27-31-29
Section 27-31-29 Proceedings when assets of insurer insufficient. (a) If the assets of a reciprocal
insurer are at any time insufficient to discharge its liabilities, other than any liability
on account of funds contributed by the attorney or others, and to maintain the required surplus,
its attorney shall forthwith make up the deficiency or levy an assessment upon the subscribers
for the amount needed to make up the deficiency, but subject to the limitation set forth in
the power of attorney or policy. (b) If the attorney fails to make up such deficiency or to
make the assessment within 30 days after the commissioner orders him to do so or if the deficiency
is not fully made up within 60 days after the date the assessment was made, the insurer shall
be deemed insolvent and shall be proceeded against as authorized by this title. (c) If liquidation
of such an insurer is ordered, an assessment shall be levied upon the subscribers for such
an amount, subject to limits as provided by this...
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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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27-31-25
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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27-31-17
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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27-42-8
Section 27-42-8 Powers and duties. (a) The association shall: (1)a. Be obligated to pay covered
claims existing prior to the order of liquidation arising within 30 days after the order of
liquidation, or before the policy expiration date if less than 30 days after the order of
liquidation, or before the insured replaces the policy or causes its cancellation, if he or
she does so within 30 days of the order of liquidation. The obligation shall be satisfied
by paying to the claimant an amount as follows: 1. The full amount of a covered claim for
benefits under workers' compensation insurance coverage. 2. An amount not exceeding ten thousand
dollars ($10,000) per policy for a covered claim for the return of unearned premium. 3. An
amount not exceeding three hundred thousand dollars ($300,000) or the policy limits, whichever
is less, per claim for all covered claims. For purposes of this limitation, all claims of
any kind whatsoever arising out of, or related to, bodily injury or death to...
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27-31-14
Section 27-31-14 Service of process on domestic insurer; judgment thereon. (a) Legal process
shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his
principal offices or by serving the commissioner as the insurer's process agent under Sections
27-3-24 and 27-3-25. (b) Any judgment based upon legal process so served shall be binding
upon each of the insurer's subscribers as their respective interests may appear, but in an
amount not exceeding their respective contingent liabilities, if any, the same as though personal
service of process was had upon each such subscriber. (Acts 1915, No. 280, p. 315; Acts 1971,
No. 407, p. 707, §604.)...
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27-32-32
Section 27-32-32 Assessments - Commissioner's report. Within three years from the date an order
of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer
was filed in the office of the clerk of the court by which such order was made, the commissioner
may make his report to the court setting forth: (1) The reasonable value of the assets of
the insurer; (2) The insurer's probable liabilities; and (3) The probable necessary assessment,
if any, to pay all claims and expenses in full, including expenses of administration. (Acts
1971, No. 407, p. 707, §651.)...
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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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27-32-33
Section 27-32-33 Assessments - Levy. (a) Upon the basis of the report provided for in Section
27-32-32, including any amendments thereto, the court may, of its own motion, order the commissioner
to levy one or more assessments against all members of such insurer who, as shown by the records
of the insurer, were members, if a mutual insurer, or subscribers, if a reciprocal insurer,
at any time within one year prior to the date of issuance of the order to show cause under
Section 27-32-4. (b) Such assessment or assessments shall cover the excess of the probable
liabilities over the reasonable value of the assets, together with the estimated cost of collection
and percentage of uncollectability thereof. The total of all assessments against any member
or subscriber with respect to any policy, whether levied pursuant to this chapter or pursuant
to any other provision of law, shall be for no greater amount than that specified in the policy
or policies of the member or subscriber; except,...
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27-31-27
Section 27-31-27 Distribution of assets upon liquidation of domestic insurer. Upon the liquidation
of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness
and policy obligations, the return of any contributions of the attorney or other persons to
its surplus made as provided in Section 27-31-15, and the return of any unused premium, savings,
or credits then standing on subscribers' accounts shall be distributed to its subscribers
who were such within the 12 months prior to the last termination of its certificate of authority,
according to such reasonable formula as the commissioner may approve. (Acts 1971, No. 407,
p. 707, §617.)...
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