Unauthorized Insurers Act Law and Legal Definition

Unauthorized Insurers Act is a state legislature. This Act has been adopted by some states in the U.S. The aim of this Act is to ensure protection to residents holding insurance policies by insurers who are not authorized to do business in the state that has adopted the Act

The protection includes:

1.maintaining fair and honest insurance markets;

2.protecting the premium tax revenues of the state;

3. protecting authorized persons and insurers;

4.protecting against evasion of the insurance regulatory laws of the state.

The following is an example of a state statute (Nebraska) explaining the purpose of Unauthorized Insurers Act:

R.R.S. Neb. § 44-2001 the purpose of the Unauthorized Insurers Act is to subject certain insurers to the jurisdiction of the Department of Insurance and the courts of this state in administrative proceedings and in suits by or on behalf of the state. The Legislature declares that it is concerned with the protection of residents of this state against acts by insurers not authorized to do an insurance business in this state, by the maintenance of fair and honest insurance markets, by protecting authorized insurers which are subject to regulation from unfair competition by unauthorized insurers, and by protecting against the evasion of the insurance regulatory laws of this state. In furtherance of such state interest, the Legislature exercises its powers to protect residents of this state and to define what constitutes transacting an insurance business in this state and also exercises powers and privileges available to this state.