§ 26-24-136 — Levy of contingent liability

Wyoming § 26-24-136

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 24: ORGANIZATION AND CORPORATE PROCEDURES OF LEGAL

Text

(a) If at any time the assets of a domestic mutual insurer
are less than its liabilities and the minimum amount of surplus
required to be maintained by it under this code for authority to
transact the kinds of insurance being transacted, and the
deficiency is not secured from other sources, its directors, if
approved by the commissioner, may levy an assessment only on its
members who held policies providing for contingent liability at
any time within the twelve (12) months immediately preceding the
date the board of directors authorized the levy. Those members
are liable to the insurer for the amount assessed.
(b) The levy of assessment shall be for the amount,
subject to the commissioner's approval, required to cure the
deficiency and to provide a reasonable amount of working funds
above the minimum amount of surplus. The working funds shall not
exceed five percent (5%) of the sum of the insurer's liabilities
and the minimum required surplus as of the date of the levy.
(c) The assessment shall be computed upon a reasonable
basis the commissioner approves in writing in advance of the
levy.
(d) No member has an offset against any assessment for
which he is liable, because of any claim for unearned premium or
loss payable.
(e) As to life insurance, any part of an assessment upon a
member which remains unpaid following notice of assessment,
demand for payment and lapse of a reasonable waiting period as
specified in the notice, if approved by the commissioner as
being in the best interests of the insurer and its members, may
be secured by placing a lien upon the cash surrender values and
accumulated dividends held by the insurer to the credit of the
member.