WM. PRESTON LANE, JR., GOVERNOR. 1097

"Unauthorized Insurers Process Act", said new sections
to be known as Sections 273-278 and all to read as follows:

Unauthorized Insurers Process Act.

273. (Purpose of Sub-title. ) The purpose of this sub-
title is to subject certain insurers to the jurisdiction of
courts of this State in suits by or on behalf of insureds or
beneficiaries under insurance contracts. The legislature
declares that it is a subject of concern that many residents
of this state hold policies of insurance issued or delivered
in this State by insurers not authorized to do business in
this State, thus presenting to such residents the often
insuperable obstacle of resorting to distant forums for the
purpose of asserting legal rights under such policies. In
furtherance of such state interest, the legislature herein
provides a method of substituted service of process upon
such insurers and declares that in so doing it exercises its
power to protect its residents and to define, for the purpose
of this statute, what constitutes doing business in this
State, and also exercises powers and privileges available to
the State by virtue of Public Law 15, 79th Congress of the
United States, Chapter 20, 1st. Sess., S. 340, as amended,
which declares that the business of insurance and every
person engaged therein shall be subject to the laws of the
several states.

274. (Service of Process upon Unauthorized Insurer. )
(a) Any of the following acts in this state, effected by
mail or otherwise, by an unauthorized foreign or alien
insurer: (1) the issuance or delivery of contracts of insur-
ance to residents of this state or to corporations author-
ized to do business therein, (2) the solicitation of applica-
tions for such contracts, (3) the collection of premiums,
membership fees, assessments or other considerations for
such contracts, or (4) any other transaction of insurance
business, is equivalent to and shall constitute an appoint-
ment by such insurer of the Insurance 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 instituted by or on behalf of
an insured or beneficiary arising out of any such contract
of insurance, and any such act shall be signification of
its agreement that such service of process is of the same
legal force and validity as personal service of process in
this state upon such insurer.

(b) Such service of process shall be made by delivering
to and leaving with the Insurance Commissioner or some