27-31-20
Section 27-31-20 Liability of subscribers - Generally. (a) The liability of each subscriber,
other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall
be an individual, several and proportionate liability and not joint. (b) Except as to a nonassessable
policy, each subscriber shall have a contingent assessment liability, in the amount provided
for in the power of attorney or in the subscribers' agreement, for payment of actual losses
and expenses incurred while his policy was in force. Such contingent liability may be at the
rate of not less than one nor more than 10 times the premium or premium deposit stated in
the policy, and the maximum aggregate thereof shall be computed in the manner set forth in
Section 27-31-24. (c) Each assessable policy issued by the insurer shall contain a statement
of the contingent liability. (Acts 1971, No. 407, p. 707, §610.)...
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27-31-9
Section 27-31-9 Power of attorney. (a) The rights and powers of the attorney of a reciprocal
insurer shall be as provided in the power of attorney given it by the subscribers. (b) The
power of attorney must set forth: (1) The powers of the attorney; (2) That the attorney is
empowered to accept service of process on behalf of the insurer in actions against the insurer
upon contracts exchanged; (3) The general services to be performed by the attorney; (4) The
maximum amount to be deducted from advance premiums or deposits to be paid to the attorney
and the general items of expense in addition to losses, to be paid by the insurer; and (5)
Except as to nonassessable policies, a provision for a contingent several liability of each
subscriber in a specified amount, which amount shall be not less than one nor more than 10
times the premium or premium deposit stated in the policy. (c) The power of attorney may:
(1) Provide for the right of substitution of the attorney and revocation of the...
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27-31-25
Section 27-31-25 Nonassessable policies. (a) If a reciprocal insurer has a surplus of assets
over all liabilities at least equal to the minimum capital stock required of a domestic stock
insurer authorized to transact like kinds of insurance, upon application of the attorney and
as approved by the subscribers' advisory committee, the commissioner shall issue his certificate
authorizing the insurer to extinguish the contingent liability of subscribers under its policies
then in force in this state and to omit provisions imposing contingent liability in all policies
delivered, or issued for delivery, in this state for so long as all such surplus remains unimpaired.
(b) Upon impairment of such surplus, the commissioner shall forthwith revoke the certificate.
Such revocation shall not render subject to contingent liability any policy then in force
and for the remainder of the period for which the premium has theretofore been paid; but after
such revocation, no policy shall be issued or...
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27-31-24
Section 27-31-24 Levy of assessments on subscribers of domestic insurers - Aggregate liability.
No one policy or subscriber as to such policy shall be assessed or charged with an aggregate
of contingent liability as to obligations incurred by a domestic reciprocal insurer in any
one calendar year in excess of the amount provided for in the power of attorney or in the
subscribers' agreement, computed solely upon premium earned on such policy during that year.
(Acts 1971, No. 407, p. 707, §614.)...
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27-31-22
Section 27-31-22 Levy of assessments on subscribers of domestic insurers - Generally. (a) Assessments
may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor
under the terms of their policies by the attorney upon approval in advance by the subscribers'
advisory committee and the commissioner or by the commissioner in liquidation of the insurer.
(b) Each subscriber's share of a deficiency for which an assessment is made, but not exceeding
in any event his aggregate contingent liability as computed in accordance with Section 27-31-24,
shall be computed by applying to the premium earned on the subscriber's policy, or policies,
during the period to be covered by the assessment, the ratio of the total deficiency to the
total premiums earned during such period upon all policies subject to the assessment. (c)
In computing the earned premiums for the purposes of this section, the gross premium received
by the insurer for the policy shall be used as...
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27-27-31
Section 27-27-31 Contingent liability of members of domestic mutual insurers - Generally. (a)
Each member of a domestic mutual insurer shall, except as otherwise provided in this chapter
with respect to nonassessable policies, have a contingent liability, pro rata and not one
for another, for the discharge of its obligations, which contingent liability shall be expressed
in the policy and be in such maximum amount as is specified in the insurer's articles of incorporation.
(b) Termination of the policy of any such member shall not relieve the member of contingent
liability for his proportion, if any, of the obligations of the insurer which accrued while
the policy was in force. (c) Unrealized contingent liability of members does not constitute
an asset of the insurer in any determination of its financial condition. (Acts 1971, No. 407,
p. 707, §527.)...
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27-31-23
Section 27-31-23 Levy of assessments on subscribers of domestic insurers - Time limit. Every
subscriber of a domestic reciprocal insurer having contingent liability shall be liable for
and shall pay his share of, any assessment, as computed and limited in accordance with this
chapter, if: (1) While his policy is in force or within one year after its termination, he
is notified by either the attorney or the commissioner of his intentions to levy such assessment;
or (2) An order to show cause why a receiver, conservator, rehabilitator, or liquidator of
the insurer should not be appointed is issued while his policy is in force or within one year
after its termination. (Acts 1971, No. 407, p. 707, §613.)...
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27-27-35
Section 27-27-35 Nonassessable policies in mutual insurers - Revocation of domestic insurers
authority to issue. The commissioner shall revoke the authority of a domestic mutual insurer
to issue policies without contingent liability if at any time the insurer's assets are less
than the sum of its liabilities and the surplus required for such authority or if the insurer,
by resolution of its board of directors approved by a majority of its members, requests that
the authority be revoked. During the absence of such authority, the insurer shall not issue
any policy without providing therein for the contingent liability of the policyholder nor
renew any policy which is renewable at the option of the insurer without endorsing the same
to provide for such contingent liability. (Acts 1971, No. 407, p. 707, §531.)...
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27-27-32
Section 27-27-32 Contingent liability of members of domestic mutual insurers - Levy of assessments.
(a) If at any time the assets of a domestic mutual insurer are less than its liabilities and
the minimum amount of surplus required to be maintained by it under this title for authority
to transact the kinds of insurance being transacted and the deficiency is not cured from other
sources, its directors shall levy an assessment only upon its members who held policies providing
for contingent liability at any time within the 12 months preceding the date notice of such
assessment was mailed to them, and such members shall be liable to the insurer for the amount
so assessed. (b) The assessment shall be for such an amount as is required to cure such deficiency
and to provide a reasonable amount of working funds above such minimum amount of surplus,
but such working funds so provided shall not exceed five percent of the insurer's liabilities
as of the date as of which the amount of such...
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27-31-17
Section 27-31-17 Determination of financial condition. In determining the financial condition
of a reciprocal insurer, the commissioner shall apply the following rules: (1) He shall charge
as liabilities the same reserves as are required of incorporated insurers issuing nonassessable
policies on a reserve basis; (2) The surplus deposits of subscribers shall be allowed as assets,
except that any premium deposits delinquent for 90 days shall first be charged against such
surplus deposit; (3) The surplus deposits of subscribers shall not be charged as a liability;
(4) All premium deposits delinquent less than 90 days shall be allowed as assets; (5) An assessment
levied upon subscribers and not collected shall not be allowed as an asset; (6) The contingent
liability of subscribers shall not be allowed as an asset; and (7) The computation of reserves
shall be based upon premium deposits, other than membership fees, and without any deduction
for expenses and the compensation of the attorney....
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