INSURANCE
AND INSURANCE COMPANIES
Chapters:
03 Insurers-General
Requirements
04 Uniform
Unauthorized Insurers Act
05-09 (Reserved)
11-14 (Reserved)
Sections:
29.0101 Definitions.
29.0102 Scope of title.
29.0103 Notices to be in
writing-Service.
29.0104 References to time.
29.0105 Prohibited acts.
29.0106 Exercise of power.
29.0107 Perjury.
29.0108 Violation-Penalty.
Reviser’s Comment:
Section 1 of PL 13-58, 1974, provided, in part,
that this part may be cited as the “Insurance Law”.
Section 1 of PL 13-58, 1974, provided, in part,
that: “No action or proceedings commenced, and no right accrued, prior to the
effective date hereof, is affected by this act this part; but, all procedure
hereafter taken shall conform to this act this part so far as possible.”
Section 1 of PL 13-58, 1914, provided, in part,
that: “This act this part insofar as it is substantially the same as existing
statutory provisions relating to the same subject matter shall be construed as
restatements and continuations thereof, and not as new enactments.”
29.0101 Definitions.
The
following rules and definitions shall be used in interpreting the provisions of
this title:
(1) The present tense includes the past and future
tenses, and the future, the present.
(2) “Shall” is mandatory and “may” is permissive
unless otherwise apparent from the context.
(3) “Action” means any action, suit, or legal
proceeding.
(4) “Adjuster” means any person who acts for or on
behalf of an insurer or an insured in determining and making settlement of the
amount payable to the insured for any loss or damage under a policy.
(5) “Admitted” in relation to a person means
entitled to transact insurance business in
(6) “Advisory organization” means every person,
other than an admitted insurer, who prepares policy forms or makes underwriting
rules, or who collects and furnishes loss or expense statistics or other
statistical information and data and acts in an advisory, as distinguished from
a rate-making, capacity. No duly authorized attorney acting in the usual
course of his profession shall be deemed an advisory organization.
(7) “Agent” means a person appointed by an insurer
to solicit applications for insurance or to negotiate insurance on its behalf,
and, if authorized to do so by the insurer, to effect and countersign insurance
policies. Agent means both general agent and subagent unless otherwise
apparent from the context.
(8) “Alien” means organized under the laws of any
government other than
(9) “Broker” means a person who, for compensation
and on behalf of another person, transacts insurance business other than as
treasurer, general agent, subagent or solicitor.
(10) “Certificate” means the certificate of
authority required of an insurer to transact business in
(11) “Commissioner” means the Commissioner of
Insurance.
(12) “Domestic” means organized under the laws of
(13) “Domestic risks” means a subject of insurance
resident, located or to be performed in this territory.
(14) “Foreign” means not organized under the laws
of
(15) “General agent” means a person authorized by
an insurer to countersign, issue and deliver new policies, to accept service of
process on behalf of the insurer, and vested with full authority to consummate
a contract of insurance and to transact all other necessary business of the
insurer in American Samoa.
(16) “General insurance broker” means a broker who
the Insurance Commissioner has certified to act for and on behalf of persons in
(17) “Insurance” means a contract whereby one
undertakes to indemnify another against lost, damage, or liability arising from
contingent or unknown events.
(18) “Insurer” means the person who undertakes to
indemnify another by insurance; “insured” means the person so indemnified.
(19) “Issue” means to write, renew, execute, effect
or otherwise enter into a contract of insurance.
(20) “Judgment” includes decree or other final
order.
(21) “Office” means the Office of the Commissioner
of Insurance.
(22) “Paid-in capital” or “capital paid-in” means
the lower of the following amounts:
(A) the value of an insurer’s assets in excess of
the sum of its liabilities for losses reported, expenses, taxes, and all other
indebtedness and reinsurance of outstanding risks as provided by law;
(B) the aggregate par value of an insurer’s
issued shares of stock, including treasury shares. For the purpose of computing
“paid-in capital” or “capital paid-in”, shares of stock are not considered as
liabilities.
(23) “Person” means any person, association,
organization, partnership, business trust, or corporation.
(24) “Policy” means the written instrument in which
a contract of insurance is set forth and includes all clauses, riders, endorsements
and papers which are a part thereof, and annuities.
(25) “Political subdivision” in reference to the
(26) “Rating bureau” means every person, other than
an admitted insurer, who has as his object or purpose the making of
rates-rating plans or rating systems.
(27) “Reinsurance” means the insurance ceded and
accepted between two insurers one of whom has effected the direct insurance.
(28) “Public enemy” means any state at war with
American Samoa or the United States of America, or a citizen or subject of that
state, or a person, partnership or corporation doing business within the
territory of an enemy state or an ally thereof.
(29) “Signature” includes a mark when the signer or
subscriber cannot write, provided his name is written near the mark by a
witness who also signs the instrument together with a second witness.
(30) “Solicitor” means a person authorized by
either the insurer or its general agent or a subagent to act as its
representative but whose duties and authority are confined merely to soliciting
insurance and aiding in the preparation of applications for insurance.
(31) “Subagent” means a person authorized
by either the insurer or its general agent to solicit applications, receive
proposals, receive first premiums, deliver policies, and make contracts of
insurance subject only to the acceptance and countersignature of the general
agent.
(32) “Transact insurance” means one or more of the
following acts effected by mail or otherwise:
(A) making or proposing to
make an insurance contract;
(B) taking or receiving any obligation for
insurance;
(C) receiving or collecting any premium,
commission, membership fee, assessment, due or other consideration for any
insurance or any part thereof;
(D) issuing or delivering policies of insurance;
(E) directly or indirectly acting as an agent
for, or otherwise representing or aiding on behalf of, another, any person in
the solicitation, negotiation, procurement or effectuation of insurance or
renewals thereof, the dissemination of information as to coverage or rates,
the forwarding of applications, the delivering of policies, the inspection of
risk, the fixing of rates, the investigation or judgment of claims or lawsuits,
the transaction of matters subsequent to effectuation of the policy and arising
out of it, or in any other manner representing or assisting a person with
respect to insurance;
(F) advertising locally or circularizing therein
without regard for the source of such circulation, whenever such advertising
or circulation is for the purpose of solicitation of insurance business;
(G) doing any other kind of business specifically
recognized as constituting the conduct of an insurance business within the
meaning of the insurance law;
(H) doing or proposing to do an insurance business
in substance equivalent to any of paragraphs (A) to (G) in a manner designed to
evade the insurance law.
(33) “
(34) “Writing” means any form of recorded message
capable of comprehension by ordinary visual means.
History: 1974,
PL 13-58 § 1; amd 1978, PL 15-79 § 1.
Amendment: 1978 Added
definition of “general insurance broker”.
Research Guide:
For definitions of types of insurance, see
29.1502 et seq.
29.0102 Scope of title.
All
insurance transacted in
History: 1974, PL 13-58 § 1.
29.0103 Notices to be in
writing-Service.
Whenever
any notice is required by this title, it shall be in writing unless expressly
otherwise provided. Any required notice may be given by mailing the notice,
postage prepaid, addressed to the person to be notified, at his last known
residence or his principal place of business unless expressly otherwise
provided. An affidavit setting forth the facts of the mailing by the person
doing so is prima facie evidence of the notice.
History: 1974, PL 13-58 § 1.
29.0104 References to time.
Any
date or time mentioned in this title, or in any policy of insurance issued
under authority of this title, shall be conclusively presumed to refer to
History: 1974, PL 13-58 § 1.
29.0105 Prohibited acts.
Except
as otherwise expressly provided by law, no person directly or indirectly may
enter into any contract, understanding or combination with any insurer or
manager, agent or representative thereof for the purpose of, nor may any
persons or insurers jointly or severably do any act or engage in any practice
for the purpose of:
(1) controlling the rates to be charged, or the
commissions or other compensation to be paid, for insuring any risk or class of
risks;
(2) entering into any agreement to commit, or
individually or by any concerted action commit, any act of boycott, coercion,
or intimidation resulting or tending to result in unreasonable restraint of,
or a monopoly in, the business of insurance.
History: 1974, PL 13-58 § 1.
29.0106 Exercise of power.
Whenever,
under this title, a power is granted to a public officer or a duty imposed upon
that officer, the power or duty maybe performed by a deputy or assistant of the
officer authorized to do so.
History: 1974, PL 13-58 § 1.
29.0107 Perjury.
Any
person who knowingly swears to or verifies any false or fraudulent statement,
or who, when testifying at any hearing, examination or inquiry pursuant to this
title, makes any false or fraudulent statement, is guilty of a felony, and upon
conviction thereof shall be sentenced to imprisonment for not more than 5
years, or fined not more than $5,000, or both.
History: 1974, PL 13-58 § 1.
29.0108 Violation-Penalty.
Any
person violating this title, or any regulations issued under this title, or
any lawful order of the Commissioner, for which a penalty is not otherwise
specifically provided, is guilty of a misdemeanor, and upon conviction is subject
to a fine not to exceed $500, or imprisonment for not more than 6 months, or
both.
History: 1974, PL 13-58 § 1.
Chapter 02
INSURANCE
COMMISSIONER
Sections:
29.0201 Appointment-Duties.
29.0202 Appointment of deputies and other employees.
29.0203 Conflict of interest regulation.
29.0204 Bonds.
29.0205 Authority
and powers.
29.0206 Interpretation of order
of Commissioner.
29.0207 Cease
and desist order.
29.0208 Enforcement
of order.
29.0209 Inquiries by Commissioner to others.
29.0210 Investigation
of persons transacting insurance.
29.0211 Examination of
insurers-Audit.
29.0212 Records to be kept.
29.0213 Complaints-Determination
of public record.
29.0214 False
or misleading filings with the Commissioner prohibited.
29.0215 Request for hearing.
29.0216 Promulgation
of regulations.
29.0217 Annual reports.
29.0201 Appointment-Duties.
(a) The Governor shall appoint the
Commissioner of Insurance.
(b) He shall perform all duties imposed upon him
by this title and other laws regulating the business of insurance in
History: 1974,
PL 13-58 § 1.
29.0202 Appointment of
deputies and other employees.
The Commissioner may appoint a deputy, who may be delegated all the
duties and powers of the Commissioner, and such additional employees as may be
necessary for the performance of the functions of his office. Such
appointments must be made in accordance with the merit system law.
History: 1974, PL 13-58 § 1.
