40-1504. Assessments; adjustment and payment of losses; losses paid when adjusted, when.
40-1504
40-1504. Assessments; adjustment and payment of losses; losses paidwhen adjusted, when.The directors of every such company on the first day of August of eachyear, or as soon thereafter as practicable, shall meet and review alladjustments and determine the rate of assessment necessary to pay alllosses and expenses in full, and to maintain the reserve fund hereinafterrequired, and shall levy such assessment at once. All assessments shall bedue at the home office of the company not later than thirty days after thedate such assessment is made. All losses shall be adjusted by the companypromptly upon receipt of notice thereof, in compliance with the provisionsof such policy, and all adjusted losses shall be paid prior to December 1.Any company may pay its losses as soon as adjusted if such company shallhave submitted its plan for payment of such losses together with all of itsreinsurance contracts and a current financial statement to the commissionerof insurance, and shall have secured the written approval of such plan. Thecommissioner shall not approve any plan unless it is clearly indicated thatthe company will be able to meet all of its obligations when due.
History: L. 1927, ch. 231, 40-1504; L. 1953, ch. 232, § 1; L. 1959, ch. 215, §1; June 30.