58-33-94. Acts constituting transaction of insurance business in or from state.

383 words·~2 min read·/sd/title-58/chapter-58-33/58-33-94

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

For purposes of §§ 58-33-93 to 58-33-116 , inclusive, any of the following acts in this state effected by mail or otherwise by a nonadmitted insurer or by any person acting with the actual or apparent authority of the insurer, on behalf of the insurer, constitutes the transaction of an insurance business in or from this state:

(1)The making of or proposing to make, as an insurer, an insurance contract;

(2)The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate business or activity of the guarantor or surety;

(3)The taking or receiving of an application for insurance;

(4)The receiving or collection of any premium, commission, membership fees, assessments, dues, or other consideration for insurance or any part thereof;

(5)The issuance or delivery in this state of contracts of insurance to residents of this state or to persons authorized to do business in this state;

(6)The solicitation, negotiation, procurement, or effectuation of insurance or renewals thereof;

(7)The dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, the fixing of rates or investigation or adjustment of claims or losses or the transaction of matters subsequent to effectuation of the contract and arising out of it, or any other manner of representing or assisting a person or insurer in the transaction of risks with respect to properties, risks, or exposures located or to be performed in this state;

(8)The transaction of any kind of insurance business specifically recognized as transacting an insurance business within the meaning of the statutes relating to insurance;

(9)The offering of insurance; or

(10)Offering an agreement or contract which purports to alter, amend or void coverage of an insurance contract.

No provision of this section prohibits employees, officers, directors, or partners of a commercial insured from acting in the capacity of an insurance manager or buyer in placing insurance on behalf of the employer, if the person's compensation is not based on buying insurance. The venue of an act committed by mail is at the point where the matter transmitted by mail is delivered or issued for delivery or takes effect.