As used in this chapter:

(1) "Insurer" means a person who has done, purports to do, is going to do, or is licensed to do an insurance business and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by the department, or similar entity, of a state. For purposes of this chapter, other persons included under Section 38-27-40 are considered insurers.

(2) "Exceed its powers" means the following conditions:

(a) The insurer has refused to permit examination of its books, papers, accounts, records, or affairs by the director or his deputies, designees, employees, or commissioned examiners.

(b) A domestic insurer unlawfully has removed from this State books, papers, accounts, or records necessary for an examination of the insurer.

(c) The insurer has failed to comply promptly with the applicable financial reporting statutes or regulations and related departmental requests.

(d) The insurer has neglected or refused to observe an order of the director or his designee to make good, within the time prescribed by law, prohibited deficiency in its capital, capital stock, or surplus.

(e) The insurer is continuing to transact insurance or write business after its license has been revoked or suspended by the director or his designee.

(f) The insurer, by contract or otherwise, unlawfully, in violation of an order of the director or his designee, or without first having obtained written approval of the director or his designee if approval is required by law has:

(i) totally reinsured its entire outstanding business; or

(ii) merged or consolidated substantially its entire property or business with another insurer.

(g) The insurer engaged in a transaction in which it is not authorized to engage under the laws of this State.

(h) The insurer refused to comply with a lawful order of the director or his designee.

(3) "Consent" means agreement to administrative supervision by the insurer.

HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.