29.0203 Conflict
of interest regulation.
Neither
the Commissioner, deputy commissioner, or any employee of the Office of Insurance
Commissioner may be a broker, agent, or solicitor, or an officer or employee of
an insurer, or in any way, directly or indirectly, participate in or have any
financial interest in, or be affiliated with, any insurance business, except
as a policyholder or claimant under an insurance policy.
History: 1974, PL 13-58 § 1.
29.0204 Bonds.
The Commissioner and deputy commissioner shall be bonded with a good
and sufficient surety, to be approved by the Governor, in an amount determined
by the Governor, but not less than $10,000, conditioned that he shall
faithfully account for and dispose of any funds and securities received into
his custody or control, in accordance with applicable law.
History: 1974,
PL 13-58 § 1.
29.0205 Authority
and powers.
(a)
The Commissioner has all the authority and powers specifically set out in this
title, or as may be reasonably implied from the powers conveyed in this
section, for the proper administration and enforcement of this title and other
laws relating to the business of insurance.
(b) The Commissioner may examine, or cause to be
examined, the books, papers and property, and the affairs of any insurer,
broker, agent, solicitor, or rating bureau, or any person believed by him to
be violating this title or other laws relating to the business of insurance,
and generally, he may make such examinations, conduct such inquiries and hold
such hearings as are specifically provided for in this title or as are
reasonably necessary for the proper discharge of his duties.
(c) In connection with any examination, inquiry,
or hearing, the Commissioner may administer oaths, summon and compel the attendance
of witnesses, examine under oath all persons having information or believed by
him to have information concerning the affairs of any insurer, broker, agent,
solicitor, or rating bureau, or any person engaged in organizing, promoting, or
forming an insurer, or any person whom the Commissioner believes is violating
this title or other laws relating to the business of insurance, and compel that
person to produce any books or papers under this custody or control relevant
thereto.
(d) Should a person fail to comply with a subpoena
issued under this title, or should a party or witness refuse to testify on any
matter relevant to the investigation, examination, inquiry or hearing, the
Commissioner may apply to the High Court of American Samoa, which shall compel
obedience by proceeding for contempt as in the case of the crime of disobedience
of a subpoena issued from such court or a refusal to testify therein.
(e) The Commissioner has such additional powers
and duties as may be provided by the laws of
(f) The Commissioner is authorized to adopt rules
under the Administrative Procedure Act 4.1001 et seq., by which insurers
transacting motor vehicle liability insurance shall be required to participate
in an equitable, assigned risk arrangement for liability insurance coverage of
vehicles used in transportation of passengers for hire, including buses and
taxis.
History: 1974, PL 13-58 § 1;
1979, PL 16-3 § 4.
29.0206 Interpretation of
order of Commissioner.
(a)
Any finding, decision, or order of the Commissioner shall be deemed an order
within this title when it is in writing and adversely and directly affects any
person.
(b) No order of the Commissioner shall become
effective until it has become a final order as provided in subsection (c).
(c) An order of the Commissioner becomes a final
order:
(1) when confirmed or amended after a hearing as
provided in 29.0207;
(2)
if no hearing is requested, then automatically
on the tenth day after serving of notice.
History: 1974, PL 13-58 § 1.
29.0207 Cease and desist orders.
(a) Whenever the Commissioner has reason to
believe that any person has been engaged or is engaging or is about to engage
in any violation of the insurance law, he may issue an order, directed to that
person, to discontinue or desist from the violation or violations. The copy of
the order forwarded to the person involved must set forth the statement of the
specific charges and the fact that the person may request a hearing within 20
days of the date of mailing.
(b)
Where a hearing is requested, the Commissioner shall set a date for the hearing
to be held 30 days after receipt of the request, and shall give the person
involved written notice of the hearing date at least 7 days prior thereto. The
person requesting the hearing must establish to the satisfaction of the
Commissioner that the order should not be complied with. The order becomes
final 20 days after the date of mailing unless within the 20-day period the
person to whom it is directed files with the Commissioner a written request for
a hearing. To the extent applicable and not inconsistent with the foregoing,
the provisions of 4.1001 et seq., govern the hearing procedure in any judicial
review thereof. Where a hearing has been requested, the Commissioner’s order
becomes final at such time as the right to further hearing or review has
expired or been exhausted.
(c) No
order of the Commissioner under this section, or order of a court to enforce
the same, may in any way relieve or absolve any person affected by the order
from any liability under any other laws of the territory.
(d) The powers vested in the Commissioner pursuant
to this section are supplementary and not in lieu of any other power to suspend
or revoke certificates of authority or licenses to enforce any penalty, fines,
or forfeitures, authorized by law with respect to any violations for which an
order of discontinuance has been issued.
History: 1974, PL 13-58 §
1.
29.0208 Enforcement
of orders.
(a) If
any person fails to comply with any provision of the insurance law or any order
that has become final, or any action taken by the Commissioner, the
Commissioner may apply for the enforcement of the order to the High Court of
American Samoa. If the court determines that the order was made and served in
accordance with this title and is not arbitrary, capricious, or unreasonable,
and that the person has failed to comply therewith, the court shall enforce
obedience to the order by writ of injunction or otherwise enjoin upon the
person compliance with the order.
b) If the Commissioner has reason to believe
that any person has violated the insurance law or other law applicable to
insurance operations for which criminal prosecution is provided and in his opinion would be in
order, he shall give the information relative thereto to the Attorney General,
who shall promptly institute such action or proceedings against such person as
the information requires or justifies.
History: 1974, PL 13-58 § 1.
29.0209 Inquiries by
Commissioner to others.
The
Commissioner may address any proper inquiries to any insurer, licensee, or its
officers in relation to its activities or conditions or any other matter
connected with its transactions. Any person so addressed shall promptly and
truthfully reply in writing to the inquiries. The reply shall be verified by an
officer of that person if the Commissioner so requires. A reply is subject to
the penalties for false or misleading filings.
History: 1974, PL 13-58 § 1.
29.0210 Investigation of
persons transacting insurance.
The
Commissioner, whenever he deems it advisable in the interest of policyholders
or for the public good, shall investigate into the affairs of any person
engaged in, proposing to engage in, or claiming or advertising to engage in:
(1)
transacting insurance in this territory;
(2)
organizing or receiving subscriptions for, or disposing of the stock of, or in
any manner taking part in the formation or business of, an insurer; or
(3) holding capital stock of one or more insurers
for the purpose of controlling the management thereof as for the trustee or
otherwise.
History: 1974, PL
13-58 § 1.
29.0211 Examination of
insurers-Audit.
For
the purposes of determining its financial condition, ability to fulfill and
manner of fulfillment of its obligation, the nature of its operations, and
compliance with the insurance law, the Commissioner shall annually examine
every domestic insurer, including an audit of the financial affairs of each
insurer. The Commissioner may at any time make an examination of any insurer,
or a person holding capital stock of any insurer for the purpose of controlling
the management thereof as a voting trustee or otherwise, or both. Examination
of an alien insurer shall be limited to its insurance transactions, assets,
trust deposits and affairs within
History: 1974, PL 13-58 § 1.
29.0212 Records to be kept.
The
Commissioner shall keep and preserve in summary form a full record of all
proceedings, including all of his orders, findings and decisions and a full
statement of his reasons for arriving at and issuing them.
History: 1974, PL 13-58 § 1.
29.0213 Complaints-Determination
of public record.
No
complaint made to the Commissioner, or the record thereof, against any person
regulated by the insurance law may be deemed a public record or a public
writing. Neither the preliminary compliant pursuant to an investigation
authorized by the Commissioner nor the record thereof may be a public record or
public writing.
Each
written and signed complaint received by the Commissioner shall be recorded by
the Commissioner, including the subsequent disposition thereof, and maintained
for a period of not less than 7 years. The record of the complaint shall be
filed whenever applicable both by the name of the insurer and by the name of
the agent involved. The Commissioner shall consider the complaint before
issuing or continuing any certificate of authority or license of an insurer or
agent named in the complaint.
History: 1974, PL 13-58 § 1.
29.0214 False or misleading
filings with the Commissioner prohibited.
No
person may file or cause to be filed with the Commissioner any article,
certificate, report, statement, application or any other information required
or permitted to be so filed under the insurance law, which is misleading in any
material respect.
History: 1974, PL 13-58 § 1.
29.0215 Request for hearing.
Within
10 days after the serving of notice of any order by the Commissioner, any
person adversely and directly affected thereby may request a hearing thereon
before the Commissioner. A final order must be made within 10 days after the
final closing of the hearing. All hearings must be conducted pursuant to rules
set out in 4.1001 et seq.
History: 1974, PL 13-58 § 1.
29.0216 Promulgation of
regulations.
Regulations
may be promulgated not inconsistent with the law, as may be reasonably
necessary or appropriate for the administration of this title and other laws
of
History: 1974, PL 13-58 § 1.
29.0217 Annual reports.
The
Commissioner shall transmit to the Governor and to the Legislature, on or
before 1 July, of each year, a report containing a tabulated statement and
synopsis of the reports which have been filed in his office regarding the
condition of every admitted insurer; the general condition of insurance
business in American Samoa; a list of insurers whose business to current date
has been terminated and reason for the termination; a detailed statement of the
moneys, fees and taxes received by the Commissioner and from what source; and
other matters covering insurance for the last preceding calendar year.
History: 1974, PL 13-58 § 1.
Chapter 03
INSURERS-GENERAL
REQUIREMENTS
Sections:
29.0301 Required.
29.0302 Application.
29.0303 Continuance.
29.0304 Issuance or refusal.
29.0305 Evidence and ownership.
29.0306 Continuance, expiration, or reinstatement.
29.0307 Suspension or revocation-Mandatory grounds.
29.0308 Suspension or revocation-Discretionary and special grounds.
29.0309 Suspension, revocation, or refusal-Order-Effect on agent’s
authority.
29.0310 Suspension-Duration-Insurer’s obligations-Reinstatement.
29.0320 Fees.
29.0321 Maximum single risk.
29.0322 Required reserves.
29.0323 Withdrawal from American Samoa-Procedure.
29.0324 Violation-Penalty.
29.0301 Required.
(a) No person may transact
insurance in American
Samoa as an insurer without a certificate of authority issued by the
Commissioner and when the certificate is issued that person may not transact
any class of insurance which is not specifically authorized by his certificate.
