As used in this chapter, the term: “Attorney” means the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. “Reciprocal insurance” means insurance resulting from an interexchange among persons, known as subscribers, of reciprocal agreements of indemnity, the interexchange being effectuated through an attorney in fact common to […]
Action on the attorney’s bond or to recover against a deposit made in lieu of the bond may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by the Commissioner as liquidator of the insurer. Amounts recovered on the bond shall be deposited in and […]
The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given to it by the subscribers. The power of attorney must set forth: The powers of the attorney; That the attorney is authorized to accept service of process on behalf of the insurer in actions […]
The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of discharge of his or her duties as such attorney with respect to the insurer’s transactions in this state, be thereby deemed to be doing business in this state within the […]
Every reciprocal insurer authorized to transact business in this state shall file with the Commissioner a written statement or power of attorney duly signed and sealed appointing and authorizing some person, who shall be a resident of this state, to acknowledge or accept service of process for and in behalf of such reciprocal insurer, and […]
The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscribers adopt. The committee shall: Supervise the finances of the insurer; Supervise the insurer’s operations to such extent as to assure conformity with the subscribers’ agreement and power of attorney; Procure the audit of the […]
Modifications 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 modification shall be effective until it has been filed with and approved by the Commissioner, and no modification shall be effective retroactively. Furthermore, […]
A domestic reciprocal insurer formed under this chapter, if it has otherwise complied with the applicable provisions of this title, may be authorized to transact insurance if it has and thereafter maintains surplus funds as follows: To transact property insurance, surplus funds of not less than $1.5 million; and To transact casualty insurance, surplus funds […]
The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms any funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upon liquidation of the insurer, shall not be withdrawn or repaid except […]
Individuals, partnerships, and corporations of this state may make application to, enter into agreement for, 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 in its […]
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. 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 […]
All authorized reciprocal insurers shall be governed by those Code sections of this chapter not expressly made applicable to domestic reciprocal insurers. Authorized reciprocal insurers shall comply with this chapter and shall make any amendments to their subscribers’ agreement, power of attorney, policies, and other documents and accounts and perform any other acts as may […]
No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days. Any judgment shall be binding upon each subscriber only in such proportion as his interests may appear and in amount not exceeding his contingent liability, […]
In determining the financial condition of a reciprocal insurer, the Commissioner shall apply the following rules: He shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis; The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for 90 […]
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. Each subscriber’s share of a deficiency for which […]
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: While his or her policy is in force or within one year after its termination, he or she is notified by either the […]
No one policy or subscriber as to the 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 subscriber’s agreement computed solely upon premium […]
If the assets of a domestic 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 immediately make up the deficiency or levy an assessment upon the subscribers for the amount […]
If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum paid-in 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 a certificate authorizing the […]
A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings, credits, or profits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks or policies or between subscribers, but the distribution may vary as to classes of subscribers based upon the experience of the […]
