20-710. Formation of mutuals; trust deposit of premiums; issuance of policies
140 words·~1 min read·
/az/title-20/20-710A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. All sums collected by a domestic mutual corporation as premiums and fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company of this state under a written trust agreement consistent with this section and with paragraph 3 of subsection C of section 20-709. The corporation shall file an executed copy of the trust agreement with the director.
B. Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which the applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall forthwith issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority.