SECTIONS 8090-8097 - California Statutes

INSURANCE CODE

SECTION 8090-8097

8090. When the amount of any ascertained loss exceeds the cash
funds of the reinsurer and also exceeds one-eighth of one per cent of
the total amount of the insurance in force in the reinsurer, the
president shall convene its directors. On so convening, the directors
shall assess each member in proportion to the member's reinsurance,
taken in connection with the rate of premium under which such
reinsurance is classified.

8091. When the amount of such loss does not exceed one-eighth of
one per cent of the total amount of insurance in force in the
reinsurer, the directors may, by resolution in writing signed by
two-thirds of all the directors while present at a meeting, borrow in
the name of the reinsurer and give its evidence of indebtedness
therefor, in an amount not exceeding one-eighth of one per cent of
the total amount of such insurance in force.

8092. The term of such loan shall not be longer than twelve months,
and the date of maturity shall not be more than thirty days beyond
the date of the next annual meeting of the reinsurer.

8093. The board of directors may at their annual meeting levy an
assessment not exceeding twenty-five cents on the $100 of
reinsurance. The sum so raised shall constitute a reserve fund to be
used in emergency cases only. Another assessment for this purpose
shall not be made while this reserve fund remains intact.

8094. Whenever an assessment is made, the secretary shall
immediately notify every member by registered letter addressed to the
secretary of the member at its usual post-office address, stating:
(a) The amount of such loss.
(b) The sum due from the member as its share.
(c) To whom payment is to be made.
(d) The time, not less than thirty nor more than ninety days from
the date of mailing notice, when payment is to be made.

8095. An action may be brought against any member of such reinsurer
that neglects or refuses to pay the liabilities due such reinsurer.

8096. The directors of any such reinsurer who wilfully refuse or
neglect to perform the duties imposed upon them by law or by the
by-laws of the reinsurer are liable in their individual capacity to
the reinsurer sustaining loss.

8097. An action may also be brought and maintained against any such
reinsurer by members thereof to recover sums owing them for losses
sustained when payment is withheld after the amount of such losses is
determined and is due by the terms of the policy.