20-1095.03 Qualifications for permit

20-1095.03. Qualifications for permit

A. The director shall not issue a permit to a service company unless all of the following conditions are met:

1. The applicant is solvent and organized under the laws of this state or another state, district, territory or possession of the United States.

2. The applicant furnishes proof as necessary to the director that the directors and management of the service company are competent and are capable of successfully managing the service company's affairs in compliance with law.

3. The applicant either:

(a) Files a surety bond or an alternative to a surety bond as required by section 20-1095.04.

(b) Is insured by a mechanical reimbursement insurance policy issued by an insurer authorized to do business in this state and provides a copy of the policy to the director.

4. The applicant is in compliance and continues to be in compliance with all applicable laws.

5. The applicant pays the initial fee prescribed in section 20-167.

B. This article does not require the director to determine the actual financial condition or claims practices of any service company.  The issuance of a service company permit indicates only that the entity appears to be financially sound and to have satisfactory claims practices and that the director has no credible evidence to the contrary.