44-1203. Declaration; filing; contents; loss fund required.

443 words·~2 min read·/ne/chapter-44/44-1203

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Such subscribers so contracting among themselves shall, through their attorney, file with the Department of Insurance a declaration verified by the oath of such attorney or, when such attorney is a corporation, by the oath of the chief officer thereof setting forth:

(1)The name or title adopted by such subscribers proposing to exchange such indemnity contracts, which name or title shall not be so similar to any other name or title previously adopted by a similar organization or by any insurance corporation or association as in the opinion of the department is likely to result in confusion or deception;

(2)the kind or kinds of insurance to be effected or exchanged;

(3)a copy of the form of policy contract or agreement under or by which such insurance is to be effected or exchanged, which policy contract or agreement shall state the minimum and maximum liability of subscribers for the payment of losses occurring under its contracts;

(4)a copy of the form of power of attorney or other authority of such attorney under which such insurance is to be effected or exchanged;

(5)the location of the office or offices from which such contracts or agreements are to be issued;

(6)that applications have been made for indemnity upon at least seventy-five separate risks, aggregating not less than one and one-half million dollars, as represented by executed contracts or bona fide applications to become effective concurrently or, in the case of employers liability or workers' compensation insurance, at least seventy-five separate risks covering a total payroll of not less than one and one-half million dollars; and

(7)that there is on deposit and thereafter maintained with such attorney and available for the payment of losses a fund, in cash or invested as provided by law, of not less than one million dollars. A reciprocal doing business in this state on August 25, 1989, shall not be subject to the foregoing deposit requirement insofar as such requirement would increase the amount of deposit necessary for the issuance of contracts on those classes of insurance being issued by it on such date, except that if such reciprocal, on and after such date, is determined by the director to be maintaining an amount which complies with such deposit requirement, then such reciprocal shall continue to be subject to such requirement. On and after such date, any reciprocal desiring to write any additional line of insurance as specified in section 44-201 shall thereupon deposit and maintain funds of at least one million dollars as provided in this section. This section shall be applicable to a reciprocal exchange issuing assessable or nonassessable policy contracts or agreements.