58-5-12. Bond required of mutual insurer before soliciting applications for insurance--Filing by incorporators--Amount, conditions.
120 words·~1 min read·
/sd/title-58/chapter-58-5/58-5-12·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Before soliciting any applications for insurance as permitted under § 58-5-21 , the incorporators of the proposed insurer shall file with the director a continuing corporate surety bond in the penal sum of twenty - five thousand dollars, to be approved by the director, in favor of the state. The bond shall be conditioned as follows:
(1)For payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the corporation in the event the corporation fails to complete its organization and secure a certificate of authority within one year from the date of its certificate of incorporation; and
(2)For the prompt return to applicant members of all premiums collected in advance.