North Dakota § 26.1-12-21 Reserve fund may be established - Limitation - Use

North Dakota Statutes

§ 26.1-12-21 — Reserve fund may be established - Limitation - Use

North Dakota·Title 26.1 Insurance·Ch. 26.1-12 Incorporated Mutual Insurance Companies

Any mutual insurance company, at a meeting called for that purpose, may provide for the
accumulation of a permanent fund, in an amount determined from time to time by the board of
directors, by reserving a portion of the net profits for investment as a reserve for the security of
the policyholders. When the fund amounts to five percent of the sum insured by all policies in
force, the whole of the net profits thereafter must be divided among the insureds in cash as
provided in the bylaws of the company. The fund must be used for the payment of losses and
expenses whenever the cash funds of the company in excess of an amount equal to its liabilities
are exhausted.

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Any mutual insurance company, at a meeting called for that purpose, may provide for the
accumulation of a permanent fund, in an amount determined from time to time by the board of
directors, by reserving a portion of the net profits for investment as a reserve for the security of
the policyholders. When the fund amounts to five percent of the sum insured by all policies in
force, the whole of the net profits thereafter must be divided among the insureds in cash as
provided in the bylaws of the company. The fund must be used for the payment of losses and
expenses whenever the cash funds of the company in excess of an amount equal to its liabilities
are exhausted.

North Dakota § 26.1-12-21 (Reserve fund may be established - Limitation - Use) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.