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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27-31-23
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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27-31-20
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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27-31-22
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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27-31-25
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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27-27-32
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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27-6B-4
Section 27-6B-4 Contract requirements. (a) Unless there is a written contract between
the controlling producer and the insurer approved by the board of directors of the insurer
and specifying the responsibilities of each party, a controlled insurer shall not accept business
from a controlling producer and a controlling producer shall not place business with a controlled
insurer. The contract between a controlling producer and a controlled insurer shall, as a
minimum, contain all of the following: (1) A provision that, upon written notice to the controlling
producer, the controlled insurer may terminate the contract for cause. The controlled insurer
shall suspend the authority of the controlling producer to write business during any pending
dispute regarding the cause for the termination. (2) A provision requiring the controlling
producer to give a detailed accounting to the controlled insurer on any material transaction,
including information necessary to support all commissions,...
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27-44-8
Section 27-44-8 Powers and duties of association. (a) If a member insurer is an impaired
insurer, the association may, in its discretion and subject to any conditions imposed by the
association that do not impair the contractual obligations of the impaired insurer, and that
are approved by the commissioner: (1) Guarantee or reinsure, or cause to be guaranteed, assumed,
or reinsured, any or all of the covered policies of the impaired insurers. (2) Provide such
moneys, pledges, notes, guarantees, or other means as are proper to effectuate subdivision
(1), and assure payment of the contractual obligations of the impaired insurer pending action
under subdivision (1). (b) If a member insurer is an insolvent insurer, the association shall,
in its discretion and subject to the approval of the commissioner, do either of the following:
(1)a. Guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, the
covered policies of the insolvent insurer. b. Assure payment of the...
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27-44-3
Section 27-44-3 Scope of chapter. (a) This chapter shall provide coverage for the policies
and contracts specified in subsection (b) as follows: (1) To persons who, regardless of where
they reside (except for non-resident certificate holders under group policies or contracts),
are the beneficiaries, assignees, or payees of the persons covered under subdivision (2).
(2) To persons who are owners of or certificate holders under the policies or contracts, other
than structured settlement annuities, and in each case who are either of the following: a.
Residents b. Not residents, but only under all of the following conditions: 1. The insurer
that issued the policies or contracts is domiciled in this state. 2. The states in which the
persons reside have associations similar to the association created by this chapter. 3. The
persons are not eligible for coverage by an association in any other state due to the fact
the insurer was not licensed in the state at the time specified in the state's...
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