming. Membership in a mutual insurer, or subscribership in areciprocal insurer, or ownership of stock of an insurer by the alien propertycustodian or similar official of the United States, or ownership of stock orother security which does not have voting rights with respect to the insurer'smanagement, or supervision of an insurer by public authority, is not ownershipor control of the insurer for the purposes of this subsection.

 

(b) The commissioner shall not grant or continue authority totransact insurance in this state as to any insurer the management of which,after investigation or upon reliable information, he finds:

 

(i) Is incompetent or untrustworthy;

 

(ii) So lacking in insurance company managerial experience as tomake a proposed operation hazardous to the insurance-buying public; or

 

(iii) Is affiliated through ownership, control reinsurance orother insurance or business relations with any person whose business operationsare or have been marked by manipulation of assets, accounts or reinsurance, orby bad faith.

 

(c) Before granting a certificate of authority to a newdomestic insurer, the commissioner shall secure a credit and investigationreport as to the insurer's management personnel and directors from a recognizedand established independent investigation and reporting agency. Thecommissioner may secure a similar report relative to the management of anyother insurer at any time he deems advisable.

 

26-3-105. Qualification of new foreign insurers.

 

 

(a) No foreign insurer is authorized to transact insurance inWyoming if that insurer has not been issuing its own policies as an authorizedinsurer for at least two (2) years in its state or country of domicile, unlessthe insurer is otherwise qualified for a certificate of authority under thiscode and is:

 

(i) The wholly owned subsidiary of an insurer which is alreadyan authorized insurer in Wyoming;

 

(ii) The successor in interest through statutory merger orstatutory consolidation, or through bulk reinsurance of substantially all ofthe insurance risks in this state, of an authorized insurer; or

 

(iii) An insurer organized solely for the purpose of insuringagainst earthquake, flood, nuclear radiation, war or other special hazards toproperty or liability for which, in the commissioner's opinion, adequateprovision is not made by insurers already authorized in this state.

 

(b) No foreign insurer shall continue to hold a certificate ofauthority under W.S. 26-3-114 if the insurer has reinsured substantially all ofits insurance risks either prior to, contemporaneously with or after beingacquired by another insurer not holding a subsisting certificate of authorityin this state.

 

26-3-106. Conflict of names prohibited.

 

 

(a) No insurer shall be formed or authorized to transactinsurance in this state if that insurer has or uses a name which:

 

(i) Is the same as or deceptively similar to that of anotherinsurer already authorized;

 

(ii) In the case of a life insurer is deceptively similar tothat of another insurer authorized to transact insurance in this state withinthe immediately preceding ten (10) years, if life insurance policies originallyissued by the other insurer are still outstanding in this state;

 

(iii) Is the same as or deceptively similar to the name of anyforeign insurer not so authorized if the foreign insurer has within theimmediately preceding twelve (12) months signified its intention to secure anincorporation in this state under that name or to do business as a foreigninsurer in this state under that name by filing notice of intention with thecommissioner, unless the foreign insurer gives written consent to the use ofthe name or deceptively similar name; or

 

(iv) Tends to deceive or mislead as to the insurer's type oforganization.

 

(b) In case of conflict of names between two (2) insurers, or aconflict otherwise prohibited under this section, the commissioner may permit,or shall require as a condition to the issuance of an original certificate ofauthority to an applicant insurer, the insurer to use in this state a modifiedname as may reasonably be necessary to avoid the conflict.

 

26-3-107. Insurer may be authorized to transact combination of kindsof insurance; exceptions.

 

 

(a) A qualified insurer may be authorized to transact one (1)or more kinds of insurance as defined in chapter 5 of this code, except:

 

(i) A life insurer may grant annuities and may be authorized totransact disability insurance, except that the commissioner may continue toauthorize any qualified life insurer which immediately prior to January 1, 1968was lawfully authorized to transact in this state any kinds of insurance inaddition to life and disability insurances and annuity business;

 

(ii) A reciprocal insurer shall not transact life insurance;

 

(iii) A title insurer shall be a stock insurer and shall nottransact any other kind of insurance.

 

26-3-108. Capital and surplus requirements.

 

 

(a) To qualify for authority to transact any kind of insuranceas defined in chapter 5 or combination of kinds of insurance as specified inthis subsection, a foreign insurer, or a domestic stock insurer applying forits original certificate of authority, shall possess and thereafter maintain unimpairedbasic paid-in capital stock and surplus, if a stock insurer, or unimpairedbasic surplus, if a foreign mutual insurer or foreign reciprocal insurer, in anamount not less than as follows:

 

Foreign Foreign

 

Kind or Mutual Reciprocal

 

kinds of Stock Insurers Insurers Insurers

 

insurance Capital Stock Surplus Surplus Surplus

 

Life $1,000,000. $500,000. $1,500,000.

 

Disability 1,000,000. 500,000. 1,500,000. 1,500,000.

 

Life &

 

disability 1,000,000. 1,000,000. 2,000,000.

 

Property 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Casualty

 

Excluding

 

surety 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Including

 

surety 1,000,000. 1,500,000. 2,500,000. 2,500,000.

 

Marine &

 

Transport-

 

ation 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Multiple

 

line

 

(Property

 

and

 

any

 

additional

 

kind) 2,000,000. 2,000,000. 4,000,000. 4,000,000.

 

Title 500,000. 250,000.

 

(b) Capital and surplus requirements are based upon all thekinds of insurance the insurer transacts in any areas in which it operates orproposes to operate, whether or not only a portion of the kinds are to betransacted in Wyoming.

 

(c) As to surplus required for qualification to transact one(1) or more kinds of insurance and thereafter to be maintained, domestic mutualinsurers are governed by chapter 24 of this code and domestic reciprocalinsurers are governed by chapter 27 of this code.

 

(d) The commissioner may require additional capital and surplusabove the minimum capital and surplus requirements set forth in this section,or any other section of this code based upon the type, volume and nature of theinsurance business transacted.

 

26-3-109. Delayed compliance with capital and surplus requirements.

 

 

(a) A domestic or foreign insurer holding a valid certificateof authority to transact insurance in this state as of April 1, 1985, maycontinue to transact the kinds of insurance permitted by the certificate ofauthority by complying with this code and by maintaining unimpaired not lessthan the same amount of paid-in capital stock or paid-in capital stock andsurplus, if a stock insurer, or not less than the same amount of surplus, if amutual insurer, as required under the laws of this state for that authority immediatelyprior to that date, and as if the laws had continued in force.

 

(b) An insurer specified in subsection (a) of this sectionshall not be granted authority to transact any other or additional kinds ofinsurance unless it then fully complies with the capital and surplusrequirements applied to all the kinds of insurance it then proposes totransact, as provided under W.S. 26-3-108 as to new domestic insurers.

 

26-3-110. Additional kinds of insurance authorized for certaininsurers.

 

 

(a) Without additional capital or additional surplus, anauthorized insurer is also authorized:

 

(i) If a life insurer, to grant annuities;

 

(ii) If a disability insurer, to insure against congenitaldefects as defined in W.S. 26-5-106(a)(xii);

 

(iii) If a casualty insurer, to transact also disabilityinsurance;

 

(iv) If a property insurer, to include an amount and kind ofinsurance against legal liability for injury, damage or loss to the person orproperty of others, and for medical, hospital and surgical expense related tothat injury, as the commissioner deems to be reasonably incidental to insuranceof real property against fire and other perils under policies covering farmproperties, or residential properties designed for occupancy by not more than four(4) families, with or without incidental office, professional, private schoolor studio occupancy by an insured, whether or not the premium or rate chargedfor certain perils so covered is specified in the policy.

 

(b) Paragraphs (a)(iii) and (iv) of this section do not applyto domestic insurers authorized pursuant to W.S. 26-3-109(a).

 

26-3-111. Deposit required of insurers.

 

 

(a) The commissioner shall not authorize an insurer to transactinsurance in this state unless it makes and thereafter continuously maintainsin trust in this state through the commissioner, or in another state asprovided in subsection (b) of this section, for the protection of all itspolicyholders and creditors a deposit of cash or securities eligible fordeposit under W.S. 26-8-103 of a value not less than the amount applicable tothe kinds of insurance the insurer transacts as follows:

 

Minimum

 

Kind(s) of insurance Amount of deposit

 

Life---------------------------------------- $200,000.00

 

Disability---------------------------------- 100,000.00

 

Life & disability--------------------------- 200,000.00

 

Property------------------------------------ 100,000.00

 

Casualty

 

Excluding surety-------------------------- 100,000.00

 

Including surety-------------------------- 150,000.00

 

Multiple line------------------------------- 200,000.00

 

Hail-crop----------------------------------- 100,000.00

 

Title

 

Domestic insurers------------------------- 50,000.00

 

Foreign insurers-------------------------- 100,000.00

 

(b) As to foreign insurers, instead of the deposit or partthereof in this state, the commissioner shall accept the certificate in properform of the public official having supervision over insurers in any other stateto the effect that a like deposit or part thereof by the insurer is beingmaintained in public custody or control pursuant to law in the other state intrust for the protection of all its policyholders wherever located, or of allits policyholders in the United States, or all of its policyholders andcreditors in the United States. All such deposits shall be in cash orsecurities, or both, of a quality not less than those eligible for deposit inthis state under W.S. 26-8-103.

 

(c) A property insurer also writing hail-crop coverages is requiredto have only the deposit applicable to property insurance. Instead of thehail-crop deposit, a domestic mutual hail-crop insurer, upon the commissioner'sapproval, may file with the commissioner and maintain reinsurance of all riskunder all of the insurer's hail-crop policies. The reinsurer shall be qualifiedfor a certificate of authority as a stock property insurer under this code, andthe reinsurance agreement shall provide for payment by the reinsurer of onehundred percent (100%) of all losses under hail-crop policies issued by theceding insurer without assessment of policyholders of the ceding insurer.

 

(d) All deposits in this state are subject to the applicableprovisions of chapter 8 of this code.

 

(e) In addition to deposits required or maintained by foreigninsurers, the commissioner may require any foreign insurer to make and maintainin trust in this state, through the commissioner, a deposit of cash orsecurities eligible for deposit under W.S. 26-8-103, of a value not less than anamount which the commissioner specifies, for the sole protection of aninsurer's policyholders located in this state. All additional deposits aresubject to the applicable provisions of chapter 8 of this code.

 

26-3-112. Certificate of authority; application; contents ofapplication.

 

(a) An insurer shall apply to the commissioner for an originalcertificate of authority, stating under oath of the president, orvice-president or other chief officer and the secretary of the insurer, or ofthe attorney-in-fact if the insurer is a reciprocal insurer, the insurer'sname, location of its home office, or principal office in the United States ifan alien insurer, the kinds of insurance to be transacted, date of organizationor incorporation, form of organization, state or country of domicile and anyadditional information the commissioner reasonably requires. The applicationshall be accompanied by the applicable fees as provided in W.S. 26-4-101together with the following documents, as applicable:

 

(i) If a corporation, a current, complete copy of its charteror articles of incorporation currently certified by the public official withwhom the originals are on file;

 

(ii) If a domestic incorporated insurer or a mutual insurer, acurrent, complete copy of its bylaws, certified by the insurer's corporatesecretary;

 

(iii) If a reciprocal insurer, a current, complete copy of thepower of attorney of its attorney-in-fact, certified by the attorney-in-fact;

 

(iv) If a domestic reciprocal insurer, the declaration providedfor in W.S. 26-27-107(b);

 

(v) A complete copy of its financial statement as of notearlier than the December 31 immediately preceding in "convention"form, sworn to by at least two (2) executive officers of the insurer orcertified by the public insurance supervisory official of the insurer's stateof domicile or of entry into the United States if an alien insurer;

 

(vi) A copy of the report of last examination made of theinsurer as of a date within not more than the thirty-six (36) months immediatelypreceding, certified by the Wyoming insurance department or by the publicinsurance supervisory official of the insurer's state of domicile or state ofentry into the United States if an alien insurer;

 

(vii) Acceptance of the constitution of the state of Wyoming,upon a form the commissioner furnishes for that purpose;

 

(viii) Appointment of the commissioner pursuant to W.S. 26-3-121as its attorney to receive service of legal process;

 

(ix) If a foreign insurer a certificate:

 

(A) Of the public insurance supervisory official of its stateor country of domicile showing that it is authorized to transact in that stateor country the kinds of insurance proposed to be transacted in this state;

 

(B) As to deposit if to be tendered pursuant to W.S.26-3-111(b).

 

(x) If an alien insurer, a copy of the appointment andauthority of its United States manager, certified by its officer having custodyof its records;

 

(xi) If a life or disability insurer, a copy of the insurer'srate book and of each form of policy currently proposed to be issued in thisstate;

 

(xii) Designation by the insurer of its officer or representativeauthorized to appoint and remove its agents in this state.

 

26-3-113. Certificate of authority; issuance; contents; delivery;return.

 

 

(a) If the commissioner finds that the insurer meets thecertificate requirements under this code, he shall issue to the insurer aproper certificate of authority. If he finds the insurer does not meet thecertificate requirements, the commissioner shall issue his order refusing thecertificate. The commissioner shall act upon an application for certificate ofauthority within a reasonable period after its completion.

 

(b) The certificate, if issued, shall specify the kinds ofinsurance the insurer is authorized to transact in Wyoming. At the insurer'srequest the commissioner may issue a certificate of authority limited toparticular types of insurance or coverages within the scope of a kind ofinsurance as defined in chapter 5 of this code.

 

(c) Although issued and delivered to the insurer, thecertificate of authority at all times is the property of this state. Uponexpiration, suspension or termination of the certificate, the insurer shallpromptly deliver the certificate to the commissioner.

 

26-3-114. Certificate of authority; continuation; expiration;reinstatement.

 

(a) A certificate of authority issued under this code continuesin force until suspended or revoked by the commissioner or terminated at theinsurer's request, subject to continuance by the insurer each year by:

 

(i) Payment prior to March 1 of the continuation fee providedin W.S. 26-4-101;

 

(ii) Filing by the insurer of its annual statement for theimmediately preceding calendar year as required by W.S. 26-3-123; and

 

(iii) Payment by the insurer of premium taxes for the immediatelypreceding calendar year as required by W.S. 26-4-103.

 

(b) If not continued, an insurer's certificate of authorityexpires at midnight on May 31 immediately following the insurer's failure tocontinue it in force, unless earlier revoked for failure to pay taxes asprovided in W.S. 26-4-105(b). The commissioner shall promptly notify theinsurer of any impending expiration of its certificate of authority.

 

(c) The commissioner, upon the insurer's request made withinthree (3) months after expiration, may reinstate a certificate of authoritywhich the insurer has permitted to expire, after the insurer has:

 

(i) Cured all failures which resulted in the expiration; and

 

(ii) Paid the reinstatement fee specified in W.S. 26-4-101.

 

(d) If an insurer fails to renew its certificate of authoritywithin the time specified in subsection (c) of this section, anothercertificate shall be issued only after all requirements for an original certificateof authority in this state are fulfilled.

 

26-3-115. Suspension, revocation of certificate of authority;mandatory grounds; hearing required.

