40-1608. Bond of attorney and employees.

40-1608

Chapter 40.--INSURANCE
Article 16.--RECIPROCAL OR INTERINSURANCE CONTRACTS

      40-1608.   Bond of attorney and employees.The attorney-in-fact of a reciprocal,or any employee having the care and handling of the funds and securities ofa reciprocal, shallmaintain a goodand sufficient bond running to the board ofdirectors of the reciprocal conditioned for thefaithful accounting and disbursement of all money that may come intosuch attorney-in-fact's or employee's hands; such bond may be executedby a surety company or may be a personalbond approved by the commissioner of insurance. Such bond shall befixed in an amount and approved by theboard of directors or other governing body ofsuch reciprocal. In lieu of filing the bond, theattorney-in-fact may maintain on deposit with the commissioner an equivalentamount in approved securities which are subject to the same conditions as thebond.

      History:   L. 1927, ch. 231, 40-1608;L. 2000, ch. 170, § 24; July 1.