(a) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability and not joint.
(b) Except as to a nonassessable policy, each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his policy was in force. Such contingent liability may be at the rate of not less than one nor more than 10 times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in Section 27-31-24.
(c) Each assessable policy issued by the insurer shall contain a statement of the contingent liability.
Structure Code of Alabama
Chapter 31 - Reciprocal Insurers.
Section 27-31-1 - Definitions.
Section 27-31-2 - Applicability of Chapter.
Section 27-31-3 - Powers Generally.
Section 27-31-4 - Business Name; Actions.
Section 27-31-6 - Surplus Funds of Domestic Insurer.
Section 27-31-8 - Certificate of Authority - Issuance; Refusal, Suspension, or Revocation.
Section 27-31-9 - Power of Attorney.
Section 27-31-10 - Modifications of Subscribers' Agreement or Power of Attorney of Domestic Insurer.
Section 27-31-11 - Bond of Attorney of Domestic Insurer - Requirements.
Section 27-31-12 - Bond of Attorney of Domestic Insurer - Deposit in Lieu Thereof.
Section 27-31-13 - Action on Bond or Deposit in Lieu Thereof.
Section 27-31-14 - Service of Process on Domestic Insurer; Judgment Thereon.
Section 27-31-15 - Advancement of Funds to Domestic Insurers.
Section 27-31-16 - Annual Statement; Supplemental Information.
Section 27-31-17 - Determination of Financial Condition.
Section 27-31-18 - Subscribers; Exchange of Insurance Contracts; Liability of Representatives.
Section 27-31-19 - Subscribers' Advisory Committee of Domestic Insurer.
Section 27-31-20 - Liability of Subscribers - Generally.
Section 27-31-21 - Liability of Subscribers - Judgment.
Section 27-31-22 - Levy of Assessments on Subscