20-761. " Reciprocal" insurance defined " Reciprocal" insurance is that resulting from an inter-exchange among persons, known as " subscribers, " of reciprocal agreements of indemnity, the inter-exchange being effectuated through an " attorney-in-fact" common to all such persons.
20-762. " Reciprocal insurer" defined A " reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact to provide reciprocal insurance among themselves.
20-763. Scope of article All authorized reciprocal insurers shall be governed by those sections of this article not expressly made applicable to domestic reciprocals.
20-764. Compliance by existing insurers Existing authorized reciprocal insurers shall after January 1, 1955 comply with the provisions of this article, and shall make such amendments to their subscribers’ agreement, power of attorney, policies and other documents and accounts and perform such other acts as may be required for such compliance.
20-765. Powers of reciprocal insurers A. A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kind or kinds of insurance defined by this title, other than life or title insurances. B. Such an insurer may purchase reinsurance upon the risk of any subscriber, and may grant reinsurance as to […]
20-766. Name of insurer; designation by name as party in action A reciprocal insurer shall have and use a business name which shall include the word " reciprocal, " " inter-insurer, " " inter-insurance, " " exchange, " " underwriters" or " underwriting, " and shall sue and be sued in its own name.
20-767. Attorney-in-fact of reciprocal insurers A. " Attorney, " as used in this article refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm or corporation. B. The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by […]
20-768. Required surplus funds A. A domestic reciprocal insurer formed under this article, if it has otherwise complied with the provisions of this title, may be authorized to transact insurance if it deposits and maintains on deposit with the state treasurer through the office of the director to transact property or vehicle insurance, surplus funds […]
20-769. Organization of reciprocal insurer A. Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the director for a certificate of authority to transact insurance. B. The proposed attorney shall fulfill the requirements of and shall execute and file with the director, when applying for a […]
20-770. Certificate of authority A. The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. B. The director may refuse, suspend or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any provision of this […]
20-771. 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 shall set forth: 1. The powers of the attorney. 2. That the attorney is empowered to accept service of process […]
20-772. Modifications of agreement Modification of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively, nor effective as to any insurance contract issued prior thereto.
20-773. Bond of attorney A. Concurrently with the filing of the declaration provided for in section 20-769, the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of […]
20-774. Deposit in lieu of bond of attorney In lieu of the bond provided for in section 20-773, the attorney may maintain on deposit with the state treasurer through the office of the director a like amount in cash or in value of securities qualified under this title as insurers’ investments, and subject to the […]
20-775. Action on bond Action on the attorney’s bond or to recover against any deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited […]
20-776. Service of legal process; liabilities under judgment on such service A. Legal process shall be served on a domestic reciprocal insurer by serving the insurer’s attorney at the attorney’s principal offices or by serving the director of the department of insurance and financial institutions as the insurer’s attorney-in-fact. B. Any judgment based on legal […]
20-777. Annual statement A. The annual statement of a reciprocal insurer shall be made and filed by its attorney. B. The statement shall be supplemented by such information as may be required by the director relative to the affairs and transactions of the attorney.
20-778. Contributions to insurer The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Amounts so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, shall not be […]
20-779. Financial condition; determination In determining the financial condition of a reciprocal insurer the director 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 […]
20-780. Subscribers Individuals, partnerships and corporations of this state may make application, enter into agreement for and hold policies or contracts in or with and be a subscriber of any domestic, foreign or alien reciprocal insurer. Any corporation organized under the laws of this state shall, in addition to the rights, powers and franchises specified […]
