44-2005. Unauthorized insurer; court action; requirements.

322 words·~1 min read·/ne/chapter-44/44-2005

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Before any unauthorized insurer files or causes to be filed any pleading or other response in any court action, suit, or proceeding or in any such administrative proceeding before the Director of Insurance instituted against such person or insurer, by services made as provided in section 44-2004 , such insurer shall either:

(a)Deposit with the clerk of the court in which such action, suit, or proceeding is pending, or with the Director of Insurance in administrative proceedings before the director, cash or securities, or file with such clerk of the court or director a bond with good and sufficient sureties, to be approved by the clerk or director in an amount to be fixed by the court or director sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding; or

(b)Procure a certificate of authority to transact the business of insurance in this state. In considering the application of an insurer for a certificate of authority, for the purposes of this subsection, the Director of Insurance need not assert the provisions of Chapter 44, against such insurer with respect to its application if he determines that such company would otherwise comply with the requirements for such certificate of authority.

(2)The Director of Insurance, in any administrative proceeding in which service is made as provided in section 44-2004 , may in his discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection

(1)of this section and to defend such action.

(3)Nothing in subsection

(1)of this section shall be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in section 44-2004 , on the ground that such unauthorized insurer has not done any of the acts enumerated in section 44-2002 .