US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2823.  FORMATION OF MUTUALS -- TRUST DEPOSIT OF PREMIUMS -- ISSUANCE OF
POLICIES. (1) All sums collected by a domestic mutual corporation as premiums
or fees on qualifying applications for insurance therein shall be deposited in
trust in a bank or trust company in this state under a written trust agreement
approved by the director and consistent with this section and with section
41-2822(3)(c). The corporation shall file an executed copy of such trust
agreement with the director.
    (2)  Upon issuance to the corporation of a certificate of authority as an
insurer for the kind of insurance for which such applications were solicited,
all funds so held in trust shall become the funds of the insurer, and the
insurer shall thereafter in due course issue and deliver its policies for
which premiums had been paid and accepted. The insurance provided by such
policies shall be effective as of the date of the certificate of authority or
thereafter as provided by the respective policies.