56-43-105 - Certificate of authority Issuance Duration.
56-43-105. Certificate of authority Issuance Duration.
(a) Upon receipt of an application for a certificate of authority, the commissioner shall issue a certificate pursuant to this chapter upon payment of the application fee prescribed in § 56-43-115, if the commissioner is satisfied that the following conditions are met:
(1) The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy and of good reputation;
(2) The applicant demonstrates the willingness and ability to assure that the promised benefits can be provided. In making this determination, the commissioner shall consider so far as applicable:
(A) The adequacy of capital and surplus considered in relation to the other items in this subsection (a);
(B) Any agreement with lawyers for the provision of legal services;
(C) The financial soundness of the applicant's arrangements for legal services and the schedule of rates proposed to be used in connection with the arrangements;
(D) Any agreement with another person authorized under this chapter, an insurer licensed under the general insurance law to do business in this state to provide reinsurance, or an agency of the federal or state government for insuring the payment of the cost of legal services or the provision for automatic applicability of an alternative coverage in the event the insurer is unable to perform its obligations;
(E) Any surety bond or deposit of cash or securities as a guarantee that the obligations will be duly performed; and
(F) If the applicant is licensed as an insurer under other insurance laws, whether the applicant has complied with the requirements of those laws.
(b) A certificate of authority shall be perpetual and shall continue in force unless there are grounds for suspension or revocation.
[Acts 1989, ch. 423, § 4.]