§ 26.1-12-23 — Deficiency in assets - Assessments required

North Dakota § 26.1-12-23

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-12: Incorporated Mutual Insurance Companies

Text

A mutual insurance company not possessed of assets at least equal to its unearned
premium reserve and other liabilities shall make an assessment upon its members liable to
assessment to provide for the deficiency. The assessment must be made against each such
member in proportion to the member's liability as expressed in the member's policy. The
commissioner, however, may relieve the company, by written order, from any assessment or
other proceedings to restore the assets during the time fixed in the order. The company shall
record in a book kept for that purpose the order for the assessment and a statement setting
forth the condition of the company at the date of the order, the amount of its cash assets and of
the notes of its policyholders or of other contingent funds liable to the assessment, the amount
of the assessment, and the particular losses or other liabilities for which the assessment is
made. The record must be made and signed by the directors who voted for the order before any
part of the assessment is collected, and any person liable for the assessment may inspect and
take a copy of the record.