33-17-221. Licensing insurance vending machines. (1) A licensed resident insurance producer may solicit applications for and issue policies of personal travel accident insurance by means of mechanical vending machines supervised by him and placed at airports, railroad stations, bus stations, and similar places where transportation tickets are sold and of convenience to the traveling public, if the commissioner finds that:
     (a) the policy to be sold provides reasonable coverage and benefits, is reasonably suited for sale and issuance through a mechanical vending machine, and use of a mechanical vending machine to sell or issue a policy in a particular proposed location would be of material convenience to the public;
     (b) the type of mechanical vending machine proposed to be used is reasonably suitable and practical for the purpose;
     (c) reasonable means are provided for informing the prospective purchaser of any policy of the coverage and restrictions of the policy; and
     (d) reasonable means are provided for refund to the applicant or prospective applicant of money inserted in a defective mechanical vending machine and for which no insurance or a less amount than that paid for is actually received.
     (2) As to each mechanical vending machine to be used to sell or issue a policy, the commissioner shall issue to the insurance producer a special mechanical vending machine license. The license must specify the name and address of the insurer and insurance producer, the name of the policy to be sold or issued through the mechanical vending machine, the serial number of the mechanical vending machine, and the place where the machine will operate. The license is subject to annual continuation, expiration, suspension, or revocation coincidentally with that of the insurance producer. The commissioner shall also revoke the license of a mechanical vending machine if he finds that the conditions upon which the machine was licensed, as referred to in subsection (1), no longer exist. The license fee is as provided in 33-2-708 for each license year or part of the year for each respective mechanical vending machine. Proof of the existence of a subsisting license must be displayed on or about each mechanical vending machine in use in the manner that the commissioner may reasonably require.

     History: En. Sec. 166, Ch. 286, L. 1959; R.C.M. 1947, 40-3322; amd. Sec. 27, Ch. 713, L. 1989.