(b)
The certificate may not be granted by the Commissioner until the applicant
conforms to the applicable requirements of this title and of the other laws of
History: 1974, PL 13-58 § 1.
29.0302 Application.
Any
person desiring to transact insurance business in
(1) a
copy of its charter, articles of association, articles of incorporation, or
other controlling instruments, certified by the official who is required to
keep or record the same in the jurisdiction under the laws of which the insurer
is organized, or incorporated;
(2) a
resolution adopted by its governing body in accordance with its bylaws or other
internal laws, consenting that service of process upon the Commissioner in any
action or proceedings against the insurer brought or pending in American Samoa
upon any cause of action arising in or growing out of business transacted in
American Samoa shall be valid personal service upon the insurer, irrevocable so
long as a policy of the company shall remain in force in American Samoa, or any
loss remains unpaid therein;
(3) a statement setting forth the location and
post office address of its principal office, and it shall continue until
changed by a similar statement filed with the Commissioner;
(4) a
statement of its financial condition and business in such form as prescribed
by, or acceptable to, the Commissioner, signed and sworn to by the president and
secretary or other principal officers of the insurer; if an alien insurer, the
statement shall comprise only its condition and business in the United States
and shall be signed and sworn to, in addition to its principal officers, by its
United States manager;
(5) if a foreign insurer, a copy of the last
report of examination certified to by the Commissioner, or like officer, of the
political subdivision in which the insurer is organized, or if alien, of the
political subdivision in which the United States branch is located, or other
proper supervisory official;
(6) a
good and sufficient bond, with a surety company approved by the
Commissioner with the applicant as
principal, in a form to be approved by the Commissioner, and running to the
Commissioner and his successor in office in the sum of $50,000, with the
condition that the surety on the bond shall be answerable up to the amount of
the bond for all judgments, decrees, or orders given, made or rendered against
the principal on the bond by the High Court of American Samoa for the payment
of money; in case of any breach of the condition of any bond, the Commissioner
may, and upon demand and receipt of satisfactory assurance for the payment of
costs shall, enforce the bond either in his own name or in the name of the
interested party thereto for the use and benefit of any person injured by the
breach; the surety on the above bond may withdraw from the same upon giving to
the Commissioner written notice of such intention not less than 60 days prior
to the date on which the then existing certificate of the principal insurer is
to expire, the withdrawal to then be effective on the date of expiration of the
certificate; in lieu of the bond as required by this section, the applicant may
deposit with the Commissioner acceptable
unencumbered securities or other unencumbered assets of the value of $50,000 as
surety subject to the same conditions as the bond;
(7) a resolution adopted by its governing body
in accordance with its bylaws or other internal laws consenting to be sued by
the injured person or his heirs or representatives in a direct action on any
policy of liability insurance in accordance with 29.1537, whether or not the
policy of insurance sued upon was written or delivered in American Samoa, and
whether or not the policy contains a provision forbidding direct action,
provided that the cause of action arose in American Samoa;
(8) such further information as the Commissioner
shall require by regulation specifically request from the applicant
History: 1974, PL 13-58 § 1.
29.0303 Continuance.
Unless
revoked by the Commissioner, every certificate shall continue in force subject
to the payment of continuance fees on or before 1 April of each year and the
filing of an affidavit setting forth that the insurer has continued to comply
with all applicable provisions of this part and other information as the
Commissioner may require by regulation or request specifically from the
insurer.
History: 1974, PL 13-58 § 1;
amd l98l, PL 17-9 § 1.
29.0304 Issuance or refusal.
(a)
The Commissioner shall issue to an insurer a certificate of authority if upon
completion of the application for a certificate of authority by the insurer the
Commissioner finds, from the application and any other investigation and information
he may acquire, that the insurer is fully qualified and entitled thereto under
the insurance law.
(b) The Commissioner shall take all necessary
action and shall either issue or refuse to issue a certificate of authority
within a reasonable time after the completion of the application for the
certificate.
(c)
The certificate of authority, if issued, shall specify the class or classes of
insurance the insurer is authorized to transact. The Commissioner may issue
authority limited to particular subclasses of insurance or types of insurance
coverage within the scope of a class of insurance.
History: 1974, PL
13-58 § 1.
29.0305 Evidence and
ownership.
(a) An
insurer’s subsisting certificate of authority is evidence of its authority to
transact the class or classes of insurance specified therein, either as direct
insurer or as reinsurer or as both.
(b)
Although issued to the insurer the certificate of authority is at all times
the property of the government. Upon any suspension, revocation or termination
thereof, the insurer promptly shall deliver the certificate of authority to
the Commissioner.
History: 1974, PL 13-58 § 1.
29.0306 Continuance,
expiration, or reinstatement.
(a) A certificate of authority shall continue in
force as long as the insurer is entitled thereto under the insurance law and
until suspended or revoked by the Commissioner or terminated at the request of
the insurer; subject, however, to continuance of the certificate by the insurer
each year by:
(1)
payment prior to 1 April of the continuation fee provided in 29.0320;
(2) due filing by the insurer of its annual
statement for the calendar year preceding.
(b) If not so continued by the insurer, its
certificate of authority shall expire at
(c)
The Commissioner, in his discretion, upon the insurer’s request made within 3
months after expiration, may reinstate a certificate of authority which the
insurer has permitted to expire after the insurer has cured all its failures
which resulted in the expiration and has paid the fee for reinstatement
specified in 29.0320. Otherwise the insurer shall be granted another certificate
of authority only after filing application therefor and meeting all other
requirements as for an original certificate of authority.
History: 1974, PL 13-58 § 1.
29.0307 Suspension or
revocation-Mandatory grounds.
(a)
The Commissioner shall refuse to continue, or shall suspend or revoke, an
insurer’s certificate of authority if:
(1) as a foreign insurer, it no longer meets the
requirements for the authority, or as a domestic insurer, it has failed to cure
an impairment of required capitalization within the time allowed therefor by
the Commissioner;
(2)
the insurer knowingly exceeds its charter powers or powers granted under its
certificate of authority; or
(3) as a foreign or alien insurer, its certificate
of authority to transact insurance is suspended or revoked in its domicile.
(b) Except in cases of impairment of required
capitalization or suspension or revocation by another domicile as referred to
in paragraph (a) (3), the Commissioner shall refuse, suspend, or revoke the
certificate of authority only after a hearing granted to the insurer unless the
insurer waives the hearing in writing.
History: 1974, PL 13-58 § 1.
29.0308
Suspension or
revocation- Discretionary and special grounds.
(a) The Commissioner may refuse to continue or may
suspend or revoke an insurer’s certificate of authority if he finds after a
hearing that the insurer:
(1) has
management which is untrustworthy, or so lacking in insurance experience as to
make the operation hazardous to the insurance buying public;
(2) has violated or failed to comply with any lawful order of the Commissioner, or any provision of the insurance law other than those for which suspension or revocation is mandatory;
(3) is in unsound condition, or in such condition or using such methods and practices in the conduct of its business, as to render its further transaction of insurance hazardous or injurious to its policyholders or to the public;
(4) has failed, after written request by the
Commissioner, to remove or discharge an officer or director who has been
convicted in any jurisdiction of an offense which, if committed in American
Samoa, constitutes a misdemeanor involving moral turpitude or a felony, or is
punishable by death or imprisonment under the laws of the United States in any
of which cases the record of his conviction shall be conclusive evidence;
(5) is affiliated with, and under the same general
management, interlocking directorate or ownership as, another insurer that
transacts direct insurance in
(6) refuses to be examined, or its directors,
officers, employees or representatives refuse to submit to examination relative
to its affairs, or to produce its accounts, records, and files for examination
by the Commissioner when required, or
refuses to perform any legal obligation relating to the examination;
(7) has failed to pay any final judgment rendered
against it upon any policy, bond, recognizance, or undertaking issued or guaranteed
by it, within 30 days after the judgment became final, or within 30 days after
time for taking an appeal has expired or within 30 days after dismissal of an
appeal before final determination, whichever date is the later.
(b) Without advance notice or a hearing thereon,
the Commissioner may suspend immediately the certificate of authority of any
insurer as to which proceedings for receivership, conservatorship,
rehabilitation, or other delinquency proceedings has been commenced in any
state by the public insurance supervisory official of that state.
History: 1914, PL 13-58 § 1.
29.0309 Suspension,
revocation, or refusal-Order-Effect on agent’s authority.
(a)
All suspensions or revocations of, or refusals to continue, an insurer’s
certificate of authority shall be by the Commissioner’s order.
(b) Upon suspending, revoking, or refusing to
continue the insurer’s certificate of authority, the Commissioner forthwith
shall give notice thereof to the insurer’s agents of record in the division,
and likewise shall suspend or revoke the authority of the agents to represent
the insurer. The Commissioner also shall give notice to the insurance
supervisory authority in jurisdictions in which the insurer is authorized, if
a domestic insurer, or in its domicile if a foreign or alien insurer.
(c) In his discretion, the Commissioner may
publish notice of the suspension, revocation, or refusal in one or more
newspapers of general circulation.
History: 1974, PL
13-58 § 1.
29.0310 Suspension-Duration-Insurer’s
obligations-Reinstatement.
(a)
Suspension of an insurer’s certificate of authority shall be for such period as
the Commissioner specifies in the order of suspension, but not to exceed 1
year for any 1 suspension order. During the suspension, the Commissioner may
rescind or shorten the suspension by his further order.
(b)
During the suspension period, the insurer shall not solicit or write any new
business, but shall file its annual statement and pay fees, licenses, and taxes
as required under the insurance law, and may service its business already in
force, as if the certificate of authority had continued in full force.
(c) Upon expiration of the suspension period, if
within that period the certificate of authority has not terminated, the
insurer’s certificate of authority automatically shall reinstate unless the
Commissioner finds that the causes of the suspension have not terminated, or
that the insurer is otherwise not in compliance with the requirements of the
insurance law, and the Commissioner shall give the insurer notice thereof not
less than 30 days in advance of the expiration of the suspension period.
(d) Upon reinstatement of the insurer’s
certificate of authority, the authority of its agents to represent the insurer
shall likewise reinstate. The Commissioner promptly shall notify the insurer
and its agents of record in the division of the reinstatement. If pursuant to
29.0309, the Commissioner has published notice of suspension, in like manner he
shall publish notice of the reinstatement.
History: 1974, PL 13-58 § 1.
