§ 58-28-15. Validity of acts or contracts of unauthorized company shall not impair obligation of contract as to the company; maintenance of suits; right to defend.
§58‑28‑15. Validity of acts or contracts of unauthorized companyshall not impair obligation of contract as to the company; maintenance ofsuits; right to defend.
The failure of a company toobtain a license shall not impair the validity of any acts or contracts of thecompany. Any person or insured holding contracts of insurance of anunauthorized insurer may bring an action in the courts of this State under theprovisions of G.S. 58‑16‑35 for the enforcement of any rightspursuant to the contract of insurance. The failure of the insurance company toobtain a license shall not prevent such company from defending any action atlaw or suit in equity in any court of this State so long as the said companyfully complies with the provisions of G.S. 58‑16‑35(c), but nocompany transacting insurance business in this State without a license shall bepermitted to maintain an action at law or in equity in any court of this Stateto enforce any right, claim or demand arising out of the transaction of suchbusiness until such company shall have obtained a license. Nor shall an actionat law or in equity be maintained in any court of this State by any successoror assignee of such company on any such right, claim or demand originally heldby such company until a license shall have been obtained by the company or by acompany which has acquired all or substantially all of its assets. Nothing inthis section shall be construed to abrogate the conditions of admission intothis State nor to impair the authority of the Commissioner with respect to theissuance of licenses. The Commissioner in considering the issuance of a licenseshall take into consideration the acts or transactions which an unauthorizedcompany has engaged in in this State prior to its application for a license. (1967,c. 909, s. 1; 1991, c. 720, ss. 4, 56; 1999‑132, s. 9.1; 2000‑140,s. 12.)