US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2846.  CONTINGENT LIABILITY OF MUTUAL MEMBERS. (1) Except as provided
otherwise in section 41-2849 with respect to nonassessable policies, each
member of a domestic mutual insurer shall have a contingent liability, pro
rata and not one for another, for the discharge of its obligations, which
contingent liability shall be in such maximum amount as is specified in the
insurer's articles of incorporation consistent with section 41-2804(3)(a)(v).
    (2)  Every policy issued by the insurer shall contain a statement of the
contingent liability.
    (3)  Termination of the policy of any such member shall not relieve the
member of contingent liability for his proportion of the obligations of the
insurer which accrued while the policy was in force as provided in section
41-2847.
    (4)  Unrealized contingent liability of members does not constitute an
asset of the insurer in any determination of its financial condition.