(a)

(1) No domestic insurer shall make any contract with any insurance company or holding company or any other type of company whereby the company is to perform substantially all of the administrative functions for the insurer until that contract is filed with and has received prior written approval by the Insurance Commissioner.

(2) Administrative functions of an insurer include, but are not limited to, underwriting, policy issue, accounting, premium notice preparation, agents' commission statements, other periodical accounting reports, preparation of annual convention statements, and managerial consulting services.

(b) Any disapproval by the commissioner shall be delivered to the insurer in writing, stating the grounds therefor.

(c) The commissioner shall disapprove any contract if he or she finds that it:

(1) Subjects the insurer to excessive charges;

(2) Is to extend for an unreasonable length of time;

(3) Does not contain fair and adequate standards of performance; or

(4) Contains other inequitable provisions which impair the proper interests of stockholders or policyholders of the insurer.

(d)

(1) All service contracts approved under this section shall be submitted annually to the commissioner for review and approval on the anniversary date of first approval.

(2) The commissioner, in his or her discretion, may require submission of a contract for review at any time if he or she feels a review would be in the best interest of stockholders or policyholders of the insurer.

(3) Any contract not submitted in accordance with this act shall be deemed disapproved as of the day following the day that contract should have been submitted.

(e) The provisions of this section shall not apply to contracts of domestic licensees governed by the provisions of:

(1) Sections 23-63-514 and 23-63-515 of the Insurance Holding Company Regulatory Act, § 23-63-501 et seq.;

(2) The Managing General Agents Act, § 23-64-401 et seq.; and

(3) Section 23-69-137 concerning contracts for management and exclusive agents.