US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2859.  MUTUAL MEMBER'S SHARE OF ASSETS ON LIQUIDATION. (1) Upon any
liquidation of a domestic mutual insurer, its assets remaining after discharge
of its indebtedness, policy obligations, repayment of contributed or borrowed
surplus, if any, and expenses of administration, shall be distributed to
currently existing persons who had been members of the insurer for at least
one year and who were its members at any time within thirty-six (36) months
next preceding the date such liquidation was authorized or ordered, or date of
last termination of the insurer's certificate of authority whichever date is
the earlier; except, that if the director has reason to believe that those in
charge of the management of the insurer have caused or encouraged the
reduction of the number of members of the insurer in anticipation of
liquidation and for the purpose of reducing thereby the number of persons who
may be entitled to share in distribution of the insurer's assets, he may
enlarge the thirty-six (36) month qualification period above provided for by
such additional period as he may deem to be reasonable.
    (2)  The insurer shall make a reasonable classification of its policies so
held by such members, and a formula based upon such classification for
determining the equitable distributive share of each such member. Such
classification and formula shall be subject to the approval of the director.