§ 41-2846 — CONTINGENT LIABILITY OF MUTUAL MEMBERS

Idaho § 41-2846

• Jurisdiction: Idaho
• Title 41: INSURANCE
• Ch. 28: ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS

Text

(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.

Legislative History

[41-2846, added 1961, ch. 330, sec. 614, p. 645.]