CHAPTER 6. County Mutual Fire Reinsurers [7080. - 9060.]
Chapter 6 enacted by Stats. 1935, Ch. 145.
§§ 7080–9060 · 46 sections
ARTICLE 1. Formation and Organization §§ 7080–7093 · 14 sections
- § 7080 Five or more insurers, operating under Chapter 5 of this part and having insurance liabilities exceeding a total of $150,000 which they wish to reinsure, may…
- § 7081 Upon payment in advance of two hundred fifty dollars ($250) cash, lawful money of the United States, to the commissioner for all services to be rendered by him…
- § 7082 The declaration shall be signed by the president and secretary of each of the incorporators. It shall be accompanied by a certified copy of a resolution passed…
- § 7083 The articles shall be executed by each incorporator through its president or secretary, each signature being acknowledged as required by the general…
- § 7084 The commissioner shall examine the proposed articles of incorporation, and if they conform to this chapter, he shall deliver to such incorporators a…
- § 7085 Upon filing with the Secretary of State of the articles of incorporation and the certificate provided for in Section 7084, the incorporation of the reinsurer…
- § 7086 Three delegates shall be elected by each member at its regular annual meeting to represent it at all meetings of the reinsurer.
- § 7087 The delegates shall be elected by ballot and shall hold office for one year, or until their successors have been elected and qualified.
- § 7088 The annual meeting of the members of the reinsurer shall be held on the third Monday in February of each year.
- § 7089 At such meeting one director shall be elected from the delegates of each member so that the number of directors is equal to the number of members of the…
- § 7090 In the election of the first board of directors each member insurer shall be entitled to one vote. At every subsequent election, each delegate from each member…
- § 7091 The directors of the reinsurer shall elect from their own number a president, a vice president, and an executive committee of three. They shall also elect a…
- § 7092 The directors and all of such officers shall hold office for one year from the date of their election, and until their successors are elected and qualified.
- § 7093 The treasurer and secretary shall give bonds to the reinsurer in such amounts as are prescribed by the board of directors, conditioned upon the faithful…
ARTICLE 2. Powers and Duties §§ 8010–8011 · 2 sections
- § 8010 Upon organizing under its articles of incorporation, such reinsurer may carry on a fire reinsurance business as provided by this chapter.
- § 8011 Such reinsurer and its directors shall possess such of the usual powers, and be subject to such of the usual duties of corporations and directors thereof as…
ARTICLE 3. Additional Memberships §§ 8030–8031 · 2 sections
- § 8030 Any county mutual fire insurer in this State may become a member of such a reinsurer and entitled to all the rights and privileges appertaining thereto.
- § 8031 County mutual fire insurers, upon becoming members of such reinsurer, shall give it their written obligation binding themselves and their successors to pay…
ARTICLE 4. Risks §§ 8050–8053 · 4 sections
- § 8050 Restrictions on risks as to “distances,” “city or town block,” “closely built up district,” “one risk,” and “clear space,” in chapter 5 of this part are…
- § 8051 All such reinsurers shall classify the reinsured subject matter at the time of issuing policies thereon, under rates corresponding as nearly as practicable to…
- § 8052 Such reinsurer may write reinsurance on property which is located in this State and which is insured in any member insurer.
- § 8053 Such reinsurer shall not at any time write reinsurance, subject to one risk, in excess of five per cent of the total amount of reinsurance on its books at the…
ARTICLE 5. Loss §§ 8070–8078 · 9 sections
- § 8070 A member of such reinsurer, upon sustaining loss covered by reinsurance, shall immediately notify the president or secretary, stating the amount of loss.
- § 8071 The president and secretary shall proceed to ascertain the amount of such loss and make adjustment.
- § 8072 If the claim is for more than five thousand dollars ($5,000), the secretary shall forthwith notify each member of the executive committee. At each regular…
- § 8073 If in any case there is a failure of the parties to agree upon the amount of such loss they may submit the question of the amount to arbitration. In that event…
- § 8074 If the two arbitrators thus appointed fail to agree upon the amount of such loss, they shall select a third disinterested person to act with them.
- § 8075 Such arbitrators so appointed may examine witnesses and do all other things necessary to the proper determination of the amount of loss sustained by the…
- § 8076 The arbitrators shall make their award in writing to the president of the reinsurer and to the member. Such award shall be final as to the amount of the loss…
- § 8077 The pay of each arbitrator shall be five dollars per day for each day’s services rendered, and five cents for each mile necessarily traveled in the discharge…
- § 8078 The president and secretary of the reinsurer may secure the services of an adjuster to represent it on any loss, subject to confirmation by its executive…
ARTICLE 6. Assessments and Coverage of Loss §§ 8090–8097 · 8 sections
- § 8090 When the amount of any ascertained loss exceeds the cash funds of the reinsurer and also exceeds one-eighth of one per cent of the total amount of the…
- § 8091 When the amount of such loss does not exceed one-eighth of one per cent of the total amount of insurance in force in the reinsurer, the directors may, by…
- § 8092 The term of such loan shall not be longer than twelve months, and the date of maturity shall not be more than thirty days beyond the date of the next annual…
- § 8093 The board of directors may at their annual meeting levy an assessment not exceeding twenty-five cents on the $100 of reinsurance. The sum so raised shall…
- § 8094 Whenever an assessment is made, the secretary shall immediately notify every member by registered letter addressed to the secretary of the member at its usual…
- § 8095 An action may be brought against any member of such reinsurer that neglects or refuses to pay the liabilities due such reinsurer.
- § 8096 The directors of any such reinsurer who wilfully refuse or neglect to perform the duties imposed upon them by law or by the by-laws of the reinsurer are liable…
- § 8097 An action may also be brought and maintained against any such reinsurer by members thereof to recover sums owing them for losses sustained when payment is…
ARTICLE 7. Cancellation of Membership §§ 9010–9012 · 3 sections
- § 9010 Any member of such reinsurer may cancel any policy of reinsurance at any time while the reinsurer continues its reinsurance business.
- § 9011 The cancellation may be accomplished only by complying with all of the following requirements: (a) Surrender of policy for cancellation. (b) Giving ten days’…
- § 9012 The reinsurer may cancel or terminate any policy by giving the member ten days’ written notice and returning to it any excess of premium paid during the term…
ARTICLE 8. Reports and Statements §§ 9030–9031 · 2 sections
- § 9030 The secretary shall prepare an annual statement, showing the condition of such reinsurer on December thirty-first and a supplemental report of the business of…
- § 9031 The president and secretary shall, on or before the first day of March of each year, prepare under oath, and transmit to the commissioner, a statement of the…
ARTICLE 9. Dissolution § 9050 · 1 section
- § 9050 Any such reinsurer may be proceeded against and dissolved in the same manner and upon the same conditions as in the case of other domestic insurers.
ARTICLE 10. Exemptions § 9060 · 1 section
- § 9060 The provisions of Sections 980, 981, 982, 983, 984, 985, 986, 987, 988, 989, 990, 991, 992, and 993 shall not apply to county mutual fire reinsurers.