§ 58-29-20. Acts appointing Commissioner as attorney for service of statement of charges, notices and process; manner of service; limitation on entry of order or judgment.
§58‑29‑20. Acts appointing Commissioner as attorney for service ofstatement of charges, notices and process; manner of service; limitation onentry of order or judgment.
(a) Any of thefollowing acts in this State, effected by mail or otherwise, by any suchunauthorized foreign or alien insurer:
(1) The issuance ordelivery of contracts of insurance to residents of this State,
(2) The solicitation ofapplications for such contracts,
(3) The collection ofpremiums, membership fees, assessments or other considerations for suchcontracts, or
(4) Any othertransaction of insurance business,
Is equivalent to and shallconstitute an appointment by such insurer of the Commissioner and his successoror successors in office, to be its true and lawful attorney, upon whom may beserved all statements of charges, notices and lawful process in any proceedinginstituted in respect to the misrepresentations set forth in G.S. 58‑29‑10under the provisions of the Unfair Trade Practice Act, or in any action, suitor proceeding for the recovery of any penalty therein provided, and any suchact shall be signification of its agreement that such service of statement ofcharges, notices or process is of the same legal force and validity as personalservice of such statement of charges, notices or process in this State, uponsuch insurer.
(b) Service of astatement of charges and notices under said Unfair Trade Practice Act shall bemade by any deputy or employee of the Department delivering to and leaving withthe Commissioner or some person in apparent charge of his office, two copiesthereof. Service of process issued by any court in any action, suit orproceeding to collect any penalty under said act provided, shall be made bydelivering and leaving with the Commissioner, or some person in apparent chargeof his office, two copies thereof. The Commissioner shall forthwith cause tobe mailed by registered mail one of the copies of such statement of charges,notices or process to the defendant at its last known principal place ofbusiness, and shall keep a record of all statements, charges, notices andprocess so served. Such service of statement of charges, notices or processshall be sufficient provided they shall have been so mailed and the defendant'sreceipt or receipt issued by the post office with which the letter isregistered, showing the name of the sender of the letter and the name andaddress of the person to whom the letter is addressed, and the affidavit of theperson mailing such letter showing a compliance herewith are filed with theCommissioner in the case of any statement of charges or notices, or with theclerk of the court in which such action is pending in the case of any process,on or before the date the defendant is required to appear or within such furthertime as may be allowed.
(c) Service ofstatement of charges, notices and process in any such proceeding, action orsuit shall in addition to the manner provided in subsection (b) of this sectionbe valid if served upon any person within this State who on behalf of suchinsurer is
(1) Solicitinginsurance, or
(2) Making, issuing ordelivering any contract of insurance, or
(3) Collecting orreceiving in this State any premium for insurance;
And a copy of such statement ofcharges, notices or process is sent within 10 days thereafter by registeredmail by or on behalf of the Commissioner to the defendant at the last knownprincipal place of business of the defendant, and the defendant's receipt, orthe receipt issued by the post office with which the letter is registered,showing the name of the sender of the letter, the name and address of theperson to whom the letter is addressed, and the affidavit of the person mailingthe same showing a compliance herewith, are filed with the Commissioner in thecase of any statement of charges or notices, or with the clerk of the court inwhich such action is pending in the case of any process, on or before the datethe defendant is required to appear or within such further time as the courtmay allow.
(d) No cease or desistorder or default judgment under this section shall be entered until theexpiration of 30 days from the date of the filing of the affidavit ofcompliance.
(e) Service of processand notice under the provisions of this Article shall be in addition to all othermethods of service provided by law, and nothing in this Article shall limit orprohibit the right to serve any statement of charges, notices or process uponany insurer in any other manner now or hereafter permitted by law. (1965,c. 910; 1991, c. 720, ss. 4, 5, 57.)