 

 

(a) The commissioner shall refuse to continue or shall suspendor revoke an insurer's certificate of authority if:

 

(i) That action is required by any provision of this code;

 

(ii) A foreign insurer and it no longer meets the capital andsurplus requirements specified in W.S. 26-3-108, or is otherwise unqualified;

 

(iii) A domestic insurer and it has failed to cure a capital orsurplus impairment within the time the commissioner allows under this code, oris otherwise unqualified; or

 

(iv) The insurer's certificate of authority to transactinsurance is suspended or revoked by its state of domicile, or state of entryinto the United States if an alien insurer.

 

(b) Notwithstanding W.S. 16-3-113, in case of insolvency orimpairment of required capital or surplus, or suspension or revocation byanother state, the commissioner shall refuse, suspend or revoke the certificateof authority without a prior hearing. In all other cases the commissioner shallrefuse, suspend or revoke the certificate of authority only after a hearing,unless the insurer waives the hearing in writing.

 

26-3-116. Suspension and revocation of certificate of authority;discretionary and special grounds.

 

 

(a) The commissioner may refuse to continue or may suspend orrevoke an insurer's certificate of authority if he finds after a hearing thatthe insurer has:

 

(i) Violated or failed to comply with any lawful order of thecommissioner;

 

(ii) Willfully violated or failed to comply with any lawfulregulation of the commissioner; or

 

(iii) Violated any provision of this code other than those forviolation of which suspension or revocation is mandatory.

 

(b) The commissioner shall suspend or revoke an insurer'scertificate of authority on any of the following grounds if he finds after ahearing that the insurer:

 

(i) Is in unsound condition, or in such condition or using anymethods and practices in the conduct of its business as to render its furthertransaction of insurance in this state injurious to policyholders or to thepublic;

 

(ii) With such frequency as to indicate its general businesspractice in this state has without just cause:

 

(A) Failed to pay claims arising under its policies, whetherthe claim is in favor of an insurer or is in favor of a third person withrespect to the liability of an insured to that third person;

 

(B) Delayed payment of claims; or

 

(C) Compelled insureds or claimants to accept less than theamount due them, or to employ attorneys or to bring suit against the insurer oran insured to secure full payment or settlement of claims.

 

(iii) Is affiliated with and under the same general management,or interlocking directorate, or ownership as another insurer which transactsdirect insurance in this state without having a certificate of authoritytherefor, except as permitted under this code;

 

(iv) Refuses to be examined, or if its directors, officers,employees or representatives refuse to:

 

(A) Submit to examination relative to its affairs;

 

(B) Produce its accounts, records and files for thecommissioner's examination when required; or

 

(C) Perform any legal obligation relative to the examination.

 

(v) Failed to pay any final judgment rendered against it inthis state upon any policy, bond, recognizance or undertaking issued orguaranteed by it, within thirty (30) days after the judgment became final, orwithin thirty (30) days after dismissal of an appeal before finaldetermination, whichever date is later.

 

(c) In determining whether the continued operation of anyinsurer transacting insurance business in this state is hazardous or injuriousto policyholders or the public the commissioner may consider any of thefollowing:

 

(i) Adverse findings reported in financial condition and marketconduct examination reports;

 

(ii) The National Association of Insurance Commissioners'Insurance Regulatory Information System and its related reports;

 

(iii) The ratios of commission expense, general insuranceexpense, policy benefits and reserve increases as to annual premium and netinvestment income which could lead to an impairment of capital and surplus;

 

(iv) The value, liquidity and diversity of the insurer's assetportfolio under the current economic conditions to assure the company's abilityto meet its outstanding obligations as they mature;

 

(v) The ability of any assuming reinsurer of the insurer toperform and whether the insurer's reinsurance program provides sufficientprotection for the insurer's remaining surplus after taking into account theinsurer's cash flow and the classes of business written and the financialcondition of the assuming reinsurer;

 

(vi) Whether the insurer's operating loss in the last twelve(12) month period or any shorter period of time is greater than fifty percent(50%) of the insurer's remaining surplus as regards policyholders in excess ofthe minimum required. For purposes of this paragraph, "operatingloss" shall include, but not be limited to net capital gain or loss,change in nonadmitted assets and cash dividends paid to shareholders;

 

(vii) Any affiliate's, subsidiary's or reinsurer's insolvency,threatened insolvency or delinquency in payment of its monetary or otherobligations;

 

(viii) Contingent liabilities, pledges or guaranties which eitherindividually or collectively involve a total amount which in the opinion of thecommissioner may affect the solvency of the insurer;

 

(ix) The delinquency of any "controlling person" of aninsurer in transmitting or paying net premiums to the insurer. For purposes ofthis paragraph, "controlling person" means any person who directly orindirectly has the power to direct the management, control or activities of theinsurer;

 

(x) The age of receivables and the ability to collectreceivables;

 

(xi) The failure of an insurer's management, including officers,directors, or any other person who directly or indirectly controls theoperation of the insurer, to possess and demonstrate the competence, fitnessand reputation necessary to serve the insurer in such position;

 

(xii) An insurer's management's failure to respond to inquiriesrelative to the condition of the insurer or an insurer's management'sfurnishing false and misleading information concerning an inquiry;

 

(xiii) An insurer's management's:

 

(A) Filing of any false or misleading sworn financialstatement;

 

(B) Release of false or misleading financial statements tolending institutions or to the general public; or

 

(C) Making of a false or misleading entry, or omitting an entryof material amount in the books of the insurer.

 

(xiv) An insurer's rapid growth to such an extent that it lacksadequate financial and administrative capacity to meet its obligations in atimely manner;

 

(xv) An insurer's past or foreseeable future experience of cashflow or liquidity problems.

 

(d) The standards set forth in subsection (c) of this sectionare in addition to those set forth in other laws or regulations of this stateand shall not be construed to limit any other standards.

 

(e) The commissioner, without advance notice or hearing, mayimmediately suspend the certificate of authority of any insurer as to whichproceedings for receivership, conservatorship, rehabilitation or otherdelinquency proceedings have been commenced in any state by the publicinsurance supervisory official of that state.

 

26-3-117. Suspension and revocation of certificate of authority; orderand notice of suspension.

 

 

(a) All suspensions or revocations of or refusals to continuean insurer's certificate of authority shall be by the commissioner's ordergiven to the insurer.

 

(b) Upon issuance of an order, the commissioner shallimmediately give notice thereof to the insurer's agents in this state of recordin the department and shall suspend or revoke the authority of those agents torepresent the insurer.

 

(c) The commissioner shall publish notice of any suspension,revocation or refusal to continue in a newspaper in general circulation.

 

26-3-118. Suspension, revocation of certification of authority;duration of suspension; reinstatement.

 

 

(a) Suspension of an insurer's certificate of authority shallbe for the period the commissioner specifies in the order of suspension, butnot to exceed one (1) year. During the suspension period the commissioner mayrescind or shorten the suspension by further order.

 

(b) During the suspension period the insurer shall not solicitor write any new business in this state but shall file its annual statement,pay fees, licenses and taxes as required under this code and may service itsbusiness already in force in this state as if the certificate of authority hadcontinued in full force.

 

(c) Upon expiration of the suspension period, if within thatperiod the certificate of authority has not terminated, the insurer'scertificate of authority is automatically reinstated unless the commissionerfinds that the causes of the suspension, other than a discontinued violation,have not terminated, or that the insurer is otherwise not in compliance withthe requirements of this code, and of which the commissioner shall give theinsurer notice not less than thirty (30) days in advance of expiration of thesuspension period. If not automatically reinstated, the certificate ofauthority terminates at the end of the suspension period.

 

(d) Upon reinstatement of the insurer's certificate ofauthority, the authority of its agents in this state to represent the insureralso reinstate. The commissioner shall promptly notify the insurer and itsagents in this state, of record in the department, of reinstatement. Ifpursuant to W.S. 26-3-117(c) the commissioner has published notice ofsuspension of the insurer's certificate of authority, he shall also publishnotice of reinstatement.

 

26-3-119. General corporation laws not applicable to authorizedforeign insurers.

 

Thegeneral corporation laws of this state do not apply to foreign insurers holdingcertificates of authority to transact insurance in this state.

 

26-3-120. Property insurance under 1 additional title authorized.

 

 

(a) A property insurer or multiple line insurer authorized totransact insurance in Wyoming may issue property insurance policies under itsown name or under one (1) additional "title" registered with thecommissioner.

 

(b) Upon request the commissioner shall furnish to the insurerthe form required for registration, and the insurer shall pay the registrationfee specified in W.S. 26-4-101. The registered title shall be shown on theinsurer's certificate of authority and shall remain in effect as long as theinsurer's certificate of authority is in effect, subject to earlier terminationat the insurer's request.

 

(c) The insurer may separately appoint agents in this stateunder the registered title in the same manner and on payment of the same feesas apply to appointment and continuation of agents by property insurers ingeneral.

 

(d) All business transacted by the insurer under the titleshall be included in business and transactions of the insurer to be shown byits annual statement and for all purposes under this code.

 

26-3-121. Service of process; commissioner as agent for service.

 

 

(a) Before the commissioner issues a certificate of authorityto any foreign, alien or domestic reciprocal insurer, each insurer shallappoint the commissioner, and his successors in office, as its attorney toreceive service of legal process issued against the insurer in this state. Theappointment shall be made on a form as designated and furnished by thecommissioner and shall be accompanied by a copy of a resolution of theinsurer's governing body, if an incorporated insurer, showing that the officerswho executed the appointment were authorized to do so on the insurer's behalf.

 

(b) The appointment is irrevocable, binds the insurer and anysuccessor in interest as to the insurer's assets or liabilities and remains ineffect as long as there is in force any contract of the insurer in this stateor any obligation of the insurer arising out of its transactions in this state.

 

(c) Service of process against a foreign or alien insurer shallbe made only by service thereof upon the commissioner.

 

(d) At time of application for a certificate of authority theinsurer shall file the appointment with the commissioner, together with adesignation of the person to whom process against it served upon thecommissioner is to be forwarded. The insurer may change that designation by anew filing.

 

26-3-122. Service of process; service generally.

 

(a) Service of process against an insurer for whom thecommissioner is attorney shall be made by delivering to and leaving with thecommissioner, his deputy or a person in apparent charge of his office duringthe commissioner's absence, two (2) copies of the process together with a feeas provided in W.S. 26-4-101, taxable as costs in the action.

 

(b) In case the process is issued by a justice of the peace orother inferior court, it may be directed to and served in duplicate by anofficer authorized to serve process in the city or county of the commissioner'soffice, at least fifteen (15) days before the return day thereof, and thatservice confers jurisdiction.

 

(c) Upon service the commissioner shall immediately mail byregistered mail one (1) of the copies of the process to the person currentlydesignated by the insurer to receive the process as provided in W.S.26-3-121(d).

 

(d) Service of process is sufficient if:

 

(i) Notice of that service and a copy of the process are sentwithin ten (10) days from the date of service by registered mail by plaintiffor his attorney to the defendant insurer at its last known principal place ofbusiness in the United States;

 

(ii) The defendant receives or the post office with which theletter is registered issues a receipt, showing the name of the sender of theletter and the name and address of the person to whom the letter is addressed;and

 

(iii) The affidavit of the plaintiff or his attorney showingcompliance with this section are filed with the clerk of the court in which theaction is pending, on or before the date the defendant is required to appear,or within such further time as the court allows.

 

(e) The commissioner shall keep a record of the day of serviceupon him of all legal process.

 

(f) Process served upon the commissioner with a copy forwardedas in this section provided constitutes valid and binding personal service uponthe insurer.

 

26-3-123. Annual and quarterly statement; required; form;verification; failure to file.

 

(a) Each authorized insurer, annually, on or before March 1, orwithin any extended time the commissioner grants, not to exceed thirty (30)days, shall file with the commissioner a full and true statement of itsfinancial condition, transactions and affairs as of December 31 immediatelypreceding. The statement shall be in the general form and context of, andrequire information as called for by, the form of annual statement as currentlyin general and customary use in the United States for the type of insurer andkinds of insurance to be reported upon, with any modification the commissionerrequires. The statement shall be verified by the oath of the insurer'spresident or vice-president and secretary or actuary as applicable, or if areciprocal insurer by the oath of the attorney-in-fact, or its like officers ifa corporation.

 

(b) Each authorized insurer shall file with the commissioner ona quarterly basis a statement of its financial condition for the precedingquarter. The statement shall be in the form of a quarterly statement ascurrently in general and customary use in the United States for the type ofinsurer and kinds of insurance to be reported upon, with any modification thecommissioner requires. Each quarterly statement shall be filed with thecommissioner on or before forty-five (45) days from the end of the quarterbeing reported.

 

(c) The statement of an alien insurer shall be verified by itsUnited States manager or other authorized officer and shall relate only to theinsurer's transactions and affairs in the United States unless the commissionerrequires otherwise. If the commissioner requires a statement as to an alieninsurer's affairs throughout the world, the insurer shall file the statementwith the commissioner as soon as reasonably possible.

 

(d) All annual and quarterly statements filed pursuant to thissection shall be completed pursuant to the most recent National Association ofInsurance Commissioners' accounting practices and procedures manual andaccompanied by an electronic version containing the same information as thestatement. The commissioner may specify the format of the electronic version. The commissioner may accept, for any foreign insurer required to file anystatement under this section, an electronic filing with the NationalAssociation of Insurance Commissioners meeting the requirements of this sectionas a filing with the commissioner. The commissioner may refuse to continue ormay suspend or revoke the certificate of authority of any insurer failing to fileits annual or quarterly statement when due.

 

26-3-124. Annual statement; mandatory reporting of claims againsthealth care providers; confidentiality; abstract of statistics.

 

(a) Any insurer writing coverage for health care malpractice inthis state, by March 1 of each year, shall file with the commissioner a reportof all claims against a health care provider and a report of all awards orsettlements given in cases against health care providers. The report shallcontain the following information only for the preceding calendar year:

 

(i) The number and categories of all health care providers thecompany insures for professional liability;

 

(ii) The number of claims for which a reserve has beenestablished made against covered health care providers, including those claimsin which no suit was filed;

 

(iii) The awards and settlements on health care professionalliability claims, including the costs of defense;

 

(iv) For each claim:

 

(A) Specialty coverage of the insured;

 

(B) Nature and substance of the claim;

 

(C) Age of the claimant or plaintiff;

 

(D) After final disposition of the claim, the date and mannerof disposition, whether by judgment, settlement, arbitration or otherwise, andan itemization of the amounts paid, if any, if reported separately or can bereasonably segregated or identified for:

 

(I) Medical and prescription costs;

 

(II) Economic damages;

 

(III) Noneconomic damages;

 

(IV) Defense attorneys fees, costs and expenses.

 

(E) Any additional information required by the commissioner.

 

(b) Any information provided the commissioner pursuant to thissection shall be confidential including the names of health care providers andany records pertaining thereto. The commissioner shall prepare a summary ofsuch information, in the aggregate if necessary to protect the identity of thehealth care provider or claimant, for inclusion in his annual report to thegovernor pursuant to W.S. 9-2-1014.

 

(c) The commissioner may adopt rules, regulations and reportingforms necessary to carry out the provisions of this section.

 

26-3-125. Annual statement; mandatory reporting of claims againstgovernmental entity.