29.0320 Fees.
(a) The Commissioner shall require the payment in
advance of the following fees:
(1) filing of applicant for certificate or
authority $100.00
(2) annual continuation fee 50.00
(3) filing of any other certificate, statement,
paper or exhibit required by this part
10.00
(4) filing of new application after refusal to
issue original certificate 75.00
(5) filing of application for issuance of certificate
after revocation or expiration
250.00
(6) filing of application for withdrawal 10.00
(7) furnishing copies of papers filed, per page .50
(8) certifying
copies of paper filed, per document 2.00
Fees paid in accordance with
this section shall not be refundable under any circumstances.
(b) All funds deriving from this section shall be
deposited in the general fund of the government.
History: 1974, PL 13-58 § 1.
29.0321 Maximum single risk.
The
maximum single risk which may be assumed by any insurer, after deduction of any
reinsurance taking effect simultaneously with the policy, shall be 10% of the
paid-in capital and surplus of the insurer; provided, however, that a corporate
insurer may assume any net single risk in excess of 10% of its capital and
surplus if it deposits with the Commissioner, prior to the assumption of the
risk, a collateral agreement and collateral security, both of which shall be
subject to approval by the Commissioner, in an amount not less than that proportion
in excess of the foregoing limitation.
History: 1974, PL 13-58 § 1.
29.0322 Required
reserves.
Every
insurer authorized to transact insurance, or transacting insurance, in
(1) loss or claim reserves in an amount estimated
in the aggregate to provide for the payment of all losses or claims insured,
whether reported or unreported, which are unpaid and for which such insurer may
be liable, together with an amount estimated to provide for the expense of
adjustment or settlement of such claims; and
(2) premium reserves equal to the unearned
portions of the gross premiums charged on unexpired or undetermined risks and
policies.
History: 1974, PL 13-58 § 1.
29.0323 Withdrawal from
American Samoa-Procedure.
(a) An insurer who desires to withdraw from
(b)
The application shall be accompanied by an affidavit of its principal officer
and general agent that:
(1) it desires to withdraw and to permanently
discontinue the transaction of the insurance business in
(2) all its outstanding policies have either
expired or have been reinsured, in which case it shall file an affidavit by the
reinsuring company stating that it has reinsured certain policies of the
withdrawing company and setting forth in detail the policies it has reinsured:
and that
(3) all existing claims arising out of insurance
transacted in
(c) It shall cause publication of a notice of its
intention to withdraw in a newspaper of general circulation in
(d) If any person objects to such withdrawal
within 1 week from date of last publication, and gives good and sufficient
cause thereof, the Commissioner may order that permission for the withdrawal be
refused.
(e) If the insurer has complied with the
provisions of this section and no objection has been made, or if objection is
made, but without good and sufficient cause, the Commissioner shall order
permission to withdraw, and the withdrawing insurer shall deliver to the
Commissioner for cancellation its certificate of authority and current licenses
of its agents and solicitors.
History: 1974, PL 13-58 § 1.
Case Notes:
Withdrawal” from “acting” not withdrawal
contemplated by this section. Zacha v. Liberty Mutual Insurance Co., ASR
(1978).
29.0324 Violation-Penalty.
Any
person violating this chapter is guilty of a misdemeanor, and shall upon
conviction be subject to a fine of not more than $1,000 if the person convicted
is a natural person, a fine of not more than $500, or imprisonment of not more
than 6 months, or both.
History: 1974, PL 13-58 § 1.
Chapter 04
UNIFORM
UNAUTHORIZED INSURERS ACT
Sections:
29.0401 Short title.
29.0402 Interpretation and construction.
29.0403 Representing or placing insurance with
unauthorized insurers prohibited.
29.0404 Aiding
unauthorized insurers prohibited.
29.0405 Representing
or aiding insured in effecting insurance on property or risk in unauthorized
state.
29.0406 Exceptions.
29.0407 Service of process-Interpretation.
29.0408 Service of process-Procedure and payment of fees.
29.0409 Service
of process-Validity.
29.0410 Service of process-Limitation or abridgement of rights.
29.0411 Certificate of authority required.
29.0412 Defense of action by unauthorized insurer.
29.0413 Violation-Penalty.
29.0401 Short title.
This chapter may be cited as
the “Uniform Unauthorized Insurers Act”.
29.0402 Interpretation and
construction.
This
chapter shall be so interpreted and construed as to effectuate its general
purpose to make uniform the law of those states and territories which enact it.
History: 1974, PL 13-58 § 1.
29.0403 Representing or
placing insurance with unauthorized insurers prohibited.
No person, corporation, association or partnership may, in this
Territory, act as agent for any insurer not authorized to transact business in
this Territory, or negotiate for or place or aid in placing insurance coverage
in this Territory for another with any such insurer.
History: 1974, PL 13-58 § 1.
29.0404 Aiding unauthorized
insurers prohibited.
No person, corporation, association, or partnership
may, in this Territory, aid any unauthorized insurer in adjusting insurance or
in transacting insurance business in this territory, either by fixing rates,
by adjusting or investigating losses, by inspecting or examining risks, by
acting as attorney-in-fact or as attorney for service of process, or otherwise,
except as provided in 29.0407 through 29.0410.
History: 1974, PL 13-58 § 1.
29.0405 Representing or
aiding insured in effecting insurance on property or risk in unauthorized
state.
No person, corporation, association, or partnership may make, negotiate for or place, or aid in negotiating or placing, any insurance contract in this territory for another who is an applicant for insurance covering any property or risk in another state, territory, or district of the United States with any insurer not authorized to transact insurance business in the state, territory, or district wherein such property or risk or any part thereof is located.
History:
1974, PL 13-58 § 1.
29.0406 Exceptions.
The
provisions of 29.0403 through 29.0405 do not apply to contracts of reinsurance
or to contracts of insurance covering risks of transportation and navigation,
or to contracts of insurance made through authorized surplus line brokers or
agents, nor do they apply to an insurer not authorized in this Territory, or
its representatives, in investigating, adjusting losses or otherwise complying
in this Territory with the terms of its insurance contracts made in a state
wherein the insurer was authorized and in which the property or risk was
located or residing at time of the execution of the contract.
History: 1974, PL 13-58 § 1.
29.0407 Service of
process-Interpretation.
The
transacting of business in this territory by a foreign or alien insurer without
a certificate of authority and the issuance or deliver by such foreign or alien
insurer of a policy or contract of insurance to a citizen of this Territory or
to a resident hereof, or to a corporation authorized to do business herein, is
equivalent to an appointment by such insurer to the Commissioner and his
successor or successors in office, to be its true and lawful attorney, upon
whom may be served all lawful process in any action, suit or proceeding arising
out of such policy or contract of insurance, and the issuance or delivery is a
signification of its agreement that any such service or process is of the same
legal force and validity as personal service of process in this Territory upon
it.
History: 1974, PL 13-58 § 1.
29.0408 Service of
process-Procedure and payment of fees.
Service
of process shall be made by delivering and leaving with the Commissioner, or to
some person in apparent charge of his office, 2 copies thereof and the payment
to him of such fees as may be prescribed by law. The Commissioner shall
forthwith mail by registered mail one of the copies of such process to the
defendant at his last known principal place of business and shall keep a record
of all processes so served upon him. Such service of process is sufficient
provided notice of such service and a copy of the process are sent within 10
days thereafter by registered mail by plaintiffs attorney to the defendant at
his last known principal place of business, and the defendant’s receipt, or
receipt issued by the post office with which the letter is registered, showing
the name of the sender at the letter and the name and address of the person to
whom the letter is addressed, and the affidavit of the plaintiffs attorney
showing a compliance herewith, are filed with the clerk of the High Court where
such action is pending on or before the date the defendant is required to
appear, or within such further time as the court may allow. However, no
plaintiff or complainant shall be entitled to a judgment by default, or a
judgment with leave to prove damages, or a judgment pro confessor under 29.0407
through 29.0410 until the expiration of 30 days from date of the filing of the
affidavit of compliance.
History: 1974, PL 13-58 § 1.
29.0409 Service of
process-Validity.
Service
of process in any such action, suit or proceedings is, in addition to the
manner provided in 29.0408, valid if served upon any person within this
Territory who, in this Territory, on behalf of such insurer, is soliciting insurance,
making any contract of insurance or issuing or delivering any policies or
written contracts of insurance, or collecting or receiving any premium for
insurance, and a copy of such process is sent within 10 days thereafter by
registered mail by the plaintiff’s attorney to the defendant at the last known
principal place of business of the defendant, and the defendant’s receipt, or
the receipt issued by the post office with which the letter is registered, showing
the name of the sender of the letter and the name and address of the person to
whom the letter is addressed, and the affidavit of the plaintiff’s attorney
showing a compliance herewith, are filed with the clerk of the High Court where
such action is pending on or before the date the defendant is required to
appear, or within such further time as the court may allow.
History: 1974, PL 13-58 § 1.
29.0410 Service of
process-Limitation or abridgement of rights.
Nothing
in 29.0407 through 29.0409 limits or abridges the right to serve any process,
notice or demand upon any insurer in any other manner now or hereafter
permitted by law.
History: 1974, PL
13-58 § 1.
29.0411 Certificate of
authority required.
No
unauthorized insurer may institute or file, or cause to be instituted or filed,
any suit, action or proceedings in this Territory to enforce any right, claim
or demand arising out of the transaction of business in this Territory until
such insurer has obtained a certificate of authority to transact insurance
business in this Territory.
History: 1974, PL 13-58 § 1.
29.0412 Defense of action by
unauthorized insurer.
(a) Before any unauthorized insurer may file or
cause to be filed any pleading in any action, suit or proceeding instituted
against it, such unauthorized insurer shall either:
(1) file with the clerk of the High Court a bond with
good and sufficient sureties, to be approved by the court, in an amount to be
fixed by the court sufficient to secure the payment of any final judgment which
may be rendered in such action; or
(2) procure a certificate of authority to transact
the business of insurance in this Territory.
(b) The court in any action, suit, or proceeding,
in which service is made in the manner provided in 29.0408 or 29.0409, may
order such postponement as may be necessary to afford the defendant reasonable
opportunity to comply with the provisions of subsection (a) and to defend such
action.
