§ 58-20-20. Mutual agreement for indemnification.
§58‑20‑20. Mutual agreement for indemnification.
(a) An agreement madeunder this Article shall contain provisions for:
(1) A system or programof loss control;
(2) The termination ofmembership;
(3) The payment by theClub of all claims for which a member incurred liability during the period ofhis membership;
(4) The non‑paymentof claims where a member has individually retained the risk, or where the riskis not specifically covered, or where the amount of the claim exceeds thecoverage provided by the Club;
(5) The assessment ofmembers;
(6) The payment ofcontributions from members to satisfy deficiencies;
(7) The maintenance ofclaim reserves equal to known incurred losses and loss adjustment expenses andto an estimate of incurred but not reported losses; and
(8) Final accounting andsettlement of the obligations or refunds to a terminating member when allincurred claims are settled.
(b) The agreementrequired by this section may also include provisions authorizing the Club to:
(1) To establish officeswhere necessary in this State, and employ necessary staff to carry out itspurposes;
(2) Retain legalcounsel, actuaries, claims adjusters, auditors, engineers, private consultants,and advisors, and other persons as the board of trustees or the administratordeem to be necessary;
(3) Amend or repeal itsbylaws;
(4) Purchase, lease, orrent real and personal property as it deems necessary; and
(5) Enter intoagreements with financial institutions that permit it to issue checks or othernegotiable instruments in its own name. (1987, c. 330.)