 

 

(a) On or before March 15 of each year, each insurer providinginsurance to a governmental entity, as defined in W.S. 1-39-103(a)(i), shallfile with the commissioner of insurance a report of the claims made against itsinsureds which have been closed during the immediately preceding calendar year.The report shall contain, but is not limited to, the following information:

 

(i) The total number of claims filed, broken down by categoryor type of claim;

 

(ii) The total amount paid in settlement or discharge of theclaims for each type or category of claims;

 

(iii) The total amount of premiums received from insureds underthis act;

 

(iv) The total number of insureds under this act whose liabilityinsurance the insurer cancelled or refused to renew and the reasons therefor.

 

26-3-126. Annual statement; correction and publication of statements.

 

 

(a) As soon as reasonably possible after the insurer files itsannual statement with the commissioner, the commissioner shall review thestatement and require correction of any errors or omissions.

 

(b) After any corrections noted are made, the commissionershall:

 

(i) Cause each statement filed to be condensed and summarizedshowing briefly but intelligibly the capital, assets, liabilities, income,expenditures and business each insurer does within this state;

 

(ii) Include in the summary his certificate, if true, that tothe best of his knowledge and belief the insurer is in all respects incompliance with the insurance laws of this state;

 

(iii) Cause each summary and certificate to be published for six(6) successive days in a daily newspaper of general circulation within thestate, or for six (6) successive weeks in a weekly newspaper of generalcirculation, and the insurer shall pay the cost of publication upon receipt ofa statement from the newspaper.

 

(c) Insofar as is possible the commissioner shall distributethe publications equally among the newspapers located in this state.

 

26-3-127. Repealed by Laws 2000, Ch. 19, 2.

 

 

26-3-128. Repealed by Laws 2000, Ch. 19, 2.

 

26-3-129. Repealed by Laws 2000, Ch. 19, 2.

 

26-3-130. Retaliatory provisions against other states and countries.

 

 

(a) The commissioner shall impose upon any insurer, or upon theagent or representative of that insurer of any other state or any foreigncountry doing business in Wyoming the same taxes, licenses and other fees, inthe aggregate, and the same fines, penalties, deposit requirements or othermaterial requirements, obligations, prohibitions or restrictions as are imposedupon Wyoming insurers, or upon their agents or representatives, by the laws ofany other state or any political subdivision thereof, or any country or anyprovince or other political subdivision thereof.

 

(b) This section does not apply to:

 

(i) Application fees, examination fees, license fees,appointment fees and continuation fees for agents, adjusters, service representativesor consultants; or

 

(ii) Personal income taxes, ad valorem taxes on real or personalproperty nor to special purpose obligations or assessments imposed by anotherstate in connection with particular kinds of insurance other than property insurance,except that the commissioner shall consider deductions, from premium taxes orother taxes otherwise payable, allowed because of real estate or personalproperty taxes paid in determining the propriety and extent of retaliatoryaction under this section.

 

(c) For the purposes of this section:

 

(i) The domicile of an alien insurer, other than insurersformed under the laws of Canada, or a province thereof, is that state theinsurer designates in writing and files with the commissioner at time ofadmission to this state and may be that state in which:

 

(A) The insurer is first authorized to transact insurance;

 

(B) Is located the insurer's principal place of business in theUnited States; or

 

(C) Is held the insurer's largest deposit of trusteed assetsfor the protection of its policyholders in the United States.

 

(ii) The domicile of an insurer formed under the laws of Canadaor a province thereof is that province in which its head office is located.

 

(d) If the insurer does not make a designation as provided insubsection (c) of this section, its domicile is that state in which is locatedits principal place of business in the United States.

 

26-3-131. Disclosure of loss information; penalties.

 

 

(a) Any insurer writing property or casualty insurance in thisstate as defined in W.S. 26-5-104 and 26-5-106, shall provide the followinginformation to the named insured within thirty (30) days of receipt of theinsured's written request, but in no event more frequently than once in any twelve(12) month period:

 

(i) Information on claims involving the insured closed withinthe preceding two (2) years limited to the date and description of occurrenceand amount of payments, if any;

 

(ii) Information on open claims involving the insured limited tothe date and description of occurrence, amount of claim and amount of payment,if any;

 

(iii) Information on notices of occurrence involving the insuredlimited to the date and description of occurrence and amount of claim; and

 

(iv) The total amount of reserve on open claims provided noinsurer shall be required to provide information on any reserve specificallyapplicable to or identifying any claim which is or may become subject toproceedings before state or federal courts.

 

(b) An insurer which elects to cancel or nonrenew any policy ofinsurance subject to this section, for any reason other than nonpayment ofpremium, shall cause to be delivered to the insured, at the time such notice ofcancellation or nonrenewal is given, a brief statement advising the insured ofhis right to request the information required to be given under this section.

 

(c) Any insurer who violates this section is subject tomonetary penalties or license revocation or suspension as provided by W.S.26-1-107 and 26-3-116.

 

(d) Repealed By Laws 2004, Chapter 57, 3.

 

26-3-132. Commissioner's authority.

 

 

(a) For the purposes of making a determination of an insurer'sfinancial condition under this code, the commissioner may:

 

(i) Disregard any credit or amount receivable resulting fromtransactions with a reinsurer which is insolvent, impaired or otherwise subjectto a delinquency proceeding;

 

(ii) Make appropriate adjustments to asset values attributableto investments in or transactions with an insurer's parent company,subsidiaries or affiliates;

 

(iii) Refuse to recognize the stated value of accounts receivableif the ability to collect receivables is highly speculative in view of the ageof the account or the financial condition of the debtor;

 

(iv) Increase the insurer's liability in an amount equal to anycontingent liability, pledge or guarantee not otherwise included if there is asubstantial risk that the insurer will be called upon to meet the obligationundertaken within the next twelve (12) month period.

 

(b) If the commissioner determines that the continued operationof the insurer licensed to transact business in this state may be hazardous orinjurious to the policyholders or the general public, then the commissionermay, in addition to any other action permitted by this code, issue an orderrequiring the insurer to:

 

(i) Reduce the total amount of present and potential liabilityfor policy benefits by purchasing reinsurance;

 

(ii) Reduce, suspend or limit the volume of business being acceptedor renewed;

 

(iii) Reduce general insurance expenses and commission expensesby specified methods;

 

(iv) Increase the insurer's capital and surplus;

 

(v) Suspend or limit the declaration and payment of dividendsby an insurer to its stockholders or to its policyholders;

 

(vi) File reports in a form acceptable to the commissionerconcerning the market value of an insurer's assets;

 

(vii) Limit or withdraw from specified investments or discontinuespecified investment practices to the extent the commissioner deems necessary;

 

(viii) Document the adequacy of premium rates in relation to therisks insured;

 

(ix) File, in addition to regular annual statements, interimfinancial reports in the form adopted by the National Association of InsuranceCommissioners or in a format promulgated by the commissioner.

 

(c) Any insurer subject to an order under subsection (b) ofthis section may request a hearing to review that order as provided in W.S.26-2-125. Notwithstanding any other provision of law, the commissioner shallhold all hearings under this subsection privately, unless the insurer requestsa public hearing, in which case the hearing shall be public.

 

(d) This section shall not be construed to limit the powersgranted the commissioner by any other laws of this state.

 

ARTICLE 2 - INSURANCE REGULATORY INFORMATION SYSTEM

 

26-3-201. Short title.

 

Thisarticle is known and may be cited as the "Insurance Regulatory InformationSystem Act".

 

26-3-202. Immunity.

 

Membersof the National Association of Insurance Commissioners, their duly authorizedcommittees, subcommittees, and task forces, their delegates, NationalAssociation of Insurance Commissioners employees, and all others charged withthe responsibility of collecting, reviewing, analyzing and disseminating theinformation developed by the National Association of Insurance Commissioners'Insurance Regulatory Information System from annual statements filed with theNational Association of Insurance Commissioners convention blanks shall beacting as agents of the commissioner under the authority of this article and inthe absence of actual malice shall not be subject to civil liability for libel,slander or any other cause of action by virtue of their collection, review andanalysis or dissemination of the data and information collected from thefilings.

 

26-3-203. Confidentiality.

 

Allfinancial analysis ratios and examination synopsis concerning insurancecompanies that are submitted to the department by the National Association ofInsurance Commissioners' Insurance Regulatory Information System areconfidential and shall not be disclosed by the department except as authorizedby and in accordance with the provisions of W.S. 26-2-113(d).

State Codes and Statutes

Statutes > Wyoming > Title26 > Chapter3

CHAPTER 3 - AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

 

ARTICLE 1 - IN GENERAL

 

26-3-101. Certificate of authority required.

 

 

(a) No person shall act as an insurer and no insurer shalltransact insurance in this state unless authorized by a subsisting certificateof authority granted by the commissioner, except as to transactions expresslyotherwise provided in this code.

 

(b) No insurer shall solicit insurance applications or otherwisetransact insurance in another state or country, from offices or by personnellocated in this state, unless it holds a subsisting certificate of authoritygranted by the commissioner authorizing it to transact the same kinds ofinsurance in this state.

 

26-3-102. When certificate not required.

 

 

(a) A certificate of authority is not required of an insurerfor:

 

(i) Investigation, settlement or litigation of claims under itspolicies lawfully written in this state, or liquidation of its assets and liabilities,other than collection of new premiums, all resulting from its authorizedoperations in this state;

 

(ii) Transactions thereunder subsequent to issuance of a policycovering only subjects of insurance not resident, located or expressly to be performedin this state at time of issuance and lawfully solicited, written and deliveredoutside this state;

 

(iii) Transactions pursuant to surplus lines coverages lawfullywritten under chapter 11 of this code;

 

(iv) Reinsurance, except as to domestic reinsurers.

 

(b) An insurer not transacting new insurance business inWyoming but continuing collection of premiums on and servicing policiesremaining in force as to residents of or risks located in Wyoming istransacting insurance in Wyoming for the purpose of premium tax requirementsonly and is not required to have a certificate of authority. This subsectiondoes not apply to insurers which withdrew from Wyoming prior to May 21, 1955.

 

26-3-103. General qualifications for authority to transact business.

 

 

(a) To transact insurance in this state an insurer shall be incompliance with this code, and its charter powers and shall be an incorporatedstock insurer, an incorporated mutual insurer or a reciprocal insurer of thesame general type as may be formed as a domestic insurer under this code.

 

(b) No foreign insurer shall be authorized to transactinsurance or business on the mutual assessment plan, stipulated premium plan orany similar plan in this state if that insurer does not maintain reserves asrequired by chapter 6 of this code as applicable to the kinds of insurance orbusiness transacted, wherever transacted in the United States. This prohibitiondoes not apply to mutual or reciprocal insurers doing business on the cashpremium plan but providing for contingent liability of policyholders orsubscribers.

 

26-3-104. Insurers not qualified to transact business in state; creditand investigation reports.

 

 

(a) No foreign insurer owned or controlled in any manner ordegree by any government or governmental agency shall be authorized to transactinsurance in Wyoming. Membership in a mutual insurer, or subscribership in areciprocal insurer, or ownership of stock of an insurer by the alien propertycustodian or similar official of the United States, or ownership of stock orother security which does not have voting rights with respect to the insurer'smanagement, or supervision of an insurer by public authority, is not ownershipor control of the insurer for the purposes of this subsection.

 

(b) The commissioner shall not grant or continue authority totransact insurance in this state as to any insurer the management of which,after investigation or upon reliable information, he finds:

 

(i) Is incompetent or untrustworthy;

 

(ii) So lacking in insurance company managerial experience as tomake a proposed operation hazardous to the insurance-buying public; or

 

(iii) Is affiliated through ownership, control reinsurance orother insurance or business relations with any person whose business operationsare or have been marked by manipulation of assets, accounts or reinsurance, orby bad faith.

 

(c) Before granting a certificate of authority to a newdomestic insurer, the commissioner shall secure a credit and investigationreport as to the insurer's management personnel and directors from a recognizedand established independent investigation and reporting agency. Thecommissioner may secure a similar report relative to the management of anyother insurer at any time he deems advisable.

 

26-3-105. Qualification of new foreign insurers.

 

 

(a) No foreign insurer is authorized to transact insurance inWyoming if that insurer has not been issuing its own policies as an authorizedinsurer for at least two (2) years in its state or country of domicile, unlessthe insurer is otherwise qualified for a certificate of authority under thiscode and is:

 

(i) The wholly owned subsidiary of an insurer which is alreadyan authorized insurer in Wyoming;

 

(ii) The successor in interest through statutory merger orstatutory consolidation, or through bulk reinsurance of substantially all ofthe insurance risks in this state, of an authorized insurer; or

 

(iii) An insurer organized solely for the purpose of insuringagainst earthquake, flood, nuclear radiation, war or other special hazards toproperty or liability for which, in the commissioner's opinion, adequateprovision is not made by insurers already authorized in this state.

 

(b) No foreign insurer shall continue to hold a certificate ofauthority under W.S. 26-3-114 if the insurer has reinsured substantially all ofits insurance risks either prior to, contemporaneously with or after beingacquired by another insurer not holding a subsisting certificate of authorityin this state.

 

26-3-106. Conflict of names prohibited.

 

 

(a) No insurer shall be formed or authorized to transactinsurance in this state if that insurer has or uses a name which:

 

(i) Is the same as or deceptively similar to that of anotherinsurer already authorized;

 

(ii) In the case of a life insurer is deceptively similar tothat of another insurer authorized to transact insurance in this state withinthe immediately preceding ten (10) years, if life insurance policies originallyissued by the other insurer are still outstanding in this state;

 

(iii) Is the same as or deceptively similar to the name of anyforeign insurer not so authorized if the foreign insurer has within theimmediately preceding twelve (12) months signified its intention to secure anincorporation in this state under that name or to do business as a foreigninsurer in this state under that name by filing notice of intention with thecommissioner, unless the foreign insurer gives written consent to the use ofthe name or deceptively similar name; or

 

(iv) Tends to deceive or mislead as to the insurer's type oforganization.

 

(b) In case of conflict of names between two (2) insurers, or aconflict otherwise prohibited under this section, the commissioner may permit,or shall require as a condition to the issuance of an original certificate ofauthority to an applicant insurer, the insurer to use in this state a modifiedname as may reasonably be necessary to avoid the conflict.

 

26-3-107. Insurer may be authorized to transact combination of kindsof insurance; exceptions.

 

 

(a) A qualified insurer may be authorized to transact one (1)or more kinds of insurance as defined in chapter 5 of this code, except:

 

(i) A life insurer may grant annuities and may be authorized totransact disability insurance, except that the commissioner may continue toauthorize any qualified life insurer which immediately prior to January 1, 1968was lawfully authorized to transact in this state any kinds of insurance inaddition to life and disability insurances and annuity business;

 

(ii) A reciprocal insurer shall not transact life insurance;

 

(iii) A title insurer shall be a stock insurer and shall nottransact any other kind of insurance.

 

26-3-108. Capital and surplus requirements.

