20-1096. Definitions In this article, unless the context otherwise requires: 1. " Consumer" means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who […]
20-1096.01. Formation of mechanical reimbursement reinsurer; articles of incorporation A. Five or more individuals who are eighteen years of age or older may incorporate as a mechanical reimbursement reinsurer. Not less than two-thirds of the incorporators shall be citizens of the United States residing in this state. B. In addition to the requirements of title […]
20-1096.02. Capital To qualify for its initial authority to transact business and to qualify for renewal of its authority to transact business, a mechanical reimbursement reinsurer is required to possess and thereafter maintain minimum required capital stock in an amount of one hundred thousand dollars.
20-1096.03. Surplus A mechanical reimbursement reinsurer is required to have upon organization initial surplus in an amount not less than one-half of its minimum required capital stock and shall thereafter maintain one-half of the initial surplus.
20-1096.04. Qualifications The director shall not issue a certificate of authority to a mechanical reimbursement reinsurer unless all of the following conditions are met: 1. The applicant is a corporation incorporated under the laws of this state. 2. The applicant furnishes such proof as necessary to the director that the directors and management of the […]
20-1096.05. Annual reports; renewal of certificate of authority A. No later than April 1 of each year, a mechanical reimbursement reinsurer shall submit to the director a report written in a form designated by the director and signed by the president and secretary of the reinsurer that clearly indicates the method being used to determine […]
20-1096.06. Filing of cash or alternatives to cash A. To assure faithful performance of its reinsurance obligations each mechanical reimbursement reinsurer shall, prior to the issuance of a certificate of authority, file with or for the benefit of the director cash or alternatives to cash which at all times have a value of at least […]
20-1096.07. Reserves Each mechanical reimbursement reinsurer shall maintain policy and loss reserves in those amounts as the director deems sufficient.
20-1096.08. Nonrenewal, revocation or suspension of certificate of authority The director may refuse to renew or may revoke or suspend any certificate of authority issued to a mechanical reimbursement reinsurer pursuant to this article if, after notice and a hearing, the director finds any of the following: 1. In the opinion of the director the […]
20-1096.09. Cease and desist order; violation of article If a hearing is held pursuant to the provisions of this title, and if the director determines that the provisions of this article have been violated, the director shall, in addition to the authority to revoke or suspend a certificate of authority, issue an order requiring the […]
20-1096.10. Rules and regulations The director may adopt those rules as are necessary to implement the provisions of this article.
20-1096.11. Scope and limitations of article A. This article does not alter or diminish any right, privilege or authority granted to any insurer under any section of this title. B. All mechanical reimbursement reinsurers operating pursuant to a certificate of authority as required by this article are exempt from the applicability of the insurance laws […]
