§ 26-27-109 — Power of attorney

(a) The rights and powers of a reciprocal insurer's
attorney are as provided in the power of attorney given it by
the subscribers.
(b) The power of attorney shall set forth:
(i) That the attorney is empowered to accept service
of process on behalf of the insurer in actions against the
insurer upon contracts exchanged;
(ii) The powers of the attorney;
(iii) The general services to be performed by the
attorney;
(iv) The maximum amount to be deducted from advance
premiums or deposits to be paid to the attorney and the general
items of expense, in addition to losses, to be paid by the
insurer; and
(v) Except as to nonassessable policies, a provision
for a contingent several liability of each subscriber in a
specified amount, which shall not be less than one (1) nor more
than ten (10) times the premium deposit stated in the policy.
(c) The power of attorney may:
(i) Provide for the right of substitution of the
attorney and revocation of the power of attorney and rights
thereunder;
(ii) Impose any restrictions upon the exercise of the
power as are agreed upon by the subscribers;
(iii) Provide for the exercise of any right reserved
to the subscribers directly or through their advisory committee;
and
(iv) Contain any other lawful provisions deemed
advisable.
(d) The terms of any power of attorney or agreement
collateral thereto shall be reasonable and equitable, and no
power or agreement shall be used or be effective in this state
until approved by the commissioner.