Unauthorized Insurers - Prohibitions, Process and Advertising

Wyo. Stat. Ann. tit. 26, ch. 12

in effect

Wyo. Stat. Ann. § 26-12-101 "Industrial insured" defined.

(a) As used in this chapter: (i) "Industrial insured" means an insured: (A) Which procures the insurance of any risk other than life and annuity contracts through the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; (B) Whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000.00); and (C) Which has at least twenty-five (25) full-time employees.

Wyo. Stat. Ann. § 26-12-102 Representing or aiding unauthorized insurers prohibited; exceptions.

(a) No person in this state shall: (i) Act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact insurance in this state, in the: (A) Solicitation, negotiation, procurement or carrying out of insurance or annuity contracts or the renewal thereof; (B) Forwarding of applications for insurance; (C) Dissemination of information as to coverage or rates; (D) Inspection of risks; (E) Fixing of rates; (F) Investigation or adjustment of claims or losses; or (G) Collection or forwarding of premiums. (ii) In any other manner represent or assist that insurer in transacting insurance with respect to subjects of insurance resident, located or to be performed in this state. (b) This section does not apply to: (i) Matters the commissioner authorizes under W.S. 26-12-201 through 26-12-206; (ii) Surplus lines insurance and other transactions for which the insurer is not required to have a certificate of authority pursuant to W.S. 26-3-102; (iii) A licensed adjuster or attorney-at-law representing an unauthorized insurer in his professional capacity; (iv) Persons in this state compensated solely by salary, who secure and furnish information for the purpose of enrolling individuals in, or issuing certificates under, or otherwise assisting in administering group life, group or blanket disability or annuity contracts lawfully solicited, issued and delivered in and pursuant to the laws of a state in which the insurer is authorized to transact business; (v) Transactions in this state involving contracts of insurance issued to one (1) or more industrial insureds.

Wyo. Stat. Ann. § 26-12-103 Suits by unauthorized insurers prohibited.

As to transactions not permitted under W.S. 26-3-102, no unauthorized insurer shall institute or file or cause to be instituted or filed, any suit, action or proceeding in this state to enforce any right, claim or demand arising out of any insurance transaction in this state, until the insurer obtains a certificate of authority to transact that insurance in this state.

Wyo. Stat. Ann. § 26-12-201 Short title; interpretation of article.

(a) This article constitutes and may be cited as the "Unauthorized Insurers Process Act". (b) This article shall be so interpreted as to carry out its general purpose to make uniform the laws of those states which enact it.

Wyo. Stat. Ann. § 26-12-202 Commissioner as agent for service.

(a) Solicitation, carrying out or delivery of any insurance contract, by mail or otherwise, within this state by an unauthorized insurer, or the performance within this state of any other service or transaction connected with insurance by or on behalf of the insurer: (i) Constitutes the insurer's appointment of the commissioner and his successors in office as its attorney, upon whom may be served all lawful process issued within this state in any action or proceeding against the insurer arising out of any such contract or transaction; and (ii) Signifies the insurer's agreement that any such service of process has the same legal effect and validity as personal service of process upon it in this state.

Wyo. Stat. Ann. § 26-12-203 Service of process generally.

(a) Service of process upon any insurer pursuant to W.S. 26-12-202 shall be made in accordance with W.S. 26-3-122, and service of process is sufficient if it complies with that section. (b) Service of process in any such action, suit or proceeding, in addition to the manner provided in subsection (a) of this section, is valid if: (i) Served upon any person within this state, who in this state on behalf of the insurer, is: (A) Soliciting insurance; (B) Making any contract of insurance or issuing or delivering any policies or written contracts of insurance; or (C) Collecting or receiving any premium for insurance; and (ii) Otherwise complies with W.S. 26-3-122(d). (c) No plaintiff or complainant is entitled to a judgment by default under this section until the expiration of thirty (30) days from the date of the filing of the affidavit of compliance. (d) Nothing in this section limits or abridges the right to serve any process, notice or demand upon any insurer in any other manner permitted by law.

Wyo. Stat. Ann. § 26-12-204 Exemptions from service of process provisions.

(a) W.S. 26-12-202 and 26-12-203 do not apply to surplus line insurance lawfully carried out under chapter 11, or to reinsurance, or to any action or proceeding against an unauthorized insurer arising out of any of the following if the policy or contract contains a provision designating the commissioner as its attorney for the acceptance of service of lawful process in any action or proceeding instituted by or on behalf of an insured or beneficiary arising out of that policy, or if the insurer enters a general appearance in any such action: (i) Wet marine and transportation insurance; (ii) Insurance on subjects located, resident or to be performed wholly outside this state, or on vehicles or aircraft owned and principally garaged outside this state; (iii) Insurance on property or operations of railroads engaged in interstate commerce; or (iv) Insurance on aircraft or cargo of that aircraft, or against liability, other than employer's liability, arising out of the ownership, maintenance or use of that aircraft.

Wyo. Stat. Ann. § 26-12-205 Defense of action by unauthorized insurer.

(a) Before an unauthorized insurer files or causes to be filed any pleading in any action or proceeding instituted against it under W.S. 26-12-202 and 26-12-203, that insurer shall: (i) Procure a certificate of authority to transact insurance in this state; or (ii) Deposit with the clerk of the court in which the action or proceeding is pending cash or securities, or file with the clerk a bond with good and sufficient sureties, to be approved by the court, in an amount the court fixes sufficient to secure the payment of any final judgment which may be rendered in the action, except that the court may make an order dispensing with the deposit or bond if the insurer shows to the court's satisfaction that it: (A) Maintains in a state of the United States funds or securities sufficient and available to satisfy any final judgment which may be entered in the action or proceeding; and (B) Will pay any final judgment entered therein without requiring suit to be brought on the judgment in the state where the funds or securities are located. (b) The court in any action or proceeding in which service is made in the manner provided in W.S. 26-12-203 may order a postponement as necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection (a) of this section and to defend the action. (c) Nothing in subsection (a) of this section prevents an unauthorized insurer from filing a motion to quash or to set aside the service of any process made in the manner provided in W.S. 26-12-203 on the ground either: (i) That the unauthorized insurer did not engage in any of the acts enumerated in W.S. 26-12-202; or (ii) That the person on whom service was made pursuant to W.S. 26-12-203 was not engaged in any of the acts enumerated in W.S. 26-12-202.

Wyo. Stat. Ann. § 26-12-206 Attorney fees in actions against unauthorized insurer.

In any action against an unauthorized insurer, if the insurer fails for thirty (30) days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that the refusal is without reasonable cause, the court shall allow to the plaintiff a reasonable attorney fee and include that fee in any judgment that may be rendered in the action. The fee shall not be less than one hundred dollars ($100.00). Failure of an insurer to defend any such action is prima facie evidence that its failure to make payment was without reasonable cause.

Wyo. Stat. Ann. § 26-12-301 Short title.

This article constitutes and may be cited as the "Unauthorized Insurers False Advertising Process Act".

Wyo. Stat. Ann. § 26-12-302 False advertising prohibited; notification by commissioner of misrepresentation.

No unauthorized insurer, in any manner, shall misrepresent to any person in this state as to its financial condition or the terms of any contract issued or to be issued by it or the advantages thereof, or the dividends or share of the surplus to be received thereon. If the commissioner believes that any unauthorized insurer is misrepresenting any of the items specified in this section, he shall notify the insurer and the insurance supervisory official of the insurer's domiciliary state or province by registered or certified mail.

Wyo. Stat. Ann. § 26-12-303 Enforcement by commissioner; penalty for violation.

(a) If within thirty (30) days following the giving of the notice specified in W.S. 26-12-302 the insurer has not ceased dissemination of any false advertising, and if the commissioner believes that the insurer is soliciting, issuing or delivering contracts of insurance to residents of this state or collecting premiums on those contracts or performing any other transaction in connection with that insurance, and that a proceeding by him in respect to those matters would be in the public interest, he shall take action against the insurer under W.S. 26-13-117. (b) If pursuant to the proceeding the commissioner finds that the dissemination of false advertising is continuing, he shall order the insurer to desist therefrom and shall mail a copy of the order by certified or registered mail to the insurer at its principal place of business last of record with the commissioner and to the insurance supervisory official of the insurer's domiciliary state or province. Each violation after mailing of the desist order subjects the insurer to a penalty of two thousand dollars ($2,000.00), to be recovered by a civil action the commissioner brings against the insurer. Service of process upon the insurer in the action may be made upon the commissioner pursuant to W.S. 26-12-202 and 26-12-203 or in any other lawful manner.

Source: WY Statutes (Official Site)URL: https://wyoleg.gov/statutes/compress/title26.pdfFetched: 10/4/2026