(c) Nothing in subsection (a) is to be construed
to prevent an unauthorized insurer from filing a motion to quash a writ or to
set aside service thereof made in the manner provided in 29.0408 or 29.0409 on
the ground either:
(1) that no policy or contract of insurance has
been issued or delivered to a citizen or resident of this Territory or to a
corporation authorized to do business therein; or
(2) that such insurer has not been transacting
business in this Territory; or
(3) that the person on whom service was made
pursuant to 29.0409 was not doing any or the acts therein enumerated.
History: 1974, PL 13-58 § 1.
29.0413 Violation-Penalty.
Any
person violating 29.0403 through 29.0412 is guilty of a class B misdemeanor and
shall upon conviction be sentenced accordingly.
History: 1974, PL 13-58 § 1;
amd 1980, PL 16-90 § 26.
Amendments: 1980
Amended to conform with penalties provided for in Title 46, Criminal Justice.
Chapters 05—09
(RESERVED)
Chapter 10
GENERAL
INSURANCE BROKERS
Sections:
29.1001 Commissioner responsible for regulation.
29.1002 Authority of Commissioner.
29.1003 Qualifications of brokers.
29.1004 Fees.
29.1005 Term of certificate.
29.1006 Revocation of certificate.
29.1007 Withdrawal from American Samoa.
29.1008 Permission to withdraw.
29.1009 Applications
for renewal-Payment of fees.
29.1010 Hearings-Judicial
review.
29.1011 Violation-Penalty.
29.1001 Commissioner
responsible for regulation.
The
responsibility for the regulation of general insurance brokers and the insurers
they do business with shall be with the Insurance Commissioner. The
Commissioner may delegate this responsibility, or any portion thereof, to his
deputies, assistants and other personnel as may be necessary.
History: 1978, PL, 15-79 § 2.
29.1002 Authority of
Commissioner.
The
Insurance Commissioner shall have the authority to adopt rules as he considers
necessary and appropriate to:
(1) interpret this chapter;
(2) regulate general insurance brokers and the
insurers they do business with; and
(3) protect the public from all potential harm and
abuses ranging from, but not limited to, the licensing of unscrupulous brokers
to the denial of assigned risk automobile coverage at rates based upon the
widest possible participation by admitted and nonadmitted carriers in any pool
which may be in effect.
History; 1978, PL, 15-79 §
2.
29.1003 Qualifications of
brokers.
(a) Every applicant for a certificate of authority
as a general insurance broker shall be required to submit the following with
the Insurance Commissioner:
(1) a copy of its charter, articles of
association, articles of incorporation, partnership agreement, or other
controlling instruments, certified by the official who is required to keep
those records in the jurisdiction where the applicant is incorporated,
organized, or otherwise doing business in a capacity similar to that of a
general broker as defined in this title;
(2) a resolution adopted by its governing body in
accordance with its bylaws or other internal law, stating that service of
process upon the Treasurer, in any action or proceeding against it brought or
pending out of business transacted in American Samoa, shall be valid personal
service upon the general insurance broker;
(3) a statement setting forth the location and
post office address of its principal office; and similar such statement anytime
the general insurance broker changes its principal office;
(4) a good and sufficient bond, with a surety
company approved by the Commissioner
with the applicant as principal, in a form to be approved by the
Commissioner, and running to the Commissioner or his successor in the office in
the sum of $10,000, with the condition that the surety on the bond shall be
answerable up to the amount of the bond for all judgments, decrees, or orders
given, made or rendered against the principal on the bond by the High Court of
American Samoa for the payment of costs, shall enforce the bond either in his
own name or in the name of the interested party thereto for the use and benefit
of any person injured by the breach; the surety on the above bond may withdraw
from it upon giving to the Commissioner written notice of his intention not
less than 60 days prior to the date on which the then existing certificate of
the general insurance broker is to expire, the withdrawal then is effective on
the date of expiration of the certificate; in lieu of the bond as required by
this section, the applicant may deposit with the Commissioner acceptable
unencumbered securities or other unencumbered assets of $10,000 as surety
subject to the same conditions as the bond;
(5) the name and complete information regarding
the financial stability, reputation, and integrity of any nonadmitted insurer
with whom such applicant has dealt or proposes to deal with in the transaction
of insurance business in American Samoa. The applicant shall provide, in
writing, so much of the information requested as he can produce, together with
a signed statement identifying the same and giving reasons for omissions, if
any. These are continuing obligations and must be complied with any time the
general broker proposes to deal with a nonadmitted insurer that he has not
previously obtained the Commissioner ’s approval to deal with. After due
examination of the information, the Commissioner shall identify those insurers
with whom the general broker may deal and set forth in writing the specific
reasons for rejecting others. The Commissioner may, if he finds it to be in the
public interest, order the general broker not to place or continue to place
further insurance business on property located, or operations conducted within
or on lives of persons residing in this territory with the non-admitted
insurer. Any placement of such insurance with a nonapproved, nonadmitted
insurer by a general broker shall subject him to the revocation or penalty, or
both provisions set forth in this chapter:
(6) other information as in the Commissioner’s
opinion would assist him in making his determination of the qualifications of
the applicant
(b) Within a reasonable time after having received
all of the necessary information, the Commissioner shall make a determination
of the applicant’s qualifications.
History: 1978, PL 15-79 § 2;
amd 1978, PL, 15-99.
Amendment: 1978
Subsection (a)(5): deleted the followings from the end of first sentence: and
resolutions by both the applicant and each of the nonadmitted insurers stating
that service of process upon the nonadmitted insurers may be made by serving
the general broker or in his absence, the Treasurer”.
29.1004 Fees.
The
fee schedule set forth in 29.0320, or any successor section, shall be
applicable to general insurance brokers.
History: 1978, PL, 15-79 §
2.
29.1005 Term of
certificate.
Certificates
of authority expire on 1 June each year unless revoked or withdrawn or unless
an application for renewal has been filed and a final decision is pending.
History: 1978, PL, 15-79 § 2.
29.1006 Revocation of
certificate.
The
Commissioner may revoke a certificate of authority if in his opinion:
(1) the general insurance broker no longer meets
the requirements for the authority;
(2) the general insurance broker knowingly exceeds
its charter powers or powers granted under its certificate of authority; or
(3) the general insurance broker’s actions are not
consistent with the public’s well being.
History: 1978, PL, 15-79 § 2.
29.1007 Withdrawal from
A
general insurance broker desiring to withdraw from
(1) it desires to withdraw and to permanently
discontinue the transaction of the general insurance brokerage business in
(2) all claims against it have been satisfied; and
(3) it has caused publication of its notice to
withdraw in a newspaper of general circulation in
History: 1978, PL, 1579 §
2.
29.1008 Permission to
withdraw.
If
within 1 week from the last publication as specified in paragraph (3) of
29.1007, the Commissioner does not find that any person has given good and
sufficient cause why an order permitting withdrawal should not be entered, he
shall order permission to withdraw, and the withdrawing general insurance
broker shall deliver to the Commissioner for cancellation its certificate of authority
and current licenses of its agents and solicitors.
History: 1978, PL 15-79 § 2.
29.1009 Applications for
renewal-Payment of fees.
Applications
for renewal and the payment of continuance fees are to be submitted on or before
1 April of each year. If there has been no change in the information required
for the previous year, the application may consist of a verified statement by
the principal officer to that effect. If there has been a change in the information
submitted for the previous year, the applicant shall identify and explain all
those changes in a verified statement by the principal officer.
History: 1978, PL
15-79 § 2.
29.1010 Hearings-Judicial
review.
Persons
adversely affected by a final order of the Commissioner may request a hearing
under the Administrative Procedure Act, 4.1001 et seq. Judicial review of orders must also be in
accordance with the Administrative Procedure Act.
History: 1978, PL, 15-79 § 2.
29.1011 Violation-Penalty.
A
person acting as, or holding himself out to be a certified general insurance
broker, who in fact is not, or who otherwise violates any provision of this
chapter, is guilty of a class B misdemeanor, and shall upon conviction be
sentenced accordingly.
History: 1978,
PL, 15-79 § 2: amd 1980, PL 16-90 § 27.
Amendments: 1980 Amended to
comply with penalties provided for in Title 46, Criminal Justice.
(RESERVED)
Sections:
29.1501 Limitation.
29.1502 Fire insurance.
29.1503 Marine insurance.
29.1504 Life insurance.
29.1505 Accident, sickness,
health, and liability insurance.
29.1506 Fidelity
and surety insurance.
29.1507 Motor
vehicle insurance.
29.1508 Title insurance.
29.1509 Workmen’s
compensation insurance.
29.1510 Annuity.
29.1511 Mortgage insurance.
29.1512 Property insurance.
29.1513 Miscellaneous.
II. Parties, Events and Interests
29.1520 Capacity to insure.
29.1521 Capacity to be insured.
29.1522 Insurable
interest-Generally.
29.1523 Insurable
interest-Measure of.
29.1524 Insurable
interest-Carrier or depository.
29.1525 Insurable
interest-Type of- Existence.
29.1526 Change of interest.
29.1527 Transfer of subject
matter insured.
III. Contents of Policy
29.1530 Filing and approval.
29.1531 Grounds
for disapproval of policy forms.
29.1532 Commissioner’s
withdrawal of approval.
29.1533 Information required.
29.1534 Signature.
29.1535 Coverage.
29.1536 Subsequent owner of interest.
29.1537 Liability policy direct action.
29.1538 Insolvency or bankruptcy.
29.1539 Open or valued policy.
29.1540 Approval of form.
29.1541 Assignment of policies.
29.1542 Policy constitutes entire contract.
29.1543 Charter and bylaw provisions.
29.1544 Payment discharges insurer.
29.1545 Regulation of sales material.
29.1550 Accrual of premium.
29.1551 Right to return of premium.
29.1552 Acknowledgment of receipt of premium.
V. Rates
29.1560 Approval.
29.1561 Standards.
29.1562 Rating bureaus.
29.1563 Disapproval of filings by Commissioner.
29.1564 Motor
vehicle insurance rates.
29.1565
Liability rates for buses and taxis.
29.1566 Violation-Penalty.
VI. Losses
29.1570 Perils
not insured against- Rescue efforts.
29.1571 Liability
of insurer-Negligence of insured.
29.1572 Notice
of loss.
29.1573 Preliminary
proof of loss.
29.1574 Waiver
of defects in notice or preliminary proof.
29.1575 Waiver of delay.
29.1576 Proof
by third person-Sufficient compliance.
29.1577 Failure
to pay loss, recovery of amount due, and damages.
