693A.220 - Mutual insurers: Contingent liability of members. - Nevada Statutes

693A.220  Mutual insurers: Contingent liability of members.

      1.  Except as otherwise provided in NRS 693A.250 with respect to nonassessable policies, each member of a domestic mutual insurer shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations incurred while such member was a policyholder of the insurer, which contingent liability shall be in such maximum amount, not less than one nor more than six times the premium for the member’s policy at the annual premium rate, as shall be specified in the insurer’s articles of incorporation.

      2.  Every policy issued by the insurer shall contain a statement of the contingent liability.

      3.  Termination of the policy of any such member shall not relieve the member of contingent liability for the member’s proportion of the obligations of the insurer which accrued while the policy was in force.

      4.  Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.

      (Added to NRS by 1971, 1806)