§ 58-15-120. Subscriber's agreement and power of attorney. - North Carolina Statutes

§58‑15‑120.  Subscriber's agreement and power of attorney.

(a)        Every subscriber ofa domestic reciprocal shall execute a subscriber's agreement and power ofattorney setting forth the rights, privileges, and obligations of thesubscriber as an underwriter and as a policyholder, and the powers and dutiesof the attorney.  The subscriber's agreement and power of attorney shallcontain in substance the following provisions:

(1)        A designation andappointment of the attorney to act for and bind the subscriber in alltransactions relating to or arising out of the operations of the reciprocal;

(2)        A provisionempowering the attorney (i) to accept service of legal process on behalf of thereciprocal and (ii) to appoint the Commissioner agent of the reciprocal upon whommay be served all legal process against the reciprocal;

(3)        Except fornonassessable policies, a provision for a contingent assessment liability ofeach subscriber in a specified amount in accordance with G.S. 58‑15‑60;and

(4)        The maximum amountto be deducted from advance premiums or deposits to be paid the attorney, andthe items of expense, in addition to losses, to be paid by the reciprocal.

(b)        The subscriber'sagreement may:

(1)        Provide for theright of substitution of the attorney and revocation of the power of attorney;

(2)        Impose anyrestrictions upon the exercise of the power agreed upon by the subscribers;

(3)        Provide for theexercise of any right reserved to the subscribers directly or through anadvisory committee;

(4)        Provide for indemnificationof the attorney, officers, employees, agents, and subscribers' advisorycommittee of the reciprocal against liability and litigation expenses to theextent permitted in the case of domestic business corporations; or

(5)        Contain other lawfulprovisions considered advisable. (1989, c. 425, s. 1.)