29.1578 Total
loss by tire or miscellaneous insurance-Recovery of full amount.
VII. Double Insurance
29.1580 Definition.
29.1581 Contribution
by insurers.
VIII. Reinsurance
29.1590 Definition.
29.1591 Authorization.
29.1501 Limitation.
An
insurer authorized to do business in
History: 1974, PL 13-58 § 1.
29.1502 Fire
insurance.
Fire
insurance includes insurance upon buildings and other property against loss or
damage by fire, lightning, windstorms, cyclones, tornadoes, typhoons, hail or
earthquakes, water from the breakage or leakage of sprinkler pumps or other
apparatus erected for extinguishing fires, and water pipes; and against loss or
damage arising from the prevention or suspension of rent or use and occupation
of any building, plant, or manufacturing establishment, due to the hazard or
peril against which the insurance is carried.
History: 1974, PL 13-58 § 1.
29.1503 Marine
insurance.
Marine
insurance includes insurance upon ocean and inland risks, and transportation,
but not including any other casualty insurance as hereinafter provided.
History: 1974, PL 13-58 § 1.
29.1504 Life insurance.
Life
insurance includes insurance on all forms of life, endowments, and annuities,
but does not include health, accident, or sickness insurance or any other
casualty insurance as hereinafter provided.
History: 1974, PL 13-58 § 1.
29.1505 Accident, sickness,
health, and liability insurance.
(a) Accident insurance and sickness or health
insurance includes insurance against injury, disablement, or death resulting
from travel or general accident and against disablement resulting from
sickness, and every insurance appertaining thereto.
(b) Liability insurance includes all insurance
against loss or damage resulting from accident to, or injury, fatal or
nonfatal, suffered by, any person, and for which the insurer is liable.
History: 1974, PL 13-58 § 1.
29.1506 Fidelity and surety
insurance.
Fidelity
and surety insurance includes all guaranteeing of persons holding places of
public trust, and of the performance of contracts other than insurance
policies. It also includes the execution of all bonds, undertakings and contracts
of suretyship.
History: 1974, PL 13-58 § 1.
29.1507 Motor vehicle
insurance.
Motor
vehicle insurance includes all insurance on motor or motor driven vehicles,
except those operating on water or on rails, against loss or damage to or loss
of use of the vehicle or its tools, appliances or equipment, against local
liability for loss or damage to persons or property resulting through the
operation of the vehicle caused by fire, self-ignition, explosion, theft,
collision, or other insurance hazards, including hazards incident to
transporting the vehicle on land or water.
History: 1974, PL 13-58 § 1.
Research Guide:
For provisions regarding compulsory motor vehicle
insurance. see 22.2001 et seq.
29.1508 Title insurance.
Title
insurance includes insurance or guaranty of title to real or personal property
or any interest or encumbrance thereon, or of information relative to real
property, against loss by reason of defective titles, encumbrances, or adverse
claims of title, or otherwise.
History: 1974, PL
13-58 § 1.
29.1509 Workmen’s
compensation insurance.
Workmen’s
compensation insurance includes insurance against loss from liability imposed
by law upon employers to compensate employees and their dependents for injury
sustained by employees arising out of and in the course or scope of their
employment.
History: 1974, PL 13-58 § 1.
29.1510 Annuity.
“Annuity”
or “annuity policy” means any agreement to make periodic payments, whether
fixed or variable in amount, where the making of all or some of the payments,
or the amount of the payments, is dependent upon the continuance of human
life, except payments made pursuant to the settlement provisions of a life
insurance policy, and includes additional benefits operating to safeguard the
policy from lapse or to provide a special surrender value or special benefit or
annuity in the event of total and permanent disability of the annuitant.
History: 1974, PL 13-58 § 1.
29.1511 Mortgage insurance.
“Mortgage
insurance” means insurance against financial loss by reason of:
(1)
nonpayment of principal, interest and other sums agreed to be paid under the
terms of an obligation secured by a mortgage, deed, or trust, or other
instrument constituting a lien or charge on real or personal property; or
(2) nonpayment of rent and other sums agreed to be
paid under the terms of a written lease for the possession, use or occupancy of
real property, such insurance also being referred to as “lease insurance”.
History: 1974, PL 13-58 § 1.
29.1512 Property insurance.
“Property
insurance” means insurance on real or personal property of every kind and of
every interest therein, whether on land, water or in the air, against loss or
damage from any and all hazards or causes, and against consequential loss from
such loss or damage, other than non-contractual legal liability for loss or
damage. “Property insurance” does not include title insurance.
History: 1974, PL 13-58 § 1.
29.1513 Miscellaneous.
“Miscellaneous
insurance” includes insurance about any risk not included within or under any
of the classes listed in 29.1502 through 29.1512 in which there is a proper
subject for insurance, not prohibited by law or contrary to sound public
policy.
History: 1974, PL 13-58 § 1.
29.1520 Capacity
to insure.
Any
person capable of making a contract may be an insurer, subject to the
restrictions imposed by this part.
History: 1974, PL 13-58 § 1.
29.1521 Capacity to be
insured.
Except
as provided in 29.1520 through 29.1527, any contingent or unknown event,
whether past or future, which may damage any person having an insurable
interest, or create a liability against him, may be insured against, subject to
this title.
History: 1974, PL 13-58 § 1.
29.1522 Insurable
interest-Generally.
(a) Every interest in
property, or any relation thereto, or any liability in respect thereto, of such
a nature that a contemplated peril might directly damage the insured, is an
insurable interest. A mere contingent or expectant interest in anything, not
founded upon an actual right to or in the thing, nor upon any valid contract
for it, is not insurable.
(b) Every person has an insurable interest in the
life and health of:
(1) himself;
(2) any person upon whom he depends wholly or in
part for education or support;
(3) any person under a legal obligation to him
for the payment of money or respecting property or services, or whose death or
illness might delay or prevent performance;
(4) any person upon whose life any estate or
interest vested in him depends.
(c) If the insured has no insurable interest, the
contract is void.
History: 1974, PL 13-58 § 1.
29.1523 Insurable interest-Measure of.
Except
in the case of property held by the insured as a carrier or depository, the
measure of an insurable interest in property is the extent to which the insured
might be damaged by loss of, or injury to, the property.
History: 1974,
PL 13-58 § 1.
29.1524 Insurable interest-Carrier or depository.
A
carrier or depository of any kind has an insurable interest in a thing held by
him as such to the extent of its value.
History: 1974, PL 13-58 § 1.
29.1525 Insurable interest-Type of- Existence.
An
interest in property insured must exist when the insurance takes effect and
when the loss occurs, but need not exist in the meantime; and interest in the
life or health of a person insured must exist when the insurance takes effect,
but need not exist thereafter or when the loss occurs.
History: 1974, PL 13-58 § 1.
29.1526 Change of interest.
(a) Except in the cases herein specified, and in
the cases of life and disability insurance, a change of interest in any part of
a subject insured, unaccompanied by a corresponding change of interest in the
insurance, suspends the insurance to an equivalent extent until the interest in
the subject and the interest in the insurance are vested in the same person.
(b) A change of interest in a subject insured
after the occurrence of an injury which results in a loss does not affect the
right of the insured to indemnity for the loss.
(c) A change of interest in one or more of several
distinct subjects separately insured by one policy does not avoid the insurance
as to the others.
(d) A change of interest by will or succession, on
the death of the insured, does not avoid insurance; and his interest in the
insurance passes to the person taking his interest in the subject matter
insured.
(e) In the case of partners, joint owners, or
owners in common, who are jointly insured, a transfer of interest by one to
another thereof does not avoid insurance even though it has been agreed that
the insurance shall cease upon an alienation of the subject insured.
History: 1974, PL, 13-58 § 1.
29.1527 Transfer of subject matter insured.
The
mere transfer of subject matter insured does not transfer the insurance, but
suspends it until the same person becomes the owner of both the insurance and
the subject matter insured.
History: 1974, PL 13-58 § 1.
29.1530 Filing and
approval.
(a) Except where otherwise provided by law, no
basic policy form, application form (where written application is required and
is to be made a part of the policy), rider, endorsement or renewal certificate
form, may be delivered or issued for delivery until the form has been filed
with and is approved by the Commissioner. This section does not apply to:
(1) forms
of unique character which are designed for, and used with respect to, insurance
upon a particular risk or subject;
(2) forms issued at the request of a particular
life or health insurance policy owner or certificate holder and which relate
to the manner of distribution of benefits or to the reservation of rights and
benefits thereunder; or
(3) forms of group life or health insurance
policies, or both, which have been agreed upon as a result of negotiations
between the policyholder and the insurer.
(b) The Commissioner shall, within 30 days after
the filing of any form, approve or disapprove the form. The Commissioner shall
give written notice of his action to the insurer proposing to deliver the
form, and when a form is disapproved, the notice shall show wherein the form
does not comply with the law.
(c) The 30-day period referred to in subsection
(b) may be extended by the Commissioner for an additional period not to exceed
30 days if he gives written notice within the first 30-day period to the
insurer proposing to deliver the form that he needs the additional time for the
consideration of the form.
(d) The Commissioner may at any time request an
insurer to furnish him a copy of any form exempted under subsection (a).
History: 1974, PL 13-58 § 1.
29.1531 Grounds for
disapproval of policy forms.
The
Commissioner shall disapprove any form requiring his approval:
(1) if he finds it does not comply with the law;
(2) if he finds it contains any provisions,
including statement of premium, or has any label, description of its contents,
title, heading, backing or other indication of its provisions, which is
unintelligible, uncertain, ambiguous or abstruse, or likely to mislead a person
to whom the policy is offered, delivered or issued;
(3) if, in his judgment, its use would be prejudicial
to the interests of the insurer’s policyholders;
(4) if he finds it contains provisions which are
unjust, unfair, or inequitable;
(5) if he finds sales presentation material
disapproved by him is being used with respect to the form; or
(6) if, with respect to forms subject to approval,
he finds the benefits provided therein are not reasonable in relation to the
premium charged.
History: 1974, PL 13-58 § 1.
29.1532 Commissioner’s
withdrawal of approval.
The
Commissioner may, at any time after a hearing held not less than 20 days after
written notice to the insurer, withdraw his approval of any form on any ground
set forth in 29.1531. The written notice of the hearing shall state the reason
for the proposed withdrawal. No insurer may deliver any form after the
effective date of the withdrawal, which shall be as the Commissioner may
prescribe but not less than 30 days after the giving of notice of withdrawal.
