US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 29
                             RECIPROCAL INSURERS
    41-2930.  IMPAIRED RECIPROCALS. (1) If the assets of a 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 forthwith make up the
deficiency or levy an assessment upon the subscribers for the amount needed to
make up the deficiency; but subject to the limitation set forth in the power
of attorney or policy.
    (2)  If the attorney fails to make up such deficiency or to make the
assessment within thirty (30) days after the director orders him to do so, or
if the deficiency is not fully made up within sixty (60) days after the date
the assessment was made, the insurer shall be deemed insolvent and shall be
proceeded against as authorized by this code.
    (3)  If liquidation of such an insurer is ordered, an assessment shall be
levied upon the subscribers for such an amount, subject to limits as provided
by this chapter, as the director determines to be necessary to discharge all
liabilities of the insurer, exclusive of any funds contributed by the attorney
or other persons, but including the reasonable cost of the liquidation.