 

 

(a) To qualify for authority to transact any kind of insuranceas defined in chapter 5 or combination of kinds of insurance as specified inthis subsection, a foreign insurer, or a domestic stock insurer applying forits original certificate of authority, shall possess and thereafter maintain unimpairedbasic paid-in capital stock and surplus, if a stock insurer, or unimpairedbasic surplus, if a foreign mutual insurer or foreign reciprocal insurer, in anamount not less than as follows:

 

Foreign Foreign

 

Kind or Mutual Reciprocal

 

kinds of Stock Insurers Insurers Insurers

 

insurance Capital Stock Surplus Surplus Surplus

 

Life $1,000,000. $500,000. $1,500,000.

 

Disability 1,000,000. 500,000. 1,500,000. 1,500,000.

 

Life &

 

disability 1,000,000. 1,000,000. 2,000,000.

 

Property 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Casualty

 

Excluding

 

surety 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Including

 

surety 1,000,000. 1,500,000. 2,500,000. 2,500,000.

 

Marine &

 

Transport-

 

ation 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Multiple

 

line

 

(Property

 

and

 

any

 

additional

 

kind) 2,000,000. 2,000,000. 4,000,000. 4,000,000.

 

Title 500,000. 250,000.

 

(b) Capital and surplus requirements are based upon all thekinds of insurance the insurer transacts in any areas in which it operates orproposes to operate, whether or not only a portion of the kinds are to betransacted in Wyoming.

 

(c) As to surplus required for qualification to transact one(1) or more kinds of insurance and thereafter to be maintained, domestic mutualinsurers are governed by chapter 24 of this code and domestic reciprocalinsurers are governed by chapter 27 of this code.

 

(d) The commissioner may require additional capital and surplusabove the minimum capital and surplus requirements set forth in this section,or any other section of this code based upon the type, volume and nature of theinsurance business transacted.

 

26-3-109. Delayed compliance with capital and surplus requirements.

 

 

(a) A domestic or foreign insurer holding a valid certificateof authority to transact insurance in this state as of April 1, 1985, maycontinue to transact the kinds of insurance permitted by the certificate ofauthority by complying with this code and by maintaining unimpaired not lessthan the same amount of paid-in capital stock or paid-in capital stock andsurplus, if a stock insurer, or not less than the same amount of surplus, if amutual insurer, as required under the laws of this state for that authority immediatelyprior to that date, and as if the laws had continued in force.

 

(b) An insurer specified in subsection (a) of this sectionshall not be granted authority to transact any other or additional kinds ofinsurance unless it then fully complies with the capital and surplusrequirements applied to all the kinds of insurance it then proposes totransact, as provided under W.S. 26-3-108 as to new domestic insurers.

 

26-3-110. Additional kinds of insurance authorized for certaininsurers.

 

 

(a) Without additional capital or additional surplus, anauthorized insurer is also authorized:

 

(i) If a life insurer, to grant annuities;

 

(ii) If a disability insurer, to insure against congenitaldefects as defined in W.S. 26-5-106(a)(xii);

 

(iii) If a casualty insurer, to transact also disabilityinsurance;

 

(iv) If a property insurer, to include an amount and kind ofinsurance against legal liability for injury, damage or loss to the person orproperty of others, and for medical, hospital and surgical expense related tothat injury, as the commissioner deems to be reasonably incidental to insuranceof real property against fire and other perils under policies covering farmproperties, or residential properties designed for occupancy by not more than four(4) families, with or without incidental office, professional, private schoolor studio occupancy by an insured, whether or not the premium or rate chargedfor certain perils so covered is specified in the policy.

 

(b) Paragraphs (a)(iii) and (iv) of this section do not applyto domestic insurers authorized pursuant to W.S. 26-3-109(a).

 

26-3-111. Deposit required of insurers.

 

 

(a) The commissioner shall not authorize an insurer to transactinsurance in this state unless it makes and thereafter continuously maintainsin trust in this state through the commissioner, or in another state asprovided in subsection (b) of this section, for the protection of all itspolicyholders and creditors a deposit of cash or securities eligible fordeposit under W.S. 26-8-103 of a value not less than the amount applicable tothe kinds of insurance the insurer transacts as follows:

 

Minimum

 

Kind(s) of insurance Amount of deposit

 

Life---------------------------------------- $200,000.00

 

Disability---------------------------------- 100,000.00

 

Life & disability--------------------------- 200,000.00

 

Property------------------------------------ 100,000.00

 

Casualty

 

Excluding surety-------------------------- 100,000.00

 

Including surety-------------------------- 150,000.00

 

Multiple line------------------------------- 200,000.00

 

Hail-crop----------------------------------- 100,000.00

 

Title

 

Domestic insurers------------------------- 50,000.00

 

Foreign insurers-------------------------- 100,000.00

 

(b) As to foreign insurers, instead of the deposit or partthereof in this state, the commissioner shall accept the certificate in properform of the public official having supervision over insurers in any other stateto the effect that a like deposit or part thereof by the insurer is beingmaintained in public custody or control pursuant to law in the other state intrust for the protection of all its policyholders wherever located, or of allits policyholders in the United States, or all of its policyholders andcreditors in the United States. All such deposits shall be in cash orsecurities, or both, of a quality not less than those eligible for deposit inthis state under W.S. 26-8-103.

 

(c) A property insurer also writing hail-crop coverages is requiredto have only the deposit applicable to property insurance. Instead of thehail-crop deposit, a domestic mutual hail-crop insurer, upon the commissioner'sapproval, may file with the commissioner and maintain reinsurance of all riskunder all of the insurer's hail-crop policies. The reinsurer shall be qualifiedfor a certificate of authority as a stock property insurer under this code, andthe reinsurance agreement shall provide for payment by the reinsurer of onehundred percent (100%) of all losses under hail-crop policies issued by theceding insurer without assessment of policyholders of the ceding insurer.

 

(d) All deposits in this state are subject to the applicableprovisions of chapter 8 of this code.

 

(e) In addition to deposits required or maintained by foreigninsurers, the commissioner may require any foreign insurer to make and maintainin trust in this state, through the commissioner, a deposit of cash orsecurities eligible for deposit under W.S. 26-8-103, of a value not less than anamount which the commissioner specifies, for the sole protection of aninsurer's policyholders located in this state. All additional deposits aresubject to the applicable provisions of chapter 8 of this code.

 

26-3-112. Certificate of authority; application; contents ofapplication.

 

(a) An insurer shall apply to the commissioner for an originalcertificate of authority, stating under oath of the president, orvice-president or other chief officer and the secretary of the insurer, or ofthe attorney-in-fact if the insurer is a reciprocal insurer, the insurer'sname, location of its home office, or principal office in the United States ifan alien insurer, the kinds of insurance to be transacted, date of organizationor incorporation, form of organization, state or country of domicile and anyadditional information the commissioner reasonably requires. The applicationshall be accompanied by the applicable fees as provided in W.S. 26-4-101together with the following documents, as applicable:

 

(i) If a corporation, a current, complete copy of its charteror articles of incorporation currently certified by the public official withwhom the originals are on file;

 

(ii) If a domestic incorporated insurer or a mutual insurer, acurrent, complete copy of its bylaws, certified by the insurer's corporatesecretary;

 

(iii) If a reciprocal insurer, a current, complete copy of thepower of attorney of its attorney-in-fact, certified by the attorney-in-fact;

 

(iv) If a domestic reciprocal insurer, the declaration providedfor in W.S. 26-27-107(b);

 

(v) A complete copy of its financial statement as of notearlier than the December 31 immediately preceding in "convention"form, sworn to by at least two (2) executive officers of the insurer orcertified by the public insurance supervisory official of the insurer's stateof domicile or of entry into the United States if an alien insurer;

 

(vi) A copy of the report of last examination made of theinsurer as of a date within not more than the thirty-six (36) months immediatelypreceding, certified by the Wyoming insurance department or by the publicinsurance supervisory official of the insurer's state of domicile or state ofentry into the United States if an alien insurer;

 

(vii) Acceptance of the constitution of the state of Wyoming,upon a form the commissioner furnishes for that purpose;

 

(viii) Appointment of the commissioner pursuant to W.S. 26-3-121as its attorney to receive service of legal process;

 

(ix) If a foreign insurer a certificate:

 

(A) Of the public insurance supervisory official of its stateor country of domicile showing that it is authorized to transact in that stateor country the kinds of insurance proposed to be transacted in this state;

 

(B) As to deposit if to be tendered pursuant to W.S.26-3-111(b).

 

(x) If an alien insurer, a copy of the appointment andauthority of its United States manager, certified by its officer having custodyof its records;

 

(xi) If a life or disability insurer, a copy of the insurer'srate book and of each form of policy currently proposed to be issued in thisstate;

 

(xii) Designation by the insurer of its officer or representativeauthorized to appoint and remove its agents in this state.

 

26-3-113. Certificate of authority; issuance; contents; delivery;return.

 

 

(a) If the commissioner finds that the insurer meets thecertificate requirements under this code, he shall issue to the insurer aproper certificate of authority. If he finds the insurer does not meet thecertificate requirements, the commissioner shall issue his order refusing thecertificate. The commissioner shall act upon an application for certificate ofauthority within a reasonable period after its completion.

 

(b) The certificate, if issued, shall specify the kinds ofinsurance the insurer is authorized to transact in Wyoming. At the insurer'srequest the commissioner may issue a certificate of authority limited toparticular types of insurance or coverages within the scope of a kind ofinsurance as defined in chapter 5 of this code.

 

(c) Although issued and delivered to the insurer, thecertificate of authority at all times is the property of this state. Uponexpiration, suspension or termination of the certificate, the insurer shallpromptly deliver the certificate to the commissioner.

 

26-3-114. Certificate of authority; continuation; expiration;reinstatement.

 

(a) A certificate of authority issued under this code continuesin force until suspended or revoked by the commissioner or terminated at theinsurer's request, subject to continuance by the insurer each year by:

 

(i) Payment prior to March 1 of the continuation fee providedin W.S. 26-4-101;

 

(ii) Filing by the insurer of its annual statement for theimmediately preceding calendar year as required by W.S. 26-3-123; and

 

(iii) Payment by the insurer of premium taxes for the immediatelypreceding calendar year as required by W.S. 26-4-103.

 

(b) If not continued, an insurer's certificate of authorityexpires at midnight on May 31 immediately following the insurer's failure tocontinue it in force, unless earlier revoked for failure to pay taxes asprovided in W.S. 26-4-105(b). The commissioner shall promptly notify theinsurer of any impending expiration of its certificate of authority.

 

(c) The commissioner, upon the insurer's request made withinthree (3) months after expiration, may reinstate a certificate of authoritywhich the insurer has permitted to expire, after the insurer has:

 

(i) Cured all failures which resulted in the expiration; and

 

(ii) Paid the reinstatement fee specified in W.S. 26-4-101.

 

(d) If an insurer fails to renew its certificate of authoritywithin the time specified in subsection (c) of this section, anothercertificate shall be issued only after all requirements for an original certificateof authority in this state are fulfilled.

 

26-3-115. Suspension, revocation of certificate of authority;mandatory grounds; hearing required.

 

 

(a) The commissioner shall refuse to continue or shall suspendor revoke an insurer's certificate of authority if:

 

(i) That action is required by any provision of this code;

 

(ii) A foreign insurer and it no longer meets the capital andsurplus requirements specified in W.S. 26-3-108, or is otherwise unqualified;

 

(iii) A domestic insurer and it has failed to cure a capital orsurplus impairment within the time the commissioner allows under this code, oris otherwise unqualified; or

 

(iv) The insurer's certificate of authority to transactinsurance is suspended or revoked by its state of domicile, or state of entryinto the United States if an alien insurer.

 

(b) Notwithstanding W.S. 16-3-113, in case of insolvency orimpairment of required capital or surplus, or suspension or revocation byanother state, the commissioner shall refuse, suspend or revoke the certificateof authority without a prior hearing. In all other cases the commissioner shallrefuse, suspend or revoke the certificate of authority only after a hearing,unless the insurer waives the hearing in writing.

 

26-3-116. Suspension and revocation of certificate of authority;discretionary and special grounds.

 

 

(a) The commissioner may refuse to continue or may suspend orrevoke an insurer's certificate of authority if he finds after a hearing thatthe insurer has:

 

(i) Violated or failed to comply with any lawful order of thecommissioner;

 

(ii) Willfully violated or failed to comply with any lawfulregulation of the commissioner; or

 

(iii) Violated any provision of this code other than those forviolation of which suspension or revocation is mandatory.

 

(b) The commissioner shall suspend or revoke an insurer'scertificate of authority on any of the following grounds if he finds after ahearing that the insurer:

 

(i) Is in unsound condition, or in such condition or using anymethods and practices in the conduct of its business as to render its furthertransaction of insurance in this state injurious to policyholders or to thepublic;

 

(ii) With such frequency as to indicate its general businesspractice in this state has without just cause:

 

(A) Failed to pay claims arising under its policies, whetherthe claim is in favor of an insurer or is in favor of a third person withrespect to the liability of an insured to that third person;

 

(B) Delayed payment of claims; or

 

(C) Compelled insureds or claimants to accept less than theamount due them, or to employ attorneys or to bring suit against the insurer oran insured to secure full payment or settlement of claims.

 

(iii) Is affiliated with and under the same general management,or interlocking directorate, or ownership as another insurer which transactsdirect insurance in this state without having a certificate of authoritytherefor, except as permitted under this code;

 

(iv) Refuses to be examined, or if its directors, officers,employees or representatives refuse to:

 

(A) Submit to examination relative to its affairs;

 

(B) Produce its accounts, records and files for thecommissioner's examination when required; or

 

(C) Perform any legal obligation relative to the examination.

 

(v) Failed to pay any final judgment rendered against it inthis state upon any policy, bond, recognizance or undertaking issued orguaranteed by it, within thirty (30) days after the judgment became final, orwithin thirty (30) days after dismissal of an appeal before finaldetermination, whichever date is later.

 

(c) In determining whether the continued operation of anyinsurer transacting insurance business in this state is hazardous or injuriousto policyholders or the public the commissioner may consider any of thefollowing:

 

(i) Adverse findings reported in financial condition and marketconduct examination reports;

 

(ii) The National Association of Insurance Commissioners'Insurance Regulatory Information System and its related reports;

 

(iii) The ratios of commission expense, general insuranceexpense, policy benefits and reserve increases as to annual premium and netinvestment income which could lead to an impairment of capital and surplus;

 

(iv) The value, liquidity and diversity of the insurer's assetportfolio under the current economic conditions to assure the company's abilityto meet its outstanding obligations as they mature;

 

(v) The ability of any assuming reinsurer of the insurer toperform and whether the insurer's reinsurance program provides sufficientprotection for the insurer's remaining surplus after taking into account theinsurer's cash flow and the classes of business written and the financialcondition of the assuming reinsurer;

 

(vi) Whether the insurer's operating loss in the last twelve(12) month period or any shorter period of time is greater than fifty percent(50%) of the insurer's remaining surplus as regards policyholders in excess ofthe minimum required. For purposes of this paragraph, "operatingloss" shall include, but not be limited to net capital gain or loss,change in nonadmitted assets and cash dividends paid to shareholders;

 

(vii) Any affiliate's, subsidiary's or reinsurer's insolvency,threatened insolvency or delinquency in payment of its monetary or otherobligations;

 

(viii) Contingent liabilities, pledges or guaranties which eitherindividually or collectively involve a total amount which in the opinion of thecommissioner may affect the solvency of the insurer;

 

(ix) The delinquency of any "controlling person" of aninsurer in transmitting or paying net premiums to the insurer. For purposes ofthis paragraph, "controlling person" means any person who directly orindirectly has the power to direct the management, control or activities of theinsurer;

 

(x) The age of receivables and the ability to collectreceivables;

 

(xi) The failure of an insurer's management, including officers,directors, or any other person who directly or indirectly controls theoperation of the insurer, to possess and demonstrate the competence, fitnessand reputation necessary to serve the insurer in such position;

 

(xii) An insurer's management's failure to respond to inquiriesrelative to the condition of the insurer or an insurer's management'sfurnishing false and misleading information concerning an inquiry;

 

(xiii) An insurer's management's:

 

(A) Filing of any false or misleading sworn financialstatement;

 

(B) Release of false or misleading financial statements tolending institutions or to the general public; or

 

(C) Making of a false or misleading entry, or omitting an entryof material amount in the books of the insurer.