History: 1974, PL 13-58 § 1.
29.1533 Information
required.
(a) The written instrument in which a contract of
insurance is set forth is the policy and it must contain the following
information:
(1) the parties between whom the contract is made;
(2) a description of the property, life, or
interest insured;
(3) the interest of the insured;
(4) the risk insured against;
(5) the period during which the insurance is to
continue;
(6) either a statement of the premium or, if the
insurance is of a character where the exact premium is only determinable upon
the termination of the contract, a statement of the basis and rates upon which
the final premium is to be determined and paid;
(7) the conditions and provisions pertaining to
the insurance;
(8) the time when the insurance thereunder takes
effect and the period during which the insurance is to continue.
(b) In addition, the policy may contain other
provisions not inconsistent with the insurance law and which are:
(1) required to be inserted by the laws of the
insurer’s domicile;
(2) necessary, on account of the manner in which
the insurer is constituted or operated, in order to state the rights and
obligations of the parties to the contract; or
(3) desired by the insured and neither prohibited
by law nor in conflict with any provisions required to be included therein,
and which are in each instance not less favorable in any respect to the insured
or beneficiary.
History: 1974, PL
13-58 § 1.
29.1534 Signature.
(a) All policies issued on risks in
(1) if the insurer is an admitted domestic
insurer, each policy shall be signed and subscribed by 2 of the major officers
of the insurer designated in its articles of incorporation or in its bylaws to
do so;
(2) if the insurer is an admitted foreign insurer,
it shall be signed and subscribed by 2 of the major officers of the insurer
authorized to do so and in all cases it shall be countersigned by the insurer’s
authorized resident general agent, or shall have attached thereto an
appropriate countersignature endorsement signed by the resident general agent;
(3) if the insurer is an admitted alien insurer it
shall be signed by its United States general manager or other person in charge
of its United States business if it has such officials, or if it does not, by 2
of the major officers of the insurer authorized to do so, and in all cases or
shall be countersigned by the insurer’s authorized resident general agent, or
shall have attached thereto an appropriate countersignature endorsement signed
by the resident general agent.
(b) Countersignatures by an authorized resident
general agent of the insurer originating a contract of insurance participated
in by other insurers as cosureties or coindemnitors shall satisfy all the
countersignature requirements in respect of the contract of insurance.
(c) The provisions of this section relating to
countersignature by an insurer’s authorized general agent shall not apply to:
(1) any contract of insurance covering any vessel
or aircraft used in interstate or foreign commerce, or covering any liability
or other risks incident to the ownership, maintenance, or operation thereof;
(2) any contract of reinsurance between any
insurance companies or other insurers;
(3) any contract of insurance covering any
property in interstate or foreign commerce, or any liability or risks incident
thereto.
History: 1974, PL
13-58 § 1.
29.1535 Coverage.
When
the name of the person intended to be insured is specified in a policy, it can
be applied only to his own interest.
History: 1974, PL 13-58 § 1.
29.1536 Subsequent owner of
interest.
A
policy may be so framed that it will insure to the benefit of whosoever, during
the continuance of the risk, becomes the owner of the interest insured.
History: 1974, PL 13-58 § 1.
29.1537 Liability policy
direct action.
On any
policy of liability insurance, the injured person or his heirs or
representatives has a right of direct action against the insurer within the
terms and limits of the policy, whether or not the policy of insurance sued
upon was written or delivered in American Samoa, and whether or not the policy
contains a provision forbidding direct action, provided that the cause of
action arose in American Samoa. The action may be brought against the insurer
alone, or against both the insured and insurer.
History: 1974, PL 13-58 § 1.
Case Notes:
On
causes of action arising in
Statute
granting a right of direct action against an insurer even if a policy forbids
such action must be liberally construed to enhance its public policy purpose of
allowing direct actions on liability insurance policies. A.S.C.A. § 29.1537.
Statutory right of direct action applies
to any policy of liability insurance.
A.S.C.A. § 29.1537.
Plaintiff
has a right of direct action against an insurance company. A.S.C.A. § 29.1537.
29.1538 Insolvency or
bankruptcy.
No
policy of liability insurance may be issued or delivered in American Samoa
unless it contains provisions to the effect that the insolvency or bankruptcy
of the insured may not release the insurer from the payment of damages for
injuries sustained or loss occasioned during the term of the policy, and that
in case execution against the insured is returned unsatisfied in any action
brought by the injured person or his heirs because of the insolvency or
bankruptcy, an action may be maintained by the injured person or his heirs or
representatives against the insurer within the terms and limits of the policy
for the amount of the judgment, not exceeding the amount of the policy.
History: 1974, PL 13-58 § 1.
29.1539 Open or valued
policy.
A
policy is either an open policy, which is one wherein the value of the subject
matter is not agreed upon but is left to be ascertained in case of loss, or a
valued policy, which is one containing on its face an expressed agreement that
the thing insured shall be valued at a specified sum. An open policy must not be written on real
property for fire insurance or miscellaneous insurance.
History: 1974, PL 13-58 § 1.
29.1540 Approval of form.
(a) An insurer may not use a policy form in
effecting insurance without first obtaining the Commissioner’s approval thereof
as provided in this section. The
Commissioner shall study each form for the purpose of guarding against any
possible fraud, misrepresentation or other forms of unfairness. If he approves
a form, he shall endorse his approval on the face of both duplicates and
transmit one to the insured and keep one in his permanent files. If he disapproves
a form, he shall issue an order of disapproval stating therein his reasons and
transmit a copy to the insurer.
(b) All policies and provisions therein must be
printed in a type of which the face is not smaller than 10-point.
History: 1974, PL 13-58 § 1.
29.1541 Assignment of
policies.
A
policy may be assignable or not assignable, as provided by its terms. Subject
to its terms relating to assignability, any life or health insurance policy
under the terms of which the beneficiary may be changed upon the sole request
of the insured or owner may be assigned, either by pledge or transfer of title,
by an assignment executed by the insured or owner alone and delivered to the
insurer, whether or not the pledgee or assignee is the insurer. Any such
assignment entitles the insurer to deal with the assignee as the owner or
pledgee of the policy in accordance with the terms of the assignment until the
insurer has received at its home office written notice of termination of the
assignment or pledge, or written notice by or on behalf of some other person
claiming some interest in the policy in conflict with the assignment.
History:
1974, PL 13-58 § 1.
29.1542 Policy
constitutes entire contract.
(a) Every contract of insurance must be construed
according to the terms and conditions of the policy. Where the contract is made
pursuant to a written application therefore, if the insurer delivers a copy of
the application with the policy to the insured, the application shall become a
part of the insurance policy. If the application is not so delivered to the
insured, it may not be a part of the insurance policy.
(b) If any life or health insurance policy is
reinstated or renewed, and the insured or assignee or beneficiary with a
vested interest under the policy makes written request to the insurer for a
copy of the application, if any, for reinstatement or renewal, the insurer
shall, within 30 days after the receipt at its home or branch office of the
request and of satisfactory evidence of the requesting beneficiary’s vested
interest, deliver or mail to the person making the request a copy of the
application. If the copy is not so delivered or mailed, the insurer shall be
precluded from introducing the application as evidence in any action based
upon or involving the policy or its reinstatement or renewal.
(c) This section does not apply to surety
insurance.
History: 1974, PL 13-58 § 1.
29.1543 Charter and bylaw provisions.
No
policy may contain any provision purporting to make a portion of the charter,
bylaws or other similar document of the insurer (other than the subscriber’s
agreement of power of attorney of a reciprocal insurer) a part of the contract
unless that portion is set forth in full in the policy. Any policy provision in
violation of this section is invalid.
History: 1974, PL 13-58 § 1.
29.1544 Payment discharges insurer.
Whenever the proceeds of, or payments under,
a life or health insurance policy become payable in accordance with the terms
of the policy or the exercise of any right or privilege under the policy, and
the insurer makes payment in accordance with the terms of the policy or m
accordance with any written assignment of the policy, the person so designated
as being entitled to the proceeds or payments shall be entitled to receive them
and to give full acquittance therefor, and the payments shall fully discharge
the insurer from all claims under the policy unless, before payment is made,
the insurer has received at its home office written notice by or on behalf of
some other person that the other person claims to be entitled to the proceeds
or payments or some interest in the policy.
History: 1974, PL 13-58 § 1.
29.1545 Regulation of sales material.
The
Commissioner, if he considers it necessary, may require the filing by an
insurer of any sales presentation material for use in the sale or the
presentation for sale of any policy. The Commissioner, within 30 days after the
filing of the sales presentation material, shall disapprove any sales
presentation material if he finds that, in whole or in part, it is false,
deceptive, or misleading. Upon disapproval, the sales presentation material
shall not be made, issued, circulated, displayed, or given other use by the
insurer or its agents.
History: 1974, PL 13-58 § 1.
29.1550 Accrual
of premium.
The insurer is entitled to
payment of the premium as soon as the subject matter insured is exposed to the
peril insured against.
History: 1974, PL 13-58 § 1.
29.1551 Right
to return of premium.
Unless
the insurance contract otherwise provides, a person insured is entitled to a
return of premium after a policy is cancelled or rescinded as provided herein:
(1) to the whole premium if no part of his
interest in the thing insured was exposed to any of the perils insured against;
(2) where the insurance is for a definite term,
and the insured surrenders his policy, to such proportion of the premium as
corresponds to the unexpired portion of the term after deducting from the
whole premium any claim for loss or damage which has previously accrued;
(3) when the contract is void or voidable on
account of the fraud or misrepresentation of the insurer;
(4) when the contract is void or voidable on
account of facts of the existence of which the insured was ignorant without his
fault;
(5) When, by any default of the insured other than
actual fraud, the insurer did not incur any liability under the policy.
History: 1974, PL 13-58 § 1.
29.1552 Acknowledgment of
receipt of premium.
An
acknowledgment in a policy of receipt of the premium is conclusive evidence of
its payment, so far as to make the policy binding, notwithstanding any
stipulation in the policy that it shall be binding until the premium is
actually paid.
History: 1974, PL 13-58 § 1.
V. Rates
29.1560 Approval.
(a) All rates, rate schedules, rate plans, and
methods of computing rates to be applied to any insurance transacted in
(b) No
insurer may use any rates in violation of this section, or alter, amend, or
otherwise change any rates without the approval of the Commissioner.
