§ 27-5-14. Reinsurance by mutual insurers — Agreements with policyholders.
(a) Whenever any mutual company of this or any other state shall reinsure in a similar
company the whole or any portion of a risk covered by its policy or policies of insurance,
it may do so either:
(1) By existing methods of reinsurance; or
(2) By agreement with its policyholder or policyholders attached to and made a part of
its policy or policies.
(b) This agreement shall contain a schedule giving:
(1) The nam
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§ 27-5-14. Reinsurance by mutual insurers — Agreements with policyholders.
(a) Whenever any mutual company of this or any other state shall reinsure in a similar
company the whole or any portion of a risk covered by its policy or policies of insurance,
it may do so either:
(1) By existing methods of reinsurance; or
(2) By agreement with its policyholder or policyholders attached to and made a part of
its policy or policies.
(b) This agreement shall contain a schedule giving:
(1) The name and location of each reinsuring company; and
(2) The portion of the risk reinsured in each company.
(c) This agreement shall also provide that the dividend or return of the premium or premium
deposit to be paid or credited upon termination of the policy or policies shall be
the sum of:
(1) The dividend or return of the premium or premium deposit to be paid or credited upon
that portion of the premium or premium deposit retained by the company issuing the
policy or policies; and
(2) The aggregate amount of the dividends or returns of the premium or premium deposit
paid or credited upon all portions of the premium or premium deposit ceded to all
the reinsuring companies.