§ 26-24-151 — Mutual members' share of assets upon liquidation

(a) If a domestic mutual insurer is liquidated, its assets
remaining after discharge of its indebtedness, policy
obligations, repayment of contributed or borrowed surplus, if
any, and expenses of administration, shall be distributed to
currently existing persons who were members of the insurer for
at least one (1) year and who were its members at any time
within thirty-six (36) months preceding the date the liquidation
was authorized or ordered, or the date of last termination of
the insurer's certificate of authority, whichever is earlier. If
the commissioner has reason to believe that the insurer's
management caused or encouraged a reduction in the number of the
insurer's members in anticipation of liquidation and for the
purpose of reducing thereby the number of persons entitled to
share in distribution of the insurer's assets, he may enlarge
the thirty-six (36) month qualification period by any additional
period he deems reasonable.
(b) The insurer shall make a reasonable classification of
its policies held by the members specified in subsection (a) of
this section and a formula based upon that classification for
determining the equitable distributive share of each such
member. The classification and formula are subject to the
commissioner's approval.