(c) No
insurer may charge any rate for any insurance transacted in
(d) A
filing shall be open to public inspection immediately upon submission to the
Commissioner.
History: 1974, PL 13-58 § 1; amd 1977, PL 15-29.
Amendment: 1977 subsection (c): substituted “in excess of the rate" for other
than the rate”.
29.1561 Standards.
An
insurer, in making rates, and the Commissioner in approving them, shall apply
the following standards:
(a)
Rates shall not be excessive or inadequate, as herein provided, nor shall they
be unfair or discriminatory.
(b) No
rate may be held excessive unless such rate is unreasonably high for the
insurance provided and a reasonable degree of competition does not exist in
(c) No rate may be held inadequate unless the rate
is unreasonably low for the insurance provided and the continued use of the
rate endangers the solvency of the insurer, or unless the rate is unreasonably
low for the insurance provided and the use of the rate by the insurer will have
the effect of destroying competition in
(d) Consideration must be given, to the extent
applicable, to past and prospective loss experiences, to prevailing hazards,
and to underwriting profits, contingencies, expenses and other normal business
requirements and factors, or used by the insurer, rating, or advisory organization,
does not comply with the requirements and standards of 29.1560 through 29.1565,
he shall, unless he has reason to believe the noncompliance is willful, give
notice in writing to the insurer, rating or advisory organization stating in
what manner the noncompliance is alleged to exist and specifying a time, not
less than 10 days after the date of mailing, in which the noncompliance must be
corrected.
History: 1974, PL 13-58 § 1.
29.1562 Rating bureaus.
Insurers
are authorized to become members or subscribers of rating bureaus, or advisory
organizations of a like nature and may use the rating systems, and underwriting
rules and policy forms of those organizations, provided they are not excessive,
inadequate or unfairly discriminatory, conform to the provisions of this part,
and are approved by the Commissioner prior to their use as provided.
History: 1974, PL 13-58 § 1.
29.1563 Disapproval of
filings by Commissioner.
(a) If, within the waiting period, the
Commissioner finds that a filing does not meet the requirements of 29.1560
through 29.1565, he shall send to the insurer or rating organization which made
the filing, written notice of disapproval of the filing, specifying therein in
what respects he finds the filing fails to meet the requirements and stating
that the filing shall not become effective.
(b) If the Commissioner has reason to believe that
an insurer, rating, or advisory organization or any rate, rating plan, or
rating system made
History:
1974, PL 13-58 § 1.
29.1564 Motor vehicle
insurance rates.
The
following chart indicates the maximum allowable annual motor vehicle liability
rates:
Type Surcharge .00 +.40 +.90 +l .50
+2.20
Private $187.50 $262.50 $356.25 $468.75 $600.
Points 0 1 2 3 4
Commercial
& Fleet 231.25
Rentals 375.
Motorcycles & Motorbikes 56.25 78.75 106.25 140.00 142.50
The points referred to
are under the “Safe Driver Plan” referred to under the study conducted for the
insurance commission by Mr. Clifford Miyoi entitled “Automobile Insurance
Problems in
These
rates are effective with policies written to cover periods commencing on
History: 1978,
PL 15-93 § 1, amd 1979, PL 16-3 § 1; amd 1989 PL 21-3.
Amendments: 1979 deleted
bus and taxi rates.
29.1565 Liability rates for
buses and taxis.
(a) Annual maximum motor vehicle liability rates
for buses and taxis are as follows:
Points
0 1 2
Rates $350 $450 $600
Points shall be
calculated in the same manner as provided in 29.1564 for private vehicles,
except that:
(1) the points shall be the total points of both
the owner and all other operators of the vehicle. The owner shall identify all
operators of the vehicle in the application for insurance.
(2) the rates shall apply to each vehicle to be
insured.
(b) No person who has accumulated more than 2
points under the provisions of this section shall operate a bus or taxi.
(c) The Insurance Commissioner is authorized,
upon notice and opportunity for hearing afforded to the owner and the insurance
carrier issuing vehicle liability insurance in accordance with the
Administrative Procedure Act, 4.1025 through 4.1034, to require the insurance
carrier to cancel, revoke or suspend the operation of the motor vehicle
liability policy of insurance covering any bus or taxi which is operated by a
person who has accumulated more than 2 points under the provisions of this
section. The cancellation, revocation or suspension may extend up to the
remaining period of the insurance policy then in effect, and to any or all
buses or taxis then owned and operated by the owner.
History: 1979, PL
16-3 § 2.
Research Guide: For
assigned risk rules, see subsection (f) of 29.0205.
29.1566 Violation-Penalty.
Any
person violating 29.1560 through 29.1564 is guilty of a class B misdemeanor,
and shall, upon conviction, be sentenced accordingly.
History: 1974,
PL 13-58 § 1, amd 1980, PL 16-90 § 28.
Amendments: 1980 Amended to
conform with penalties provided for in Title 46, Criminal Justice.
29.1570 Perils not insured
against-Rescue efforts.
An
insurer is liable:
(1) when the thing insured is rescued from a peril
insured against and which would otherwise have caused a loss if in the course
of the rescue, the thing is exposed to a peril not insured against, and which
permanently deprives the insured of its possession, in whole or in part:
(2) if a loss is caused by efforts to rescue the
thing insured from a peril insured against.
History: 1974, PL 13-58 § 1.
29.1571 Liability of
insurer—Negligence of insured.
An
insurer is not liable for a loss caused by the willful act of the insured; but
the insurer is not exonerated by the negligence of the insured or of the
Insured’s agents or others.
History: 1974, PL 13-58 § 1.
29.1572 Notice of loss.
Failure
to give notice of loss covered by any insurance within any period provided for
by the policy or otherwise may not exonerate the insurer if the notice is given
within a reasonable time after the insured has or should have first knowledge
of the loss. In classes of insurance, except marine and fire, the insured shall
have at least 10 days after the event within which to give notice of loss. No
requirement of notice within a lesser period is valid.
History: 1974, PL 13-58 § 1.
29.1573 Preliminary proof
of loss.
When
preliminary proof of loss is required by a policy, the insured is not bound to
give such proof as would be necessary in a court of justice, but it is sufficient for him
to give the best evidence in his power at the time.
History: 1974, PL
13-58 § 1.
29.1574 Waiver of defects
in notice or preliminary proof.
All
defects in a notice of loss, or in preliminary proof thereof, which the
insured might remedy, and which the insurer omits to specify to him, without
unnecessary delay, as ground of objection, are waived.
History: 1974, PL 13-58 § 1.
29.1575 Waiver of delay.
Delay
in the presentation to an insurer of notice, or preliminary proof of loss, is
waived if caused by an act of the insurer, or if he omits to make objection
promptly and specifically upon that ground.
History: 1974, PL 13-58 § 1.
29.1576 Proof by third
person-Sufficient compliance.
If a
policy requires, by way of preliminary proof of loss, the certificate or
testimony of a person other than the insured or beneficiary, there is
sufficient compliance with the requirement if the insured or the beneficiary
uses reasonable diligence to procure the certificate or testimony, and in case
of refusal to give it to him, furnishes reasonable evidence to the insurer that
the refusal was not induced by just grounds of disbelief in the facts necessary
to be certified or testified to.
History: 1974, PL 13-58 § 1.
29.1577 Failure to pay
loss, recovery of amount due, and damages.
In all
cases where loss occurs and the insurer liable therefor fails to pay the same
within the time specified in the policy, after demand made therefor, the insurer
is liable to pay the holder of the policy, in addition to the amount of such
loss, 12% damages upon the amount of the loss, together with all reasonable
attorney’s fees for the prosecution and collection of the loss, the attorney’s
fees to be taxed by the court where the matter is heard on original action, by
appeal or otherwise, and to be taxed as a part of the costs therein, and
collected as other costs are or may be by law collected. Writs of attachment or
garnishment filed or issued after proof of loss or death has been received by
the insurer shall not defeat the provisions of this section, provided the
insurer desiring to pay the amount of the claim as shown in the proof of loss
or death may pay the amount into the registry of the court after issuance of
writs of attachment and garnishment, in which event there shall be no further
liability on the part of the insurer.
History: 1974, PL 13-58 § 1.
29.1578 Total loss by fire
or miscellaneous insurance-Recovery of full amount.
A fire
or miscellaneous insurance policy, in case of a total loss of any risk insured
under the classes specified in this chapter as fire or miscellaneous insurance,
must be held and considered to be a liquidated demand against the insurer
taking the risk for the full amount stated in the policy, or the full amount
upon which the insurer charges, collects or receives a premium; provided the
provisions of 29.1570 through 29.1578 may not apply to personal property. In
the event of a total loss or destruction of any personal property on which the
amount of the appraisal or agreed loss is less than the total amount insured
thereon, the insurer shall return to the insured the unearned premium for the
excess of insurance over the appraised or agreed loss, to be paid at the same
time and in the same time and manner as the loss shall be paid, and the
unearned premium shall be a just and legal claim against the insurer.
History: 1974, PL 13-58 § 1.
29.1580 Definition.
Double
insurance exists when the same person is insured by several insurers separately
in respect to the same subject, interest and risk.
History: 1974, PL 13-58 § 1.
29.1581 Contribution by
insurers.
In
case of double insurance, the several insurers are liable to pay losses thereon
as follows:
(a) In
fire and miscellaneous insurance, each insurer shall contribute ratably without
regard to the dates of the several policies.
(b) In
marine insurance, the liability of the several insurers for a total loss,
whether actual or constructive, where the policies are not simultaneous, is in
the order of the dates of the several policies. No liability attaches to a
second or other subsequent policy, except as to the excess of the loss over the
amount of all previous policies on the same interest. If 2 or more policies
bear the same date, they are deemed to be simultaneous, and each insurer on
simultaneous policies shall contribute ratably. The insolvency of any of the
insurers does not affect the proportionate liability of the other insurers. All
insurers on the same marine interest shall contribute ratably for a partial or
average loss.
History: 1974, PL
13-58 § 1.
VIII. Reinsurance
29.1590 Definition.
A
contract of reinsurance is one by which an insurer procures a third person to
insure him against loss or liability by reason of such original insurance.
History: 1974, PL 13-58 § 1.
29.1591 Authorization.
No
admitted insurer may reinsure with any other insurer who has not been
previously admitted in
History: 1974, PL 13-58 § 1.