 

(xiv) An insurer's rapid growth to such an extent that it lacksadequate financial and administrative capacity to meet its obligations in atimely manner;

 

(xv) An insurer's past or foreseeable future experience of cashflow or liquidity problems.

 

(d) The standards set forth in subsection (c) of this sectionare in addition to those set forth in other laws or regulations of this stateand shall not be construed to limit any other standards.

 

(e) The commissioner, without advance notice or hearing, mayimmediately suspend the certificate of authority of any insurer as to whichproceedings for receivership, conservatorship, rehabilitation or otherdelinquency proceedings have been commenced in any state by the publicinsurance supervisory official of that state.

 

26-3-117. Suspension and revocation of certificate of authority; orderand notice of suspension.

 

 

(a) All suspensions or revocations of or refusals to continuean insurer's certificate of authority shall be by the commissioner's ordergiven to the insurer.

 

(b) Upon issuance of an order, the commissioner shallimmediately give notice thereof to the insurer's agents in this state of recordin the department and shall suspend or revoke the authority of those agents torepresent the insurer.

 

(c) The commissioner shall publish notice of any suspension,revocation or refusal to continue in a newspaper in general circulation.

 

26-3-118. Suspension, revocation of certification of authority;duration of suspension; reinstatement.

 

 

(a) Suspension of an insurer's certificate of authority shallbe for the period the commissioner specifies in the order of suspension, butnot to exceed one (1) year. During the suspension period the commissioner mayrescind or shorten the suspension by further order.

 

(b) During the suspension period the insurer shall not solicitor write any new business in this state but shall file its annual statement,pay fees, licenses and taxes as required under this code and may service itsbusiness already in force in this state as if the certificate of authority hadcontinued in full force.

 

(c) Upon expiration of the suspension period, if within thatperiod the certificate of authority has not terminated, the insurer'scertificate of authority is automatically reinstated unless the commissionerfinds that the causes of the suspension, other than a discontinued violation,have not terminated, or that the insurer is otherwise not in compliance withthe requirements of this code, and of which the commissioner shall give theinsurer notice not less than thirty (30) days in advance of expiration of thesuspension period. If not automatically reinstated, the certificate ofauthority terminates at the end of the suspension period.

 

(d) Upon reinstatement of the insurer's certificate ofauthority, the authority of its agents in this state to represent the insureralso reinstate. The commissioner shall promptly notify the insurer and itsagents in this state, of record in the department, of reinstatement. Ifpursuant to W.S. 26-3-117(c) the commissioner has published notice ofsuspension of the insurer's certificate of authority, he shall also publishnotice of reinstatement.

 

26-3-119. General corporation laws not applicable to authorizedforeign insurers.

 

Thegeneral corporation laws of this state do not apply to foreign insurers holdingcertificates of authority to transact insurance in this state.

 

26-3-120. Property insurance under 1 additional title authorized.

 

 

(a) A property insurer or multiple line insurer authorized totransact insurance in Wyoming may issue property insurance policies under itsown name or under one (1) additional "title" registered with thecommissioner.

 

(b) Upon request the commissioner shall furnish to the insurerthe form required for registration, and the insurer shall pay the registrationfee specified in W.S. 26-4-101. The registered title shall be shown on theinsurer's certificate of authority and shall remain in effect as long as theinsurer's certificate of authority is in effect, subject to earlier terminationat the insurer's request.

 

(c) The insurer may separately appoint agents in this stateunder the registered title in the same manner and on payment of the same feesas apply to appointment and continuation of agents by property insurers ingeneral.

 

(d) All business transacted by the insurer under the titleshall be included in business and transactions of the insurer to be shown byits annual statement and for all purposes under this code.

 

26-3-121. Service of process; commissioner as agent for service.

 

 

(a) Before the commissioner issues a certificate of authorityto any foreign, alien or domestic reciprocal insurer, each insurer shallappoint the commissioner, and his successors in office, as its attorney toreceive service of legal process issued against the insurer in this state. Theappointment shall be made on a form as designated and furnished by thecommissioner and shall be accompanied by a copy of a resolution of theinsurer's governing body, if an incorporated insurer, showing that the officerswho executed the appointment were authorized to do so on the insurer's behalf.

 

(b) The appointment is irrevocable, binds the insurer and anysuccessor in interest as to the insurer's assets or liabilities and remains ineffect as long as there is in force any contract of the insurer in this stateor any obligation of the insurer arising out of its transactions in this state.

 

(c) Service of process against a foreign or alien insurer shallbe made only by service thereof upon the commissioner.

 

(d) At time of application for a certificate of authority theinsurer shall file the appointment with the commissioner, together with adesignation of the person to whom process against it served upon thecommissioner is to be forwarded. The insurer may change that designation by anew filing.

 

26-3-122. Service of process; service generally.

 

(a) Service of process against an insurer for whom thecommissioner is attorney shall be made by delivering to and leaving with thecommissioner, his deputy or a person in apparent charge of his office duringthe commissioner's absence, two (2) copies of the process together with a feeas provided in W.S. 26-4-101, taxable as costs in the action.

 

(b) In case the process is issued by a justice of the peace orother inferior court, it may be directed to and served in duplicate by anofficer authorized to serve process in the city or county of the commissioner'soffice, at least fifteen (15) days before the return day thereof, and thatservice confers jurisdiction.

 

(c) Upon service the commissioner shall immediately mail byregistered mail one (1) of the copies of the process to the person currentlydesignated by the insurer to receive the process as provided in W.S.26-3-121(d).

 

(d) Service of process is sufficient if:

 

(i) Notice of that service and a copy of the process are sentwithin ten (10) days from the date of service by registered mail by plaintiffor his attorney to the defendant insurer at its last known principal place ofbusiness in the United States;

 

(ii) The defendant receives or the post office with which theletter is registered issues a receipt, showing the name of the sender of theletter and the name and address of the person to whom the letter is addressed;and

 

(iii) The affidavit of the plaintiff or his attorney showingcompliance with this section are filed with the clerk of the court in which theaction is pending, on or before the date the defendant is required to appear,or within such further time as the court allows.

 

(e) The commissioner shall keep a record of the day of serviceupon him of all legal process.

 

(f) Process served upon the commissioner with a copy forwardedas in this section provided constitutes valid and binding personal service uponthe insurer.

 

26-3-123. Annual and quarterly statement; required; form;verification; failure to file.

 

(a) Each authorized insurer, annually, on or before March 1, orwithin any extended time the commissioner grants, not to exceed thirty (30)days, shall file with the commissioner a full and true statement of itsfinancial condition, transactions and affairs as of December 31 immediatelypreceding. The statement shall be in the general form and context of, andrequire information as called for by, the form of annual statement as currentlyin general and customary use in the United States for the type of insurer andkinds of insurance to be reported upon, with any modification the commissionerrequires. The statement shall be verified by the oath of the insurer'spresident or vice-president and secretary or actuary as applicable, or if areciprocal insurer by the oath of the attorney-in-fact, or its like officers ifa corporation.

 

(b) Each authorized insurer shall file with the commissioner ona quarterly basis a statement of its financial condition for the precedingquarter. The statement shall be in the form of a quarterly statement ascurrently in general and customary use in the United States for the type ofinsurer and kinds of insurance to be reported upon, with any modification thecommissioner requires. Each quarterly statement shall be filed with thecommissioner on or before forty-five (45) days from the end of the quarterbeing reported.

 

(c) The statement of an alien insurer shall be verified by itsUnited States manager or other authorized officer and shall relate only to theinsurer's transactions and affairs in the United States unless the commissionerrequires otherwise. If the commissioner requires a statement as to an alieninsurer's affairs throughout the world, the insurer shall file the statementwith the commissioner as soon as reasonably possible.

 

(d) All annual and quarterly statements filed pursuant to thissection shall be completed pursuant to the most recent National Association ofInsurance Commissioners' accounting practices and procedures manual andaccompanied by an electronic version containing the same information as thestatement. The commissioner may specify the format of the electronic version. The commissioner may accept, for any foreign insurer required to file anystatement under this section, an electronic filing with the NationalAssociation of Insurance Commissioners meeting the requirements of this sectionas a filing with the commissioner. The commissioner may refuse to continue ormay suspend or revoke the certificate of authority of any insurer failing to fileits annual or quarterly statement when due.

 

26-3-124. Annual statement; mandatory reporting of claims againsthealth care providers; confidentiality; abstract of statistics.

 

(a) Any insurer writing coverage for health care malpractice inthis state, by March 1 of each year, shall file with the commissioner a reportof all claims against a health care provider and a report of all awards orsettlements given in cases against health care providers. The report shallcontain the following information only for the preceding calendar year:

 

(i) The number and categories of all health care providers thecompany insures for professional liability;

 

(ii) The number of claims for which a reserve has beenestablished made against covered health care providers, including those claimsin which no suit was filed;

 

(iii) The awards and settlements on health care professionalliability claims, including the costs of defense;

 

(iv) For each claim:

 

(A) Specialty coverage of the insured;

 

(B) Nature and substance of the claim;

 

(C) Age of the claimant or plaintiff;

 

(D) After final disposition of the claim, the date and mannerof disposition, whether by judgment, settlement, arbitration or otherwise, andan itemization of the amounts paid, if any, if reported separately or can bereasonably segregated or identified for:

 

(I) Medical and prescription costs;

 

(II) Economic damages;

 

(III) Noneconomic damages;

 

(IV) Defense attorneys fees, costs and expenses.

 

(E) Any additional information required by the commissioner.

 

(b) Any information provided the commissioner pursuant to thissection shall be confidential including the names of health care providers andany records pertaining thereto. The commissioner shall prepare a summary ofsuch information, in the aggregate if necessary to protect the identity of thehealth care provider or claimant, for inclusion in his annual report to thegovernor pursuant to W.S. 9-2-1014.

 

(c) The commissioner may adopt rules, regulations and reportingforms necessary to carry out the provisions of this section.

 

26-3-125. Annual statement; mandatory reporting of claims againstgovernmental entity.

 

 

(a) On or before March 15 of each year, each insurer providinginsurance to a governmental entity, as defined in W.S. 1-39-103(a)(i), shallfile with the commissioner of insurance a report of the claims made against itsinsureds which have been closed during the immediately preceding calendar year.The report shall contain, but is not limited to, the following information:

 

(i) The total number of claims filed, broken down by categoryor type of claim;

 

(ii) The total amount paid in settlement or discharge of theclaims for each type or category of claims;

 

(iii) The total amount of premiums received from insureds underthis act;

 

(iv) The total number of insureds under this act whose liabilityinsurance the insurer cancelled or refused to renew and the reasons therefor.

 

26-3-126. Annual statement; correction and publication of statements.

 

 

(a) As soon as reasonably possible after the insurer files itsannual statement with the commissioner, the commissioner shall review thestatement and require correction of any errors or omissions.

 

(b) After any corrections noted are made, the commissionershall:

 

(i) Cause each statement filed to be condensed and summarizedshowing briefly but intelligibly the capital, assets, liabilities, income,expenditures and business each insurer does within this state;

 

(ii) Include in the summary his certificate, if true, that tothe best of his knowledge and belief the insurer is in all respects incompliance with the insurance laws of this state;

 

(iii) Cause each summary and certificate to be published for six(6) successive days in a daily newspaper of general circulation within thestate, or for six (6) successive weeks in a weekly newspaper of generalcirculation, and the insurer shall pay the cost of publication upon receipt ofa statement from the newspaper.

 

(c) Insofar as is possible the commissioner shall distributethe publications equally among the newspapers located in this state.

 

26-3-127. Repealed by Laws 2000, Ch. 19, 2.

 

 

26-3-128. Repealed by Laws 2000, Ch. 19, 2.

 

26-3-129. Repealed by Laws 2000, Ch. 19, 2.

 

26-3-130. Retaliatory provisions against other states and countries.

 

 

(a) The commissioner shall impose upon any insurer, or upon theagent or representative of that insurer of any other state or any foreigncountry doing business in Wyoming the same taxes, licenses and other fees, inthe aggregate, and the same fines, penalties, deposit requirements or othermaterial requirements, obligations, prohibitions or restrictions as are imposedupon Wyoming insurers, or upon their agents or representatives, by the laws ofany other state or any political subdivision thereof, or any country or anyprovince or other political subdivision thereof.

 

(b) This section does not apply to:

 

(i) Application fees, examination fees, license fees,appointment fees and continuation fees for agents, adjusters, service representativesor consultants; or

 

(ii) Personal income taxes, ad valorem taxes on real or personalproperty nor to special purpose obligations or assessments imposed by anotherstate in connection with particular kinds of insurance other than property insurance,except that the commissioner shall consider deductions, from premium taxes orother taxes otherwise payable, allowed because of real estate or personalproperty taxes paid in determining the propriety and extent of retaliatoryaction under this section.

 

(c) For the purposes of this section:

 

(i) The domicile of an alien insurer, other than insurersformed under the laws of Canada, or a province thereof, is that state theinsurer designates in writing and files with the commissioner at time ofadmission to this state and may be that state in which:

 

(A) The insurer is first authorized to transact insurance;

 

(B) Is located the insurer's principal place of business in theUnited States; or

 

(C) Is held the insurer's largest deposit of trusteed assetsfor the protection of its policyholders in the United States.

 

(ii) The domicile of an insurer formed under the laws of Canadaor a province thereof is that province in which its head office is located.

 

(d) If the insurer does not make a designation as provided insubsection (c) of this section, its domicile is that state in which is locatedits principal place of business in the United States.

 

26-3-131. Disclosure of loss information; penalties.

 

 

(a) Any insurer writing property or casualty insurance in thisstate as defined in W.S. 26-5-104 and 26-5-106, shall provide the followinginformation to the named insured within thirty (30) days of receipt of theinsured's written request, but in no event more frequently than once in any twelve(12) month period:

 

(i) Information on claims involving the insured closed withinthe preceding two (2) years limited to the date and description of occurrenceand amount of payments, if any;

 

(ii) Information on open claims involving the insured limited tothe date and description of occurrence, amount of claim and amount of payment,if any;

 

(iii) Information on notices of occurrence involving the insuredlimited to the date and description of occurrence and amount of claim; and

 

(iv) The total amount of reserve on open claims provided noinsurer shall be required to provide information on any reserve specificallyapplicable to or identifying any claim which is or may become subject toproceedings before state or federal courts.

