§ 301. Application of title to existing insurers

Existing authorized domestic insurers shall continue to insure only in accordance with the provisions of this title.

§ 302. Principal office

Every domestic insurer shall establish and maintain in this territory its principal office and place of business.

§ 303. Application of general corporation laws

The laws of this territory relating to private corporations, except where inconsistent with the express provisions of this title, shall govern the corporate powers, duties, and relationships of incorporated domestic insurers.

§ 304. Annual meeting

Each incorporated domestic insurer shall, in the month of January, or February, or March, hold the annual meeting of its shareholders or members for the purpose of receiving reports of its affairs, to elect directors, and to act upon such other matters as properly be brought before it.

§ 305. Directors, qualifications

Not less than three-fourths of the directors of an incorporated domestic insurer shall be United States citizens, and a majority of the board of directors shall be residents of this territory.

§ 306. Corrupt practices; penalty

No person shall buy or sell or barter a vote or proxy, relative to any meeting of shareholders or members of an incorporated domestic insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any such meeting. Violation of this section shall constitute a gross misdemeanor.

§ 307. Amendment of articles of incorporation

(a) Amendments to the articles of incorporation of a domestic insurer shall be made by a majority vote of its board of directors and the vote or written assent of two-thirds of its voting capital stock, or two-thirds of the members (if a mutual insurer) voting at a valid meeting of members. (b) The president […]

§ 308. Guarantee of officers’ obligations prohibited

No domestic insurer or its affiliates or subsidiaries shall guarantee the financial obligation of any director or officer of such insurer or affiliate or subsidiary in his personal capacity, and any such guaranty attempted shall be void. This prohibition shall not apply to obligations of the insurer under surety bonds or insurance contracts issued in […]

§ 309. Management and exclusive agency contracts

(a) No incorporated domestic insurer shall enter into any contract the effect of which would be to grant or surrender the control and management of the insurer to any person. (b) No incorporated domestic insurer shall make any contract whereby any person is granted or is to enjoy in fact the controlling or preemptive right […]

§ 310. Vouchers for expenditures

(a) No domestic insurer shall make any disbursement of $25 or more, unless evidenced by a voucher correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money. (b) If the disbursement is for services and reimbursement, the voucher […]

§ 311. Depositaries

The funds of a domestic insurer shall not be deposited in any bank or banking institution which has not first been approved as a depositary by the insurer’s board of directors or by a committee thereof designated for the purpose.

§ 312. Restrictions upon pecuniary interest of director

(a) No person having any authority in the investment or disposition of the funds of a domestic insurer shall accept, except for the insurer, or be the beneficiary of any fee, brokerage, gift, or other emolument because of any investment, loan, deposit, purchase, sale, payment, or exchange made by or for the insurer, or be […]

§ 313. Compliance with foreign laws

Any domestic insurer doing business in another territory, state or sovereignty may design and issue insurance contracts and transact insurance in such territory, state or sovereignty as required or permitted by the laws thereof, any provision of the insurer’s articles of incorporation or bylaws notwithstanding.

§ 314. Solicitation in reciprocating states

(a) No domestic insurer shall knowingly solicit insurance business in any reciprocating state in which it is not then licensed as an authorized insurer. (b) This section shall not prohibit advertising through publications and radio and television broadcasts originating outside such reciprocating state, if the insurer is licensed in a majority of the states in […]