40-1008.Liability for losses; assessments; indebtedness.Every person who effects insurance in any company organized under theprovisions of this article, and also such person's heirs, executors, administratorsand assigns, continuing to be so insured, shall thereby become members ofthe company during the period of insurance and shall be bound to pay lossesand such necessary expenses as accrue in and to the company in proportionto the original amount of such person's deposit note or notes or cash deposit as madefor one annual rate. The directors shall annually at or before the annual meeting,levy a sufficient assessment on all deposit notes to liquidate allliabilities of the company existing at the time of the assessment, and theyshall make such assessments oftener when necessary. They may also, at orbefore the annual meeting of each year, estimate therate of assessment on the deposit noteswhich the experience of the company indicates will be necessary to providefor the losses and expenses for the ensuing year and make and collectassessments in advance on all deposit notes of the company deemed by theboard sufficient to pay such losses and expenses.
In determining the rate of assessments to be made the directors shallnot include either the guarantee fund, the reserve fund, or the unusedportion of the cash premiums on hand, as funds available for the payment ofaccrued liabilities, but shall levy such assessments on the notes as may benecessary in order to require the makers thereof to pay their ratableshares of all losses and expenses already accrued and estimated to accruewithin the ensuing year. The notices of assessment may be given in suchnumber of different lists throughout the year as the board deems advisable,having regard to the dates of the policies. The sums to be paid on anyassessment by each member shall always be in proportion to the originalamount of such member's deposit note or notes for one annual rate and shall be paidto the company within thirty (30) days next after notice of such assessment isgiven in the manner provided in the bylaws. The company shall not be liableto the insured for any loss that may occur during the period from the dayon which an assessment on such insured's deposit note is due and the date of thepayment thereof. No such company shall borrow money or create a debt,unless for the purpose of necessary office buildings, to continue beyondthe period when such assessment may be collected and applied to the paymentthereof, and no member shall be assessed for liabilities prior to such member'smembership.
History: L. 1927, ch. 231, 40-1008; L. 1976, ch. 215, § 2; July 1.
40-1008.Liability for losses; assessments; indebtedness.Every person who effects insurance in any company organized under theprovisions of this article, and also such person's heirs, executors, administratorsand assigns, continuing to be so insured, shall thereby become members ofthe company during the period of insurance and shall be bound to pay lossesand such necessary expenses as accrue in and to the company in proportionto the original amount of such person's deposit note or notes or cash deposit as madefor one annual rate. The directors shall annually at or before the annual meeting,levy a sufficient assessment on all deposit notes to liquidate allliabilities of the company existing at the time of the assessment, and theyshall make such assessments oftener when necessary. They may also, at orbefore the annual meeting of each year, estimate therate of assessment on the deposit noteswhich the experience of the company indicates will be necessary to providefor the losses and expenses for the ensuing year and make and collectassessments in advance on all deposit notes of the company deemed by theboard sufficient to pay such losses and expenses.
In determining the rate of assessments to be made the directors shallnot include either the guarantee fund, the reserve fund, or the unusedportion of the cash premiums on hand, as funds available for the payment ofaccrued liabilities, but shall levy such assessments on the notes as may benecessary in order to require the makers thereof to pay their ratableshares of all losses and expenses already accrued and estimated to accruewithin the ensuing year. The notices of assessment may be given in suchnumber of different lists throughout the year as the board deems advisable,having regard to the dates of the policies. The sums to be paid on anyassessment by each member shall always be in proportion to the originalamount of such member's deposit note or notes for one annual rate and shall be paidto the company within thirty (30) days next after notice of such assessment isgiven in the manner provided in the bylaws. The company shall not be liableto the insured for any loss that may occur during the period from the dayon which an assessment on such insured's deposit note is due and the date of thepayment thereof. No such company shall borrow money or create a debt,unless for the purpose of necessary office buildings, to continue beyondthe period when such assessment may be collected and applied to the paymentthereof, and no member shall be assessed for liabilities prior to such member'smembership.
History: L. 1927, ch. 231, 40-1008; L. 1976, ch. 215, § 2; July 1.
40-1008.Liability for losses; assessments; indebtedness.Every person who effects insurance in any company organized under theprovisions of this article, and also such person's heirs, executors, administratorsand assigns, continuing to be so insured, shall thereby become members ofthe company during the period of insurance and shall be bound to pay lossesand such necessary expenses as accrue in and to the company in proportionto the original amount of such person's deposit note or notes or cash deposit as madefor one annual rate. The directors shall annually at or before the annual meeting,levy a sufficient assessment on all deposit notes to liquidate allliabilities of the company existing at the time of the assessment, and theyshall make such assessments oftener when necessary. They may also, at orbefore the annual meeting of each year, estimate therate of assessment on the deposit noteswhich the experience of the company indicates will be necessary to providefor the losses and expenses for the ensuing year and make and collectassessments in advance on all deposit notes of the company deemed by theboard sufficient to pay such losses and expenses.
In determining the rate of assessments to be made the directors shallnot include either the guarantee fund, the reserve fund, or the unusedportion of the cash premiums on hand, as funds available for the payment ofaccrued liabilities, but shall levy such assessments on the notes as may benecessary in order to require the makers thereof to pay their ratableshares of all losses and expenses already accrued and estimated to accruewithin the ensuing year. The notices of assessment may be given in suchnumber of different lists throughout the year as the board deems advisable,having regard to the dates of the policies. The sums to be paid on anyassessment by each member shall always be in proportion to the originalamount of such member's deposit note or notes for one annual rate and shall be paidto the company within thirty (30) days next after notice of such assessment isgiven in the manner provided in the bylaws. The company shall not be liableto the insured for any loss that may occur during the period from the dayon which an assessment on such insured's deposit note is due and the date of thepayment thereof. No such company shall borrow money or create a debt,unless for the purpose of necessary office buildings, to continue beyondthe period when such assessment may be collected and applied to the paymentthereof, and no member shall be assessed for liabilities prior to such member'smembership.
History: L. 1927, ch. 231, 40-1008; L. 1976, ch. 215, § 2; July 1.