 

(b) An insurer which elects to cancel or nonrenew any policy ofinsurance subject to this section, for any reason other than nonpayment ofpremium, shall cause to be delivered to the insured, at the time such notice ofcancellation or nonrenewal is given, a brief statement advising the insured ofhis right to request the information required to be given under this section.

 

(c) Any insurer who violates this section is subject tomonetary penalties or license revocation or suspension as provided by W.S.26-1-107 and 26-3-116.

 

(d) Repealed By Laws 2004, Chapter 57, 3.

 

26-3-132. Commissioner's authority.

 

 

(a) For the purposes of making a determination of an insurer'sfinancial condition under this code, the commissioner may:

 

(i) Disregard any credit or amount receivable resulting fromtransactions with a reinsurer which is insolvent, impaired or otherwise subjectto a delinquency proceeding;

 

(ii) Make appropriate adjustments to asset values attributableto investments in or transactions with an insurer's parent company,subsidiaries or affiliates;

 

(iii) Refuse to recognize the stated value of accounts receivableif the ability to collect receivables is highly speculative in view of the ageof the account or the financial condition of the debtor;

 

(iv) Increase the insurer's liability in an amount equal to anycontingent liability, pledge or guarantee not otherwise included if there is asubstantial risk that the insurer will be called upon to meet the obligationundertaken within the next twelve (12) month period.

 

(b) If the commissioner determines that the continued operationof the insurer licensed to transact business in this state may be hazardous orinjurious to the policyholders or the general public, then the commissionermay, in addition to any other action permitted by this code, issue an orderrequiring the insurer to:

 

(i) Reduce the total amount of present and potential liabilityfor policy benefits by purchasing reinsurance;

 

(ii) Reduce, suspend or limit the volume of business being acceptedor renewed;

 

(iii) Reduce general insurance expenses and commission expensesby specified methods;

 

(iv) Increase the insurer's capital and surplus;

 

(v) Suspend or limit the declaration and payment of dividendsby an insurer to its stockholders or to its policyholders;

 

(vi) File reports in a form acceptable to the commissionerconcerning the market value of an insurer's assets;

 

(vii) Limit or withdraw from specified investments or discontinuespecified investment practices to the extent the commissioner deems necessary;

 

(viii) Document the adequacy of premium rates in relation to therisks insured;

 

(ix) File, in addition to regular annual statements, interimfinancial reports in the form adopted by the National Association of InsuranceCommissioners or in a format promulgated by the commissioner.

 

(c) Any insurer subject to an order under subsection (b) ofthis section may request a hearing to review that order as provided in W.S.26-2-125. Notwithstanding any other provision of law, the commissioner shallhold all hearings under this subsection privately, unless the insurer requestsa public hearing, in which case the hearing shall be public.

 

(d) This section shall not be construed to limit the powersgranted the commissioner by any other laws of this state.

 

ARTICLE 2 - INSURANCE REGULATORY INFORMATION SYSTEM

 

26-3-201. Short title.

 

Thisarticle is known and may be cited as the "Insurance Regulatory InformationSystem Act".

 

26-3-202. Immunity.

 

Membersof the National Association of Insurance Commissioners, their duly authorizedcommittees, subcommittees, and task forces, their delegates, NationalAssociation of Insurance Commissioners employees, and all others charged withthe responsibility of collecting, reviewing, analyzing and disseminating theinformation developed by the National Association of Insurance Commissioners'Insurance Regulatory Information System from annual statements filed with theNational Association of Insurance Commissioners convention blanks shall beacting as agents of the commissioner under the authority of this article and inthe absence of actual malice shall not be subject to civil liability for libel,slander or any other cause of action by virtue of their collection, review andanalysis or dissemination of the data and information collected from thefilings.

 

26-3-203. Confidentiality.

 

Allfinancial analysis ratios and examination synopsis concerning insurancecompanies that are submitted to the department by the National Association ofInsurance Commissioners' Insurance Regulatory Information System areconfidential and shall not be disclosed by the department except as authorizedby and in accordance with the provisions of W.S. 26-2-113(d).


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title26 > Chapter3

CHAPTER 3 - AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

 

ARTICLE 1 - IN GENERAL

 

26-3-101. Certificate of authority required.

 

 

(a) No person shall act as an insurer and no insurer shalltransact insurance in this state unless authorized by a subsisting certificateof authority granted by the commissioner, except as to transactions expresslyotherwise provided in this code.

 

(b) No insurer shall solicit insurance applications or otherwisetransact insurance in another state or country, from offices or by personnellocated in this state, unless it holds a subsisting certificate of authoritygranted by the commissioner authorizing it to transact the same kinds ofinsurance in this state.

 

26-3-102. When certificate not required.

 

 

(a) A certificate of authority is not required of an insurerfor:

 

(i) Investigation, settlement or litigation of claims under itspolicies lawfully written in this state, or liquidation of its assets and liabilities,other than collection of new premiums, all resulting from its authorizedoperations in this state;

 

(ii) Transactions thereunder subsequent to issuance of a policycovering only subjects of insurance not resident, located or expressly to be performedin this state at time of issuance and lawfully solicited, written and deliveredoutside this state;

 

(iii) Transactions pursuant to surplus lines coverages lawfullywritten under chapter 11 of this code;

 

(iv) Reinsurance, except as to domestic reinsurers.

 

(b) An insurer not transacting new insurance business inWyoming but continuing collection of premiums on and servicing policiesremaining in force as to residents of or risks located in Wyoming istransacting insurance in Wyoming for the purpose of premium tax requirementsonly and is not required to have a certificate of authority. This subsectiondoes not apply to insurers which withdrew from Wyoming prior to May 21, 1955.

 

26-3-103. General qualifications for authority to transact business.

 

 

(a) To transact insurance in this state an insurer shall be incompliance with this code, and its charter powers and shall be an incorporatedstock insurer, an incorporated mutual insurer or a reciprocal insurer of thesame general type as may be formed as a domestic insurer under this code.

 

(b) No foreign insurer shall be authorized to transactinsurance or business on the mutual assessment plan, stipulated premium plan orany similar plan in this state if that insurer does not maintain reserves asrequired by chapter 6 of this code as applicable to the kinds of insurance orbusiness transacted, wherever transacted in the United States. This prohibitiondoes not apply to mutual or reciprocal insurers doing business on the cashpremium plan but providing for contingent liability of policyholders orsubscribers.

 

26-3-104. Insurers not qualified to transact business in state; creditand investigation reports.

 

 

(a) No foreign insurer owned or controlled in any manner ordegree by any government or governmental agency shall be authorized to transactinsurance in Wyoming. Membership in a mutual insurer, or subscribership in areciprocal insurer, or ownership of stock of an insurer by the alien propertycustodian or similar official of the United States, or ownership of stock orother security which does not have voting rights with respect to the insurer'smanagement, or supervision of an insurer by public authority, is not ownershipor control of the insurer for the purposes of this subsection.

 

(b) The commissioner shall not grant or continue authority totransact insurance in this state as to any insurer the management of which,after investigation or upon reliable information, he finds:

 

(i) Is incompetent or untrustworthy;

 

(ii) So lacking in insurance company managerial experience as tomake a proposed operation hazardous to the insurance-buying public; or

 

(iii) Is affiliated through ownership, control reinsurance orother insurance or business relations with any person whose business operationsare or have been marked by manipulation of assets, accounts or reinsurance, orby bad faith.

 

(c) Before granting a certificate of authority to a newdomestic insurer, the commissioner shall secure a credit and investigationreport as to the insurer's management personnel and directors from a recognizedand established independent investigation and reporting agency. Thecommissioner may secure a similar report relative to the management of anyother insurer at any time he deems advisable.

 

26-3-105. Qualification of new foreign insurers.

 

 

(a) No foreign insurer is authorized to transact insurance inWyoming if that insurer has not been issuing its own policies as an authorizedinsurer for at least two (2) years in its state or country of domicile, unlessthe insurer is otherwise qualified for a certificate of authority under thiscode and is:

 

(i) The wholly owned subsidiary of an insurer which is alreadyan authorized insurer in Wyoming;

 

(ii) The successor in interest through statutory merger orstatutory consolidation, or through bulk reinsurance of substantially all ofthe insurance risks in this state, of an authorized insurer; or

 

(iii) An insurer organized solely for the purpose of insuringagainst earthquake, flood, nuclear radiation, war or other special hazards toproperty or liability for which, in the commissioner's opinion, adequateprovision is not made by insurers already authorized in this state.

 

(b) No foreign insurer shall continue to hold a certificate ofauthority under W.S. 26-3-114 if the insurer has reinsured substantially all ofits insurance risks either prior to, contemporaneously with or after beingacquired by another insurer not holding a subsisting certificate of authorityin this state.

 

26-3-106. Conflict of names prohibited.

 

 

(a) No insurer shall be formed or authorized to transactinsurance in this state if that insurer has or uses a name which:

 

(i) Is the same as or deceptively similar to that of anotherinsurer already authorized;

 

(ii) In the case of a life insurer is deceptively similar tothat of another insurer authorized to transact insurance in this state withinthe immediately preceding ten (10) years, if life insurance policies originallyissued by the other insurer are still outstanding in this state;

 

(iii) Is the same as or deceptively similar to the name of anyforeign insurer not so authorized if the foreign insurer has within theimmediately preceding twelve (12) months signified its intention to secure anincorporation in this state under that name or to do business as a foreigninsurer in this state under that name by filing notice of intention with thecommissioner, unless the foreign insurer gives written consent to the use ofthe name or deceptively similar name; or

 

(iv) Tends to deceive or mislead as to the insurer's type oforganization.

 

(b) In case of conflict of names between two (2) insurers, or aconflict otherwise prohibited under this section, the commissioner may permit,or shall require as a condition to the issuance of an original certificate ofauthority to an applicant insurer, the insurer to use in this state a modifiedname as may reasonably be necessary to avoid the conflict.

 

26-3-107. Insurer may be authorized to transact combination of kindsof insurance; exceptions.

 

 

(a) A qualified insurer may be authorized to transact one (1)or more kinds of insurance as defined in chapter 5 of this code, except:

 

(i) A life insurer may grant annuities and may be authorized totransact disability insurance, except that the commissioner may continue toauthorize any qualified life insurer which immediately prior to January 1, 1968was lawfully authorized to transact in this state any kinds of insurance inaddition to life and disability insurances and annuity business;

 

(ii) A reciprocal insurer shall not transact life insurance;

 

(iii) A title insurer shall be a stock insurer and shall nottransact any other kind of insurance.

 

26-3-108. Capital and surplus requirements.

 

 

(a) To qualify for authority to transact any kind of insuranceas defined in chapter 5 or combination of kinds of insurance as specified inthis subsection, a foreign insurer, or a domestic stock insurer applying forits original certificate of authority, shall possess and thereafter maintain unimpairedbasic paid-in capital stock and surplus, if a stock insurer, or unimpairedbasic surplus, if a foreign mutual insurer or foreign reciprocal insurer, in anamount not less than as follows:

 

Foreign Foreign

 

Kind or Mutual Reciprocal

 

kinds of Stock Insurers Insurers Insurers

 

insurance Capital Stock Surplus Surplus Surplus

 

Life $1,000,000. $500,000. $1,500,000.

 

Disability 1,000,000. 500,000. 1,500,000. 1,500,000.

 

Life &

 

disability 1,000,000. 1,000,000. 2,000,000.

 

Property 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Casualty

 

Excluding

 

surety 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Including

 

surety 1,000,000. 1,500,000. 2,500,000. 2,500,000.

 

Marine &

 

Transport-

 

ation 1,000,000. 1,000,000. 2,000,000. 2,000,000.

 

Multiple

 

line

 

(Property

 

and

 

any

 

additional

 

kind) 2,000,000. 2,000,000. 4,000,000. 4,000,000.

 

Title 500,000. 250,000.

 

(b) Capital and surplus requirements are based upon all thekinds of insurance the insurer transacts in any areas in which it operates orproposes to operate, whether or not only a portion of the kinds are to betransacted in Wyoming.

 

(c) As to surplus required for qualification to transact one(1) or more kinds of insurance and thereafter to be maintained, domestic mutualinsurers are governed by chapter 24 of this code and domestic reciprocalinsurers are governed by chapter 27 of this code.

 

(d) The commissioner may require additional capital and surplusabove the minimum capital and surplus requirements set forth in this section,or any other section of this code based upon the type, volume and nature of theinsurance business transacted.

 

26-3-109. Delayed compliance with capital and surplus requirements.

 

 

(a) A domestic or foreign insurer holding a valid certificateof authority to transact insurance in this state as of April 1, 1985, maycontinue to transact the kinds of insurance permitted by the certificate ofauthority by complying with this code and by maintaining unimpaired not lessthan the same amount of paid-in capital stock or paid-in capital stock andsurplus, if a stock insurer, or not less than the same amount of surplus, if amutual insurer, as required under the laws of this state for that authority immediatelyprior to that date, and as if the laws had continued in force.

 

(b) An insurer specified in subsection (a) of this sectionshall not be granted authority to transact any other or additional kinds ofinsurance unless it then fully complies with the capital and surplusrequirements applied to all the kinds of insurance it then proposes totransact, as provided under W.S. 26-3-108 as to new domestic insurers.

 

26-3-110. Additional kinds of insurance authorized for certaininsurers.

 

 

(a) Without additional capital or additional surplus, anauthorized insurer is also authorized:

 

(i) If a life insurer, to grant annuities;

 

(ii) If a disability insurer, to insure against congenitaldefects as defined in W.S. 26-5-106(a)(xii);

 

(iii) If a casualty insurer, to transact also disabilityinsurance;

 

(iv) If a property insurer, to include an amount and kind ofinsurance against legal liability for injury, damage or loss to the person orproperty of others, and for medical, hospital and surgical expense related tothat injury, as the commissioner deems to be reasonably incidental to insuranceof real property against fire and other perils under policies covering farmproperties, or residential properties designed for occupancy by not more than four(4) families, with or without incidental office, professional, private schoolor studio occupancy by an insured, whether or not the premium or rate chargedfor certain perils so covered is specified in the policy.

 

(b) Paragraphs (a)(iii) and (iv) of this section do not applyto domestic insurers authorized pursuant to W.S. 26-3-109(a).

 

26-3-111. Deposit required of insurers.

