(1) No certificate of authority or license to transact any kind of insurance business
in this state shall be issued, renewed or continued in effect to any domestic, foreign,
or alien insurance company or other insurance entity which is owned, or financially
controlled in whole or in part by any state of the United States, or by a foreign
government or by any political subdivision of either, or which is an agency of such
state, government or political subdivision, unless such company or entity was so owned,
controlled or constituted prior to January 1, 1957, and was authorized to do business
in this state on or prior to January 1, 1957.
(2) The commissioner shall not grant or continue authority to transact insurance
in this state to any insurer or proposed insurer after a hearing held thereon, if
it appears that:
(a) Any director, officer or other individual materially part of the management is
found by the commissioner after investigation or upon reliable information to be incompetent,
or dishonest, or untrustworthy, or of unfavorable business repute; or
(b) The managers are so lacking in insurance company managerial experience in operations
of the kind proposed in this state as to make such operation, currently or prospectively,
hazardous to or contrary to the best interests of the insurance-buying or investing
public of this state; or
(c) The commissioner has good reason to believe it is affiliated directly or indirectly
through ownership, control, management, reinsurance transactions or other business
relations with any person or persons of unfavorable business repute; or
(d) Its business operations are or have been marked, to the injury of insurers, stockholders,
policyholders, creditors or the public, by illegality, or by manipulation of assets,
or of accounts, or of reinsurance, or by bad faith.
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