20-1097.02. Certificate of authority; requirements; issuance

A. No person may enter into any contract with any other person in which the contract purports to extend certain prepaid legal insurance without the person having first obtained a certificate of authority from the director.

B. An applicant shall file with the department an application for a certificate of authority on a form to be furnished by the department which shall include the following:

1. The names and, for the preceding five years, all addresses and all occupations of officers and directors of the corporation.

2. A certified copy of the corporate articles and bylaws and, for the three most recent years, the corporation's annual statement and report, if applicable.

3. A copy of any insurance or reinsurance contract executed by the corporation for insuring the payment of the cost for legal services or the provision for automatic applicability of an alternative coverage in the event the applicant is unable to perform its obligations.

4. The forms to be used for any proposed contract between the applicant and individual purchasers of the applicant's prepaid legal insurance contract, any contracts between the applicant and participating attorneys under the program, any contracts between the applicant and other persons who perform administration, marketing or management services and all forms relating to the provision of services to beneficiaries or purchasers of the prepaid legal insurance contracts.

5. A narrative plan detailing the proposed conduct of the prepaid legal insurance business within this state which must include all of the following:

(a) The geographical area in which business is intended to be conducted in the first five years of operation.

(b) The proposed marketing method to be used by the corporation.

(c) A current statement of the assets and liabilities of the applicant.

(d) Forms of all service contracts the applicant chooses to offer showing the rates to be charged for each form of contract.

(e) Such other documents and information as the director may reasonably require.

C. The director shall, within sixty days after the filing of the application, either issue a certificate pursuant to the application or provide the applicant with a written explanation as to why the application has been denied.

D. The director shall issue the certificate if he is satisfied that the applicant has:

1. Demonstrated that it is competent.

2. Provided the director with a business plan which is consistent with the interests of the potential insureds and of the public.

3. Met all other requirements of this article.