Common use of COMPANIES Clause in Contracts

COMPANIES. It is desirable that companies be licensed to do business in the particular State or other jurisdic- tion where the property is located, or that they be otherwise authorized by law to transact business within such State or other jurisdiction (hereinafter called ‘‘State’’). If the required insur- ance is not available locally at com- parable rates from an insurance com- pany licensed or otherwise authorized to do business in the State, insurance may be accepted from another com- pany if (1) the OGC advises that poli- cies issued by such company will not be rendered unenforceable by virtue of the company’s failure to be licensed or oth- erwise authorized to transact business in the State and that the company is a legal entity which may be sued in the State where the insured property is lo- cated, and (2) the State Director deter- mines that the company is reputable and financially sound. In making the above determinations, the State Direc- tor will consider all relevant available information such as that which may be obtained from financial statements, Best’s Insurance Reports, State insur- ance authorities, and other lending in- stitutions.