40-1505. Recovery of assessments; limitation of liability of member. - Kansas Statutes

40-1505

Chapter 40.--INSURANCE Article 15.--MUTUAL HAIL INSURANCE COMPANIES

      40-1505.   Recovery of assessments; limitation of liability of member. If any member shall for the space of thirty days after receiving notice,neglect or refuse to pay the sum assessed against him, the company may suefor and recover the amount of his deposit note or notes, with cost of suit;but execution shall only issue for assessments and costs as they accrue. Ifthe assets of the company shall be insufficient to pay the losses due themembers, in any one year, such members shall receive as payment in full fortheir respective losses a proportionate share of the assets of the company:Provided, That in calculating the pro rata amount to be paid eachmember on account of his loss, the total amount of the salaries andcommissions heretofore paid any officer of the company, during such year,shall be considered as a part of the assets of the company and such officershall receive the same proportionate share of his salary and commissions asthe members receive of their claims and shall be liable to the company forany salary and commissions in excess of the amount of his proportionateshare of such salary and commissions as aforesaid. The commissioner ofinsurance shall not renew the certificate of authority of such companyuntil the provisions of this section have been fully complied with:Provided further, That no member shall be liable to such a company formore than the whole amount of his premium.

      History:   L. 1927, ch. 231, 40-1505; June 1.