SECTIONS 5090-5094 - California Statutes

INSURANCE CODE

SECTION 5090-5094

5090. Any person having an insurable interest in property in the
county in which any such insurer is formed or any person having such
an interest in property in any adjoining county may become a member
by insuring therein. Every member shall be entitled to all the rights
and privileges appertaining to membership, except that at least a
majority of the directors shall reside either in the county in which
the insurer is formed or in any of the counties which were the
original domicile of any of the constituent companies of a county
mutual merged under Article 9.5 (commencing with Section 7040) of
this chapter, and not more than one member from each of the adjoining
counties in which it transacts insurance may become one of its
directors. Whenever any public or private corporation, board or
association in this State has entered into an agreement for and holds
a policy in any county mutual insurer operating under this chapter,
any officer, stockholder or trustee of any such corporation, board or
association may be recognized as acting for or on its behalf for the
purpose of such membership, but shall not be personally liable upon
such contract of insurance by reason of acting in such representative
capacity. The right of any corporation organized under the laws of
this State to participate as a member of such county mutual insurer
is hereby declared to be incidental to the purpose for which such
corporation is organized and as much granted as the rights and powers
expressly conferred.

5090.2. Not more than one person licensed as an insurance agent,
broker or solicitor, or who is a member of an association or
partnership or a stockholder or employee of a corporation which is so
licensed is eligible to be a director of a county mutual insurer. If
a director of the board is licensed as an insurance agent, broker or
solicitor, or is a member of an association or partnership or a
stockholder or employee of a corporation which is so licensed,
neither he nor the association, partnership or corporation shall
transact insurance with or for a county mutual insurer as an agent,
broker or solicitor, or receive any commission from a county mutual
insurer.
The secretary or other person who passes upon the risks and upon
whose decisions or recommendations the application for insurance is
accepted or rejected by the insurer, shall not receive, as any part
of his compensation, a commission upon the premiums. His compensation
shall be determined by the directors.

5091. Any member of such insurer may commence to withdraw therefrom
by surrendering his policy for cancellation, and by giving notice in
writing to the secretary at any time during the life of the policy
and while the insurer continues the business for which it was
organized.

5092. The withdrawal may be completed by paying the member's share,
if any, under the terms of his policy, of all claims that exist
against the insurer on the day of such completion.

5093. The insurer may cancel any policy by giving the insured 20
days' written notice of cancellation with or without tender of the
excess of paid premium above the pro rata premium for the expired
time, which excess, if not tendered, shall be refunded on demand.
Notice of cancellation shall state that the excess premium (if not
tendered) will be refunded on demand. The notice may be served in
person or by mail, addressed either to the member's last post office
address or, if this is not known, to the address given upon the
application which is part of the policy.

5094. In case of cancellation by the insurer it shall also notify
in the same manner any holder of a mortgage whose name appears,
either on the signed application which is a part of the policy, or
otherwise upon the policy and any party to whom loss, if any, is
payable.