SECTIONS 7080-7093 - California Statutes

INSURANCE CODE

SECTION 7080-7093

7080. Five or more insurers, operating under Chapter 5 of this part
and having insurance liabilities exceeding a total of $150,000 which
they wish to reinsure, may incorporate for the purpose of mutual
reinsurance against any loss or damage by any hazard which county
mutual fire insurers may insure.

7081. Upon payment in advance of two hundred fifty dollars ($250)
cash, lawful money of the United States, to the commissioner for all
services to be rendered by him in the matter of the organization of
the reinsurer, such insurers shall first file with the commissioner a
declaration of their intention to incorporate such a reinsurer.

7082. The declaration shall be signed by the president and
secretary of each of the incorporators. It shall be accompanied by a
certified copy of a resolution passed by the board of directors of
each incorporator stating that it is the desire of the particular
insurer to become one of the incorporators. Such declaration shall
also contain a copy of the articles of incorporation proposed to be
adopted.

7083. The articles shall be executed by each incorporator through
its president or secretary, each signature being acknowledged as
required by the general corporation law.

7084. The commissioner shall examine the proposed articles of
incorporation, and if they conform to this chapter, he shall deliver
to such incorporators a certificate permitting them to incorporate as
such reinsurer. The certificate shall contain the proposed articles
of incorporation.

7085. Upon filing with the Secretary of State of the articles of
incorporation and the certificate provided for in Section 7084, the
incorporation of the reinsurer shall be complete and it may engage in
business as such reinsurer upon applying for and obtaining from the
commissioner a certificate of authority. The term and nature of such
certificate of authority, annual renewal fee therefor, the due date
and delinquent date of such fee shall be the same as provided by
Article 3, Chapter 1, Part 2, Division 1, of this code for stock and
mutual insurers governed by said article. No county mutual fire
reinsurer shall transact business in this State without a valid and
subsisting certificate of authority as provided for herein; provided,
however, that any such reinsurer presently authorized to conduct
such business shall not be required to pay the first ten dollars
($10) annual certificate of authority fee until April 1, 1964.

7086. Three delegates shall be elected by each member at its
regular annual meeting to represent it at all meetings of the
reinsurer.

7087. The delegates shall be elected by ballot and shall hold
office for one year, or until their successors have been elected and
qualified.

7088. The annual meeting of the members of the reinsurer shall be
held on the third Monday in February of each year.

7089. At such meeting one director shall be elected from the
delegates of each member so that the number of directors is equal to
the number of members of the reinsurer. The by-laws shall fix the
manner of, and time for, increasing or diminishing the number of
member insurers and, correspondingly, of directors. A majority of the
directors shall constitute a quorum for the transaction of business.

7090. In the election of the first board of directors each member
insurer shall be entitled to one vote. At every subsequent election,
each delegate from each member shall have as many votes as there are
directors to be elected, and he may cast the votes in person or by
proxy, distributing them among the directors to be elected or among a
less number of directors, or cumulating them upon one candidate as
he sees fit.

7091. The directors of the reinsurer shall elect from their own
number a president, a vice president, and an executive committee of
three. They shall also elect a treasurer and a secretary, who need
not be members of any member insurer nor natural persons.

7092. The directors and all of such officers shall hold office for
one year from the date of their election, and until their successors
are elected and qualified.

7093. The treasurer and secretary shall give bonds to the reinsurer
in such amounts as are prescribed by the board of directors,
conditioned upon the faithful performance of their duties.