 

 

(a) The commissioner shall not authorize an insurer to transactinsurance in this state unless it makes and thereafter continuously maintainsin trust in this state through the commissioner, or in another state asprovided in subsection (b) of this section, for the protection of all itspolicyholders and creditors a deposit of cash or securities eligible fordeposit under W.S. 26-8-103 of a value not less than the amount applicable tothe kinds of insurance the insurer transacts as follows:

 

Minimum

 

Kind(s) of insurance Amount of deposit

 

Life---------------------------------------- $200,000.00

 

Disability---------------------------------- 100,000.00

 

Life & disability--------------------------- 200,000.00

 

Property------------------------------------ 100,000.00

 

Casualty

 

Excluding surety-------------------------- 100,000.00

 

Including surety-------------------------- 150,000.00

 

Multiple line------------------------------- 200,000.00

 

Hail-crop----------------------------------- 100,000.00

 

Title

 

Domestic insurers------------------------- 50,000.00

 

Foreign insurers-------------------------- 100,000.00

 

(b) As to foreign insurers, instead of the deposit or partthereof in this state, the commissioner shall accept the certificate in properform of the public official having supervision over insurers in any other stateto the effect that a like deposit or part thereof by the insurer is beingmaintained in public custody or control pursuant to law in the other state intrust for the protection of all its policyholders wherever located, or of allits policyholders in the United States, or all of its policyholders andcreditors in the United States. All such deposits shall be in cash orsecurities, or both, of a quality not less than those eligible for deposit inthis state under W.S. 26-8-103.

 

(c) A property insurer also writing hail-crop coverages is requiredto have only the deposit applicable to property insurance. Instead of thehail-crop deposit, a domestic mutual hail-crop insurer, upon the commissioner'sapproval, may file with the commissioner and maintain reinsurance of all riskunder all of the insurer's hail-crop policies. The reinsurer shall be qualifiedfor a certificate of authority as a stock property insurer under this code, andthe reinsurance agreement shall provide for payment by the reinsurer of onehundred percent (100%) of all losses under hail-crop policies issued by theceding insurer without assessment of policyholders of the ceding insurer.

 

(d) All deposits in this state are subject to the applicableprovisions of chapter 8 of this code.

 

(e) In addition to deposits required or maintained by foreigninsurers, the commissioner may require any foreign insurer to make and maintainin trust in this state, through the commissioner, a deposit of cash orsecurities eligible for deposit under W.S. 26-8-103, of a value not less than anamount which the commissioner specifies, for the sole protection of aninsurer's policyholders located in this state. All additional deposits aresubject to the applicable provisions of chapter 8 of this code.

 

26-3-112. Certificate of authority; application; contents ofapplication.

 

(a) An insurer shall apply to the commissioner for an originalcertificate of authority, stating under oath of the president, orvice-president or other chief officer and the secretary of the insurer, or ofthe attorney-in-fact if the insurer is a reciprocal insurer, the insurer'sname, location of its home office, or principal office in the United States ifan alien insurer, the kinds of insurance to be transacted, date of organizationor incorporation, form of organization, state or country of domicile and anyadditional information the commissioner reasonably requires. The applicationshall be accompanied by the applicable fees as provided in W.S. 26-4-101together with the following documents, as applicable:

 

(i) If a corporation, a current, complete copy of its charteror articles of incorporation currently certified by the public official withwhom the originals are on file;

 

(ii) If a domestic incorporated insurer or a mutual insurer, acurrent, complete copy of its bylaws, certified by the insurer's corporatesecretary;

 

(iii) If a reciprocal insurer, a current, complete copy of thepower of attorney of its attorney-in-fact, certified by the attorney-in-fact;

 

(iv) If a domestic reciprocal insurer, the declaration providedfor in W.S. 26-27-107(b);

 

(v) A complete copy of its financial statement as of notearlier than the December 31 immediately preceding in "convention"form, sworn to by at least two (2) executive officers of the insurer orcertified by the public insurance supervisory official of the insurer's stateof domicile or of entry into the United States if an alien insurer;

 

(vi) A copy of the report of last examination made of theinsurer as of a date within not more than the thirty-six (36) months immediatelypreceding, certified by the Wyoming insurance department or by the publicinsurance supervisory official of the insurer's state of domicile or state ofentry into the United States if an alien insurer;

 

(vii) Acceptance of the constitution of the state of Wyoming,upon a form the commissioner furnishes for that purpose;

 

(viii) Appointment of the commissioner pursuant to W.S. 26-3-121as its attorney to receive service of legal process;

 

(ix) If a foreign insurer a certificate:

 

(A) Of the public insurance supervisory official of its stateor country of domicile showing that it is authorized to transact in that stateor country the kinds of insurance proposed to be transacted in this state;

 

(B) As to deposit if to be tendered pursuant to W.S.26-3-111(b).

 

(x) If an alien insurer, a copy of the appointment andauthority of its United States manager, certified by its officer having custodyof its records;

 

(xi) If a life or disability insurer, a copy of the insurer'srate book and of each form of policy currently proposed to be issued in thisstate;

 

(xii) Designation by the insurer of its officer or representativeauthorized to appoint and remove its agents in this state.

 

26-3-113. Certificate of authority; issuance; contents; delivery;return.

 

 

(a) If the commissioner finds that the insurer meets thecertificate requirements under this code, he shall issue to the insurer aproper certificate of authority. If he finds the insurer does not meet thecertificate requirements, the commissioner shall issue his order refusing thecertificate. The commissioner shall act upon an application for certificate ofauthority within a reasonable period after its completion.

 

(b) The certificate, if issued, shall specify the kinds ofinsurance the insurer is authorized to transact in Wyoming. At the insurer'srequest the commissioner may issue a certificate of authority limited toparticular types of insurance or coverages within the scope of a kind ofinsurance as defined in chapter 5 of this code.

 

(c) Although issued and delivered to the insurer, thecertificate of authority at all times is the property of this state. Uponexpiration, suspension or termination of the certificate, the insurer shallpromptly deliver the certificate to the commissioner.

 

26-3-114. Certificate of authority; continuation; expiration;reinstatement.

 

(a) A certificate of authority issued under this code continuesin force until suspended or revoked by the commissioner or terminated at theinsurer's request, subject to continuance by the insurer each year by:

 

(i) Payment prior to March 1 of the continuation fee providedin W.S. 26-4-101;

 

(ii) Filing by the insurer of its annual statement for theimmediately preceding calendar year as required by W.S. 26-3-123; and

 

(iii) Payment by the insurer of premium taxes for the immediatelypreceding calendar year as required by W.S. 26-4-103.

 

(b) If not continued, an insurer's certificate of authorityexpires at midnight on May 31 immediately following the insurer's failure tocontinue it in force, unless earlier revoked for failure to pay taxes asprovided in W.S. 26-4-105(b). The commissioner shall promptly notify theinsurer of any impending expiration of its certificate of authority.

 

(c) The commissioner, upon the insurer's request made withinthree (3) months after expiration, may reinstate a certificate of authoritywhich the insurer has permitted to expire, after the insurer has:

 

(i) Cured all failures which resulted in the expiration; and

 

(ii) Paid the reinstatement fee specified in W.S. 26-4-101.

 

(d) If an insurer fails to renew its certificate of authoritywithin the time specified in subsection (c) of this section, anothercertificate shall be issued only after all requirements for an original certificateof authority in this state are fulfilled.

 

26-3-115. Suspension, revocation of certificate of authority;mandatory grounds; hearing required.

 

 

(a) The commissioner shall refuse to continue or shall suspendor revoke an insurer's certificate of authority if:

 

(i) That action is required by any provision of this code;

 

(ii) A foreign insurer and it no longer meets the capital andsurplus requirements specified in W.S. 26-3-108, or is otherwise unqualified;

 

(iii) A domestic insurer and it has failed to cure a capital orsurplus impairment within the time the commissioner allows under this code, oris otherwise unqualified; or

 

(iv) The insurer's certificate of authority to transactinsurance is suspended or revoked by its state of domicile, or state of entryinto the United States if an alien insurer.

 

(b) Notwithstanding W.S. 16-3-113, in case of insolvency orimpairment of required capital or surplus, or suspension or revocation byanother state, the commissioner shall refuse, suspend or revoke the certificateof authority without a prior hearing. In all other cases the commissioner shallrefuse, suspend or revoke the certificate of authority only after a hearing,unless the insurer waives the hearing in writing.

 

26-3-116. Suspension and revocation of certificate of authority;discretionary and special grounds.

 

 

(a) The commissioner may refuse to continue or may suspend orrevoke an insurer's certificate of authority if he finds after a hearing thatthe insurer has:

 

(i) Violated or failed to comply with any lawful order of thecommissioner;

 

(ii) Willfully violated or failed to comply with any lawfulregulation of the commissioner; or

 

(iii) Violated any provision of this code other than those forviolation of which suspension or revocation is mandatory.

 

(b) The commissioner shall suspend or revoke an insurer'scertificate of authority on any of the following grounds if he finds after ahearing that the insurer:

 

(i) Is in unsound condition, or in such condition or using anymethods and practices in the conduct of its business as to render its furthertransaction of insurance in this state injurious to policyholders or to thepublic;

 

(ii) With such frequency as to indicate its general businesspractice in this state has without just cause:

 

(A) Failed to pay claims arising under its policies, whetherthe claim is in favor of an insurer or is in favor of a third person withrespect to the liability of an insured to that third person;

 

(B) Delayed payment of claims; or

 

(C) Compelled insureds or claimants to accept less than theamount due them, or to employ attorneys or to bring suit against the insurer oran insured to secure full payment or settlement of claims.

 

(iii) Is affiliated with and under the same general management,or interlocking directorate, or ownership as another insurer which transactsdirect insurance in this state without having a certificate of authoritytherefor, except as permitted under this code;

 

(iv) Refuses to be examined, or if its directors, officers,employees or representatives refuse to:

 

(A) Submit to examination relative to its affairs;

 

(B) Produce its accounts, records and files for thecommissioner's examination when required; or

 

(C) Perform any legal obligation relative to the examination.

 

(v) Failed to pay any final judgment rendered against it inthis state upon any policy, bond, recognizance or undertaking issued orguaranteed by it, within thirty (30) days after the judgment became final, orwithin thirty (30) days after dismissal of an appeal before finaldetermination, whichever date is later.

 

(c) In determining whether the continued operation of anyinsurer transacting insurance business in this state is hazardous or injuriousto policyholders or the public the commissioner may consider any of thefollowing:

 

(i) Adverse findings reported in financial condition and marketconduct examination reports;

 

(ii) The National Association of Insurance Commissioners'Insurance Regulatory Information System and its related reports;

 

(iii) The ratios of commission expense, general insuranceexpense, policy benefits and reserve increases as to annual premium and netinvestment income which could lead to an impairment of capital and surplus;

 

(iv) The value, liquidity and diversity of the insurer's assetportfolio under the current economic conditions to assure the company's abilityto meet its outstanding obligations as they mature;

 

(v) The ability of any assuming reinsurer of the insurer toperform and whether the insurer's reinsurance program provides sufficientprotection for the insurer's remaining surplus after taking into account theinsurer's cash flow and the classes of business written and the financialcondition of the assuming reinsurer;

 

(vi) Whether the insurer's operating loss in the last twelve(12) month period or any shorter period of time is greater than fifty percent(50%) of the insurer's remaining surplus as regards policyholders in excess ofthe minimum required. For purposes of this paragraph, "operatingloss" shall include, but not be limited to net capital gain or loss,change in nonadmitted assets and cash dividends paid to shareholders;

 

(vii) Any affiliate's, subsidiary's or reinsurer's insolvency,threatened insolvency or delinquency in payment of its monetary or otherobligations;

 

(viii) Contingent liabilities, pledges or guaranties which eitherindividually or collectively involve a total amount which in the opinion of thecommissioner may affect the solvency of the insurer;

 

(ix) The delinquency of any "controlling person" of aninsurer in transmitting or paying net premiums to the insurer. For purposes ofthis paragraph, "controlling person" means any person who directly orindirectly has the power to direct the management, control or activities of theinsurer;

 

(x) The age of receivables and the ability to collectreceivables;

 

(xi) The failure of an insurer's management, including officers,directors, or any other person who directly or indirectly controls theoperation of the insurer, to possess and demonstrate the competence, fitnessand reputation necessary to serve the insurer in such position;

 

(xii) An insurer's management's failure to respond to inquiriesrelative to the condition of the insurer or an insurer's management'sfurnishing false and misleading information concerning an inquiry;

 

(xiii) An insurer's management's:

 

(A) Filing of any false or misleading sworn financialstatement;

 

(B) Release of false or misleading financial statements tolending institutions or to the general public; or

 

(C) Making of a false or misleading entry, or omitting an entryof material amount in the books of the insurer.

 

(xiv) An insurer's rapid growth to such an extent that it lacksadequate financial and administrative capacity to meet its obligations in atimely manner;

 

(xv) An insurer's past or foreseeable future experience of cashflow or liquidity problems.

 

(d) The standards set forth in subsection (c) of this sectionare in addition to those set forth in other laws or regulations of this stateand shall not be construed to limit any other standards.

 

(e) The commissioner, without advance notice or hearing, mayimmediately suspend the certificate of authority of any insurer as to whichproceedings for receivership, conservatorship, rehabilitation or otherdelinquency proceedings have been commenced in any state by the publicinsurance supervisory official of that state.

 

26-3-117. Suspension and revocation of certificate of authority; orderand notice of suspension.

 

 

(a) All suspensions or revocations of or refusals to continuean insurer's certificate of authority shall be by the commissioner's ordergiven to the insurer.

 

(b) Upon issuance of an order, the commissioner shallimmediately give notice thereof to the insurer's agents in this state of recordin the department and shall suspend or revoke the authority of those agents torepresent the insurer.

 

(c) The commissioner shall publish notice of any suspension,revocation or refusal to continue in a newspaper in general circulation.

 

26-3-118. Suspension, revocation of certification of authority;duration of suspension; reinstatement.

 

 

(a) Suspension of an insurer's certificate of authority shallbe for the period the commissioner specifies in the order of suspension, butnot to exceed one (1) year. During the suspension period the commissioner mayrescind or shorten the suspension by further order.

 

(b) During the suspension period the insurer shall not solicitor write any new business in this state but shall file its annual statement,pay fees, licenses and taxes as required under this code and may service itsbusiness already in force in this state as if the certificate of authority hadcontinued in full force.

 

(c) Upon expiration of the suspension period, if within thatperiod the certificate of authority has not terminated, the insurer'scertificate of authority is automatically reinstated unless the commissionerfinds that the causes of the suspension, other than a discontinued violation,have not terminated, or that the insurer is otherwise not in compliance withthe requirements of this code, and of which the commissioner shall give theinsurer notice not less than thirty (30) days in advance of expiration of thesuspension period. If not automatically reinstated, the certificate ofauthority terminates at the end of the suspension period.

 

(d) Upon reinstatement of the insurer's certificate ofauthority, the authority of its agents in this state to represent the insureralso reinstate. The commissioner shall promptly notify the insurer and itsagents in this state, of record in the department, of reinstatement. Ifpursuant to W.S. 26-3-117(c) the commissioner has published notice ofsuspension of the insurer's certificate of authority, he shall also publishnotice of reinstatement.

 

26-3-119. General corporation laws not applicable to authorizedforeign insurers.

 

Thegeneral corporation laws of this state do not apply to foreign insurers holdingcertificates of authority to transact insurance in this state.

 

26-3-120. Property insurance under 1 additional title authorized.

 

 

(a) A property insurer or multiple line insurer authorized totransact insurance in Wyoming may issue property insurance policies under itsown name or under one (1) additional "title" registered with thecommissioner.

 

(b) Upon request the commissioner shall furnish to the insurerthe form required for registration, and the insurer shall pay the registrationfee specified in W.S. 26-4-101. The registered title shall be shown on theinsurer's certificate of authority and shall remain in effect as long as theinsurer's certificate of authority is in effect, subject to earlier terminationat the insurer's request.

 

(c) The insurer may separately appoint agents in this stateunder the registered title in the same manner and on payment of the same feesas apply to appointment and continuation of agents by property insurers ingeneral.

 

(d) All business transacted by the insurer under the titleshall be included in business and transactions of the insurer to be shown byits annual statement and for all purposes under this code.

 

26-3-121. Service of process; commissioner as agent for service.

 

 

(a) Before the commissioner issues a certificate of authorityto any foreign, alien or domestic reciprocal insurer, each insurer shallappoint the commissioner, and his successors in office, as its attorney toreceive service of legal process issued against the insurer in this state. Theappointment shall be made on a form as designated and furnished by thecommissioner and shall be accompanied by a copy of a resolution of theinsurer's governing body, if an incorporated insurer, showing that the officerswho executed the appointment were authorized to do so on the insurer's behalf.

 

(b) The appointment is irrevocable, binds the insurer and anysuccessor in interest as to the insurer's assets or liabilities and remains ineffect as long as there is in force any contract of the insurer in this stateor any obligation of the insurer arising out of its transactions in this state.

 

(c) Service of process against a foreign or alien insurer shallbe made only by service thereof upon the commissioner.

 

(d) At time of application for a certificate of authority theinsurer shall file the appointment with the commissioner, together with adesignation of the person to whom process against it served upon thecommissioner is to be forwarded. The insurer may change that designation by anew filing.

 

26-3-122. Service of process; service generally.

 

(a) Service of process against an insurer for whom thecommissioner is attorney shall be made by delivering to and leaving with thecommissioner, his deputy or a person in apparent charge of his office duringthe commissioner's absence, two (2) copies of the process together with a feeas provided in W.S. 26-4-101, taxable as costs in the action.

 

(b) In case the process is issued by a justice of the peace orother inferior court, it may be directed to and served in duplicate by anofficer authorized to serve process in the city or county of the commissioner'soffice, at least fifteen (15) days before the return day thereof, and thatservice confers jurisdiction.

 

(c) Upon service the commissioner shall immediately mail byregistered mail one (1) of the copies of the process to the person currentlydesignated by the insurer to receive the process as provided in W.S.26-3-121(d).

 

(d) Service of process is sufficient if:

 

(i) Notice of that service and a copy of the process are sentwithin ten (10) days from the date of service by registered mail by plaintiffor his attorney to the defendant insurer at its last known principal place ofbusiness in the United States;

 

(ii) The defendant receives or the post office with which theletter is registered issues a receipt, showing the name of the sender of theletter and the name and address of the person to whom the letter is addressed;and

 

(iii) The affidavit of the plaintiff or his attorney showingcompliance with this section are filed with the clerk of the court in which theaction is pending, on or before the date the defendant is required to appear,or within such further time as the court allows.

 

(e) The commissioner shall keep a record of the day of serviceupon him of all legal process.

 

(f) Process served upon the commissioner with a copy forwardedas in this section provided constitutes valid and binding personal service uponthe insurer.

 

26-3-123. Annual and quarterly statement; required; form;verification; failure to file.

 

(a) Each authorized insurer, annually, on or before March 1, orwithin any extended time the commissioner grants, not to exceed thirty (30)days, shall file with the commissioner a full and true statement of itsfinancial condition, transactions and affairs as of December 31 immediatelypreceding. The statement shall be in the general form and context of, andrequire information as called for by, the form of annual statement as currentlyin general and customary use in the United States for the type of insurer andkinds of insurance to be reported upon, with any modification the commissionerrequires. The statement shall be verified by the oath of the insurer'spresident or vice-president and secretary or actuary as applicable, or if areciprocal insurer by the oath of the attorney-in-fact, or its like officers ifa corporation.

 

(b) Each authorized insurer shall file with the commissioner ona quarterly basis a statement of its financial condition for the precedingquarter. The statement shall be in the form of a quarterly statement ascurrently in general and customary use in the United States for the type ofinsurer and kinds of insurance to be reported upon, with any modification thecommissioner requires. Each quarterly statement shall be filed with thecommissioner on or before forty-five (45) days from the end of the quarterbeing reported.

 

(c) The statement of an alien insurer shall be verified by itsUnited States manager or other authorized officer and shall relate only to theinsurer's transactions and affairs in the United States unless the commissionerrequires otherwise. If the commissioner requires a statement as to an alieninsurer's affairs throughout the world, the insurer shall file the statementwith the commissioner as soon as reasonably possible.

 

(d) All annual and quarterly statements filed pursuant to thissection shall be completed pursuant to the most recent National Association ofInsurance Commissioners' accounting practices and procedures manual andaccompanied by an electronic version containing the same information as thestatement. The commissioner may specify the format of the electronic version. The commissioner may accept, for any foreign insurer required to file anystatement under this section, an electronic filing with the NationalAssociation of Insurance Commissioners meeting the requirements of this sectionas a filing with the commissioner. The commissioner may refuse to continue ormay suspend or revoke the certificate of authority of any insurer failing to fileits annual or quarterly statement when due.

 

26-3-124. Annual statement; mandatory reporting of claims againsthealth care providers; confidentiality; abstract of statistics.

 

(a) Any insurer writing coverage for health care malpractice inthis state, by March 1 of each year, shall file with the commissioner a reportof all claims against a health care provider and a report of all awards orsettlements given in cases against health care providers. The report shallcontain the following information only for the preceding calendar year:

 

(i) The number and categories of all health care providers thecompany insures for professional liability;

 

(ii) The number of claims for which a reserve has beenestablished made against covered health care providers, including those claimsin which no suit was filed;

 

(iii) The awards and settlements on health care professionalliability claims, including the costs of defense;

 

(iv) For each claim:

 

(A) Specialty coverage of the insured;

 

(B) Nature and substance of the claim;

 

(C) Age of the claimant or plaintiff;

 

(D) After final disposition of the claim, the date and mannerof disposition, whether by judgment, settlement, arbitration or otherwise, andan itemization of the amounts paid, if any, if reported separately or can bereasonably segregated or identified for:

 

(I) Medical and prescription costs;

 

(II) Economic damages;

 

(III) Noneconomic damages;

 

(IV) Defense attorneys fees, costs and expenses.

 

(E) Any additional information required by the commissioner.

 

(b) Any information provided the commissioner pursuant to thissection shall be confidential including the names of health care providers andany records pertaining thereto. The commissioner shall prepare a summary ofsuch information, in the aggregate if necessary to protect the identity of thehealth care provider or claimant, for inclusion in his annual report to thegovernor pursuant to W.S. 9-2-1014.

 

(c) The commissioner may adopt rules, regulations and reportingforms necessary to carry out the provisions of this section.

 

26-3-125. Annual statement; mandatory reporting of claims againstgovernmental entity.

 

 

(a) On or before March 15 of each year, each insurer providinginsurance to a governmental entity, as defined in W.S. 1-39-103(a)(i), shallfile with the commissioner of insurance a report of the claims made against itsinsureds which have been closed during the immediately preceding calendar year.The report shall contain, but is not limited to, the following information:

 

(i) The total number of claims filed, broken down by categoryor type of claim;

 

(ii) The total amount paid in settlement or discharge of theclaims for each type or category of claims;

 

(iii) The total amount of premiums received from insureds underthis act;

 

(iv) The total number of insureds under this act whose liabilityinsurance the insurer cancelled or refused to renew and the reasons therefor.

 

26-3-126. Annual statement; correction and publication of statements.

 

 

(a) As soon as reasonably possible after the insurer files itsannual statement with the commissioner, the commissioner shall review thestatement and require correction of any errors or omissions.

 

(b) After any corrections noted are made, the commissionershall:

 

(i) Cause each statement filed to be condensed and summarizedshowing briefly but intelligibly the capital, assets, liabilities, income,expenditures and business each insurer does within this state;

 

(ii) Include in the summary his certificate, if true, that tothe best of his knowledge and belief the insurer is in all respects incompliance with the insurance laws of this state;

 

(iii) Cause each summary and certificate to be published for six(6) successive days in a daily newspaper of general circulation within thestate, or for six (6) successive weeks in a weekly newspaper of generalcirculation, and the insurer shall pay the cost of publication upon receipt ofa statement from the newspaper.

 

(c) Insofar as is possible the commissioner shall distributethe publications equally among the newspapers located in this state.

 

26-3-127. Repealed by Laws 2000, Ch. 19, 2.

 

 

26-3-128. Repealed by Laws 2000, Ch. 19, 2.

 

26-3-129. Repealed by Laws 2000, Ch. 19, 2.

 

26-3-130. Retaliatory provisions against other states and countries.

 

 

(a) The commissioner shall impose upon any insurer, or upon theagent or representative of that insurer of any other state or any foreigncountry doing business in Wyoming the same taxes, licenses and other fees, inthe aggregate, and the same fines, penalties, deposit requirements or othermaterial requirements, obligations, prohibitions or restrictions as are imposedupon Wyoming insurers, or upon their agents or representatives, by the laws ofany other state or any political subdivision thereof, or any country or anyprovince or other political subdivision thereof.

 

(b) This section does not apply to:

 

(i) Application fees, examination fees, license fees,appointment fees and continuation fees for agents, adjusters, service representativesor consultants; or

 

(ii) Personal income taxes, ad valorem taxes on real or personalproperty nor to special purpose obligations or assessments imposed by anotherstate in connection with particular kinds of insurance other than property insurance,except that the commissioner shall consider deductions, from premium taxes orother taxes otherwise payable, allowed because of real estate or personalproperty taxes paid in determining the propriety and extent of retaliatoryaction under this section.

 

(c) For the purposes of this section:

 

(i) The domicile of an alien insurer, other than insurersformed under the laws of Canada, or a province thereof, is that state theinsurer designates in writing and files with the commissioner at time ofadmission to this state and may be that state in which:

 

(A) The insurer is first authorized to transact insurance;

 

(B) Is located the insurer's principal place of business in theUnited States; or

 

(C) Is held the insurer's largest deposit of trusteed assetsfor the protection of its policyholders in the United States.

 

(ii) The domicile of an insurer formed under the laws of Canadaor a province thereof is that province in which its head office is located.

 

(d) If the insurer does not make a designation as provided insubsection (c) of this section, its domicile is that state in which is locatedits principal place of business in the United States.

 

26-3-131. Disclosure of loss information; penalties.

 

 

(a) Any insurer writing property or casualty insurance in thisstate as defined in W.S. 26-5-104 and 26-5-106, shall provide the followinginformation to the named insured within thirty (30) days of receipt of theinsured's written request, but in no event more frequently than once in any twelve(12) month period:

 

(i) Information on claims involving the insured closed withinthe preceding two (2) years limited to the date and description of occurrenceand amount of payments, if any;

 

(ii) Information on open claims involving the insured limited tothe date and description of occurrence, amount of claim and amount of payment,if any;

 

(iii) Information on notices of occurrence involving the insuredlimited to the date and description of occurrence and amount of claim; and

 

(iv) The total amount of reserve on open claims provided noinsurer shall be required to provide information on any reserve specificallyapplicable to or identifying any claim which is or may become subject toproceedings before state or federal courts.

 

(b) An insurer which elects to cancel or nonrenew any policy ofinsurance subject to this section, for any reason other than nonpayment ofpremium, shall cause to be delivered to the insured, at the time such notice ofcancellation or nonrenewal is given, a brief statement advising the insured ofhis right to request the information required to be given under this section.

 

(c) Any insurer who violates this section is subject tomonetary penalties or license revocation or suspension as provided by W.S.26-1-107 and 26-3-116.

 

(d) Repealed By Laws 2004, Chapter 57, 3.

 

26-3-132. Commissioner's authority.

 

 

(a) For the purposes of making a determination of an insurer'sfinancial condition under this code, the commissioner may:

 

(i) Disregard any credit or amount receivable resulting fromtransactions with a reinsurer which is insolvent, impaired or otherwise subjectto a delinquency proceeding;

 

(ii) Make appropriate adjustments to asset values attributableto investments in or transactions with an insurer's parent company,subsidiaries or affiliates;

 

(iii) Refuse to recognize the stated value of accounts receivableif the ability to collect receivables is highly speculative in view of the ageof the account or the financial condition of the debtor;

 

(iv) Increase the insurer's liability in an amount equal to anycontingent liability, pledge or guarantee not otherwise included if there is asubstantial risk that the insurer will be called upon to meet the obligationundertaken within the next twelve (12) month period.

 

(b) If the commissioner determines that the continued operationof the insurer licensed to transact business in this state may be hazardous orinjurious to the policyholders or the general public, then the commissionermay, in addition to any other action permitted by this code, issue an orderrequiring the insurer to:

 

(i) Reduce the total amount of present and potential liabilityfor policy benefits by purchasing reinsurance;

 

(ii) Reduce, suspend or limit the volume of business being acceptedor renewed;

 

(iii) Reduce general insurance expenses and commission expensesby specified methods;

 

(iv) Increase the insurer's capital and surplus;

 

(v) Suspend or limit the declaration and payment of dividendsby an insurer to its stockholders or to its policyholders;

 

(vi) File reports in a form acceptable to the commissionerconcerning the market value of an insurer's assets;

 

(vii) Limit or withdraw from specified investments or discontinuespecified investment practices to the extent the commissioner deems necessary;

 

(viii) Document the adequacy of premium rates in relation to therisks insured;

 

(ix) File, in addition to regular annual statements, interimfinancial reports in the form adopted by the National Association of InsuranceCommissioners or in a format promulgated by the commissioner.

 

(c) Any insurer subject to an order under subsection (b) ofthis section may request a hearing to review that order as provided in W.S.26-2-125. Notwithstanding any other provision of law, the commissioner shallhold all hearings under this subsection privately, unless the insurer requestsa public hearing, in which case the hearing shall be public.

 

(d) This section shall not be construed to limit the powersgranted the commissioner by any other laws of this state.

 

ARTICLE 2 - INSURANCE REGULATORY INFORMATION SYSTEM

 

26-3-201. Short title.

 

Thisarticle is known and may be cited as the "Insurance Regulatory InformationSystem Act".

 

26-3-202. Immunity.

 

Membersof the National Association of Insurance Commissioners, their duly authorizedcommittees, subcommittees, and task forces, their delegates, NationalAssociation of Insurance Commissioners employees, and all others charged withthe responsibility of collecting, reviewing, analyzing and disseminating theinformation developed by the National Association of Insurance Commissioners'Insurance Regulatory Information System from annual statements filed with theNational Association of Insurance Commissioners convention blanks shall beacting as agents of the commissioner under the authority of this article and inthe absence of actual malice shall not be subject to civil liability for libel,slander or any other cause of action by virtue of their collection, review andanalysis or dissemination of the data and information collected from thefilings.

 

26-3-203. Confidentiality.

 

Allfinancial analysis ratios and examination synopsis concerning insurancecompanies that are submitted to the department by the National Association ofInsurance Commissioners' Insurance Regulatory Information System areconfidential and shall not be disclosed by the department except as authorizedby and in accordance with the provisions of W.S. 26-2-113(d).

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