§431:4-118  Insurance application.  All
applications for insurance obtained in forming a mutual or reciprocal insurer
shall provide that:



(1)  Issuance of the policy is contingent upon
completion of organization of the insurer and issuance of a certificate of
authority to it;



(2)  The prepaid premium or deposit will be refunded
in full to the applicant if the organization is not completed and the
certificate of authority issued prior to the solicitation permit's date of
expiration; and



(3)  The agreement for insurance is not effective
until a policy has been issued under it. [L 1987, c 347, pt of §2]