--- kind: "section" citation: "15 U.S.C. § 6733" title: "15" title_heading: "Commerce and Trade" number: "6733" heading: "Effect on State laws restricting redomestication" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/15/6733" units: - "Chapter 93 — Insurance" - "Subchapter II — Redomestication of Mutual Insurers" --- # §6733. Effect on State laws restricting redomestication - (a) **In general—** Unless otherwise permitted by this subchapter, [State laws](/usc/15/6735.md?p=13) of any [transferor domicile](/usc/15/6735.md?p=15) that conflict with the purposes and intent of this subchapter are preempted, including but not limited to— - (1) any law that has the purpose or effect of impeding the activities of, taking any action against, or applying any provision of law or regulation to, any insurer or an affiliate of such insurer because that insurer or any affiliate plans to redomesticate, or has redomesticated, pursuant to this subchapter; - (2) any law that has the purpose or effect of impeding the activities of, taking action against, or applying any provision of law or regulation to, any insured or any [insurance licensee](/usc/15/6735.md?p=3) or other intermediary because such [person](/usc/15/6735.md?p=7) has procured insurance from or placed insurance with any insurer or affiliate of such insurer that plans to redomesticate, or has redomesticated, pursuant to this subchapter, but only to the extent that such law would treat such insured licensee or other intermediary differently than if the [person](/usc/15/6735.md?p=7) procured insurance from, or placed insurance with, an insured licensee or other intermediary which had not redomesticated; and - (3) any law that has the purpose or effect of terminating, because of the [redomestication](/usc/15/6735.md?p=11) of a [mutual insurer](/usc/15/6735.md?p=6) pursuant to this subchapter, any certificate of authority, agent appointment or license, rate approval, or other approval, of any [State insurance regulator](/usc/15/6735.md?p=12) or other [State](/usc/15/15g.md?p=2) authority in existence immediately prior to the [redomestication](/usc/15/6735.md?p=11) in any [State](/usc/15/15g.md?p=2) other than the [transferee domicile](/usc/15/6735.md?p=14). - (b) **Differential treatment prohibited—** No [State law](/usc/15/6735.md?p=13), regulation, interpretation, or functional equivalent thereof, of a [State](/usc/15/15g.md?p=2) other than a [transferee domicile](/usc/15/6735.md?p=14) may treat a redomesticating or [redomesticated insurer](/usc/15/6735.md?p=9) or any affiliate thereof any differently than an insurer operating in that [State](/usc/15/15g.md?p=2) that is not a redomesticating or [redomesticated insurer](/usc/15/6735.md?p=9). - (c) **Laws prohibiting operations—** If any [licensed State](/usc/15/6735.md?p=5) fails to issue, delays the issuance of, or seeks to revoke an original or renewal certificate of authority of a [redomesticated insurer](/usc/15/6735.md?p=9) promptly following [redomestication](/usc/15/6735.md?p=11), except on grounds and in a manner consistent with its past practices regarding the issuance of certificates of authority to foreign insurers that are not redomesticating, then the [redomesticating insurer](/usc/15/6735.md?p=10) shall be exempt from any [State law](/usc/15/6735.md?p=13) of the [licensed State](/usc/15/6735.md?p=5) to the extent that such [State law](/usc/15/6735.md?p=13) or the operation of such [State law](/usc/15/6735.md?p=13) would make unlawful, or regulate, directly or indirectly, the operation of the [redomesticated insurer](/usc/15/6735.md?p=9), except that such [licensed State](/usc/15/6735.md?p=5) may require the [redomesticated insurer](/usc/15/6735.md?p=9) to— - (1) comply with the unfair claim settlement practices law of the [licensed State](/usc/15/6735.md?p=5); - (2) pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on licensed insurers or [policyholders](/usc/15/6735.md?p=8) under the laws of the [licensed State](/usc/15/6735.md?p=5); - (3) register with and designate the [State insurance regulator](/usc/15/6735.md?p=12) as its agent solely for the purpose of receiving service of legal documents or process; - (4) submit to an examination by the [State insurance regulator](/usc/15/6735.md?p=12) in any [licensed State](/usc/15/6735.md?p=5) in which the [redomesticated insurer](/usc/15/6735.md?p=9) is doing business to determine the insurer’s financial condition, if— - (A) the [State insurance regulator](/usc/15/6735.md?p=12) of the [transferee domicile](/usc/15/6735.md?p=14) has not begun an examination of the [redomesticated insurer](/usc/15/6735.md?p=9) and has not scheduled such an examination to begin before the end of the 1-year period beginning on the date of the [redomestication](/usc/15/6735.md?p=11); and - (B) any such examination is coordinated to avoid unjustified duplication and repetition; - (5) comply with a lawful order issued in— - (A) a delinquency proceeding commenced by the [State insurance regulator](/usc/15/6735.md?p=12) of any [licensed State](/usc/15/6735.md?p=5) if there has been a judicial finding of financial impairment under [paragraph (7)](#c-7); or - (B) a voluntary dissolution proceeding; - (6) comply with any [State law](/usc/15/6735.md?p=13) regarding deceptive, false, or fraudulent acts or practices, except that if the [licensed State](/usc/15/6735.md?p=5) seeks an injunction regarding the conduct described in this paragraph, such injunction must be obtained from a [court of competent jurisdiction](/usc/15/6735.md?p=1) as provided in [section 6734(a) of this title](/usc/15/6734.md?p=a); - (7) comply with an injunction issued by a [court of competent jurisdiction](/usc/15/6735.md?p=1), upon a petition by the [State insurance regulator](/usc/15/6735.md?p=12) alleging that the [redomesticating insurer](/usc/15/6735.md?p=10) is in hazardous financial condition or is financially impaired; - (8) participate in any insurance insolvency guaranty association on the same basis as any other insurer licensed in the [licensed State](/usc/15/6735.md?p=5); and - (9) require a [person](/usc/15/6735.md?p=7) acting, or offering to act, as an [insurance licensee](/usc/15/6735.md?p=3) for a [redomesticated insurer](/usc/15/6735.md?p=9) in the [licensed State](/usc/15/6735.md?p=5) to obtain a license from that [State](/usc/15/15g.md?p=2), except that such [State](/usc/15/15g.md?p=2) may not impose any qualification or requirement that discriminates against a nonresident [insurance licensee](/usc/15/6735.md?p=3). ## Source credit (Pub. L. 106–102, title III, § 313, Nov. 12, 1999, 113 Stat. 1419.)