In determining the financial condition of a reciprocal insurer the commissioner shall apply the following rules:
- (1) The commissioner shall charge as liabilities the same reserves that are required of incorporated insurers issuing nonassessable policies on a reserve basis.
- (2) The surplus deposits of subscribers must be allowed as assets, except that any premium deposits delinquent for 90 days must first be charged against the surplus deposit.
- (3) The surplus deposits of subscribers may not be charged as a liability.
- (4) All premium deposits that are delinquent for less than 90 days must be allowed as assets.
- (5) An assessment levied upon subscribers and not collected may not be allowed as an asset.
- (6) The contingent liability of subscribers may not be allowed as an asset.
- (7) The computation of reserves must be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.
History: En. Sec. 553, Ch. 286, L. 1959; R.C.M. 1947, 40-5016; amd. Sec. 1159, Ch. 56, L. 2009.