US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2849.  NONASSESSABLE POLICIES -- MUTUAL INSURERS. (1) A domestic mutual
insurer while maintaining unimpaired surplus funds not less in amount than the
minimum paid-in capital stock required of a domestic stock insurer formed
under this code for authority to transact the same kind or kinds of insurance,
may, upon receipt of the director's order so authorizing, extinguish the
contingent liability to assessment of its members as to all its policies in
force and may omit provisions imposing contingent liability in all policies
currently issued.
    (2)  The director shall not authorize a domestic insurer to extinguish the
contingent liability of any of its members or in any of its policies to be
issued, unless it qualifies to and does extinguish such liability of all its
members and in all such policies for all kinds of insurance transacted by it.
    (3)  A foreign or alien mutual insurer may issue nonassessable policies to
its members in this state pursuant to its charter and the laws of its
domicile.