SECTIONS 4060-4064 - California Statutes

INSURANCE CODE

SECTION 4060-4064

4060. A domestic mutual insurer while maintaining unimpaired
surplus funds not less in amount than one and one-half times the
minimum paid-in capital stock required of a domestic stock insurer
formed under this code for authority to transact the same class or
classes of insurance, may, upon receipt of the commissioner's
certificate so authorizing, extinguish the contingent liability to
assessment of its members as to all its policies in force and may
omit provisions imposing contingent liability in all policies
currently issued. A fee of one hundred eighteen dollars ($118) shall
accompany any application for such a certificate.

4061. The commissioner shall not authorize a domestic insurer to
extinguish the contingent liability of any of its members or in any
of its policies to be issued, unless it qualifies to and does
extinguish such liability of all its members and in all such policies
for all kinds of insurance transacted by it. No assessment shall be
levied against any member or subscriber with respect to any
nonassessable policy issued when the insurer had an unrevoked
certificate to issue nonassessable policies.

4062. A foreign or alien mutual insurer may issue nonassessable
policies to its members in this State pursuant to its charter and the
laws of its domicile.

4063. The commissioner shall revoke the certificate of a domestic
mutual insurer to issue policies without contingent liability if
(a) At any time the insurer's assets are less than the sum of its
liabilities and the surplus required for such certificate, or
(b) The insurer, by resolution of its board of directors approved
by a majority of its members, requests that the certificate be
revoked.

4064. During the absence of such certificate the insurer shall not
issue any policy without providing therein for the contingent
liability of the policyholder, nor renew any policy which is then in
force without endorsing the same to provide for such contingent
liability.