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40-2001. Purpose; legislative declaration.

40-2001

Chapter 40.--INSURANCE
Article 20.--UNAUTHORIZED INSURERS PROCESS ACT

      40-2001.   Purpose; legislative declaration.The purpose of this act is to subject certain insurers to thejurisdiction of courts of this state in suits by or on behalf of insuredsor beneficiaries under insurance contracts.

      The legislature declares that it is a subject of concern that manyresidents of this state hold policies of insurance issued or delivered inthis state by insurers while not authorized to do business in this state,thus presenting to such residents the often insuperable obstacle ofresorting to distant forums for the purpose of asserting legal rights undersuch policies. In furtherance of such state interest, the legislatureherein provides a method of substituted service of process upon suchinsurers and declares that in so doing it exercises its powers to protectits residents and to define, for the purpose of this statute, whatconstitutes doing business in this state, and also exercises powers andprivileges available to the state by virtue of Public Law 15, 79th Congressof the United States, Chapter 20, 1st Session, S. 340, [*] which declaresthat the business of insurance and every person engaged therein shall besubject to the laws of the several states.

      History:   L. 1949, ch. 283, § 1; June 30.

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