§ 27-17-14 - Cash premium deposit and contingent liability of subscriber. - Rhode Island Statutes

SECTION 27-17-14

   § 27-17-14  Cash premium deposit andcontingent liability of subscriber. – The power of attorney under which any contracts of insurance are exchangedpursuant to this chapter shall provide for a cash premium deposit and acontingent liability of the subscriber during each annual period of the term ofeach contract of insurance issued to the subscriber to be fixed in the power ofattorney, but in an amount not less than one nor more than ten (10) times theamount of the annual portion of the cash premium deposit stated in thecontract, except that exchanges which have a required surplus equal to threehundred fifty thousand dollars ($350,000) or to the minimum capital, if any,required of a stock insurance company transacting the same kind or kinds ofbusiness, whichever is greater, may issue policies without contingentliability; provided, that the exchange which shall have issued policies withoutcontingent liability after the acquisition of the surplus may continue to do soonly so long as it maintains a surplus in the amount required by this section,and no exchange shall issue any non-assessable policies, except during a timeas it shall continue to maintain the surplus.