§ 6733. — Effect on State laws restricting redomestication.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC6733]
TITLE 15--COMMERCE AND TRADE
CHAPTER 93--INSURANCE
SUBCHAPTER II--REDOMESTICATION OF MUTUAL INSURERS
Sec. 6733. Effect on State laws restricting redomestication
(a) In general
Unless otherwise permitted by this subchapter, State laws of any
transferor domicile that conflict with the purposes and intent of this
subchapter are preempted, including but not limited to--
(1) any law that has the purpose or effect of impeding the
activities of, taking any action against, or applying any provision
of law or regulation to, any insurer or an affiliate of such insurer
because that insurer or any affiliate plans to redomesticate, or has
redomesticated, pursuant to this subchapter;
(2) any law that has the purpose or effect of impeding the
activities of, taking action against, or applying any provision of
law or regulation to, any insured or any insurance licensee or other
intermediary because such person has procured insurance from or
placed insurance with any insurer or affiliate of such insurer that
plans to redomesticate, or has redomesticated, pursuant to this
subchapter, but only to the extent that such law would treat such
insured licensee or other intermediary differently than if the
person procured insurance from, or placed insurance with, an insured
licensee or other intermediary which had not redomesticated; and
(3) any law that has the purpose or effect of terminating,
because of the redomestication of a mutual insurer pursuant to this
subchapter, any certificate of authority, agent appointment or
license, rate approval, or other approval, of any State insurance
regulator or other State authority in existence immediately prior to
the redomestication in any State other than the transferee domicile.
(b) Differential treatment prohibited
No State law, regulation, interpretation, or functional equivalent
thereof, of a State other than a transferee domicile may treat a
redomesticating or redomesticated insurer or any affiliate thereof any
differently than an insurer operating in that State that is not a
redomesticating or redomesticated insurer.
(c) Laws prohibiting operations
If any licensed State fails to issue, delays the issuance of, or
seeks to revoke an original or renewal certificate of authority of a
redomesticated insurer promptly following redomestication, except on
grounds and in a manner consistent with its past practices regarding the
issuance of certificates of authority to foreign insurers that are not
redomesticating, then the redomesticating insurer shall be exempt from
any State law of the licensed State to the extent that such State law or
the operation of such State law would make unlawful, or regulate,
directly or indirectly, the operation of the redomesticated insurer,
except that such licensed State may require the redomesticated insurer
to--
(1) comply with the unfair claim settlement practices law of the
licensed State;
(2) pay, on a nondiscriminatory basis, applicable premium and
other taxes which are levied on licensed insurers or policyholders
under the laws of the licensed State;
(3) register with and designate the State insurance regulator as
its agent solely for the purpose of receiving service of legal
documents or process;
(4) submit to an examination by the State insurance regulator in
any licensed State in which the redomesticated insurer is doing
business to determine the insurer's financial condition, if--
(A) the State insurance regulator of the transferee domicile
has not begun an examination of the redomesticated insurer and
has not scheduled such an examination to begin before the end of
the 1-year period beginning on the date of the redomestication;
and
(B) any such examination is coordinated to avoid unjustified
duplication and repetition;
(5) comply with a lawful order issued in--
(A) a delinquency proceeding commenced by the State
insurance regulator of any licensed State if there has been a
judicial finding of financial impairment under paragraph (7); or
(B) a voluntary dissolution proceeding;
(6) comply with any State law regarding deceptive, false, or
fraudulent acts or practices, except that if the licensed State
seeks an injunction regarding the conduct described in this
paragraph, such injunction must be obtained from a court of
competent jurisdiction as provided in section 6734(a) of this title;
(7) comply with an injunction issued by a court of competent
jurisdiction, upon a petition by the State insurance regulator
alleging that the redomesticating insurer is in hazardous financial
condition or is financially impaired;
(8) participate in any insurance insolvency guaranty association
on the same basis as any other insurer licensed in the licensed
State; and
(9) require a person acting, or offering to act, as an insurance
licensee for a redomesticated insurer in the licensed State to
obtain a license from that State, except that such State may not
impose any qualification or requirement that discriminates against a
nonresident insurance licensee.
(Pub. L. 106-102, title III, Sec. 313, Nov. 12, 1999, 113 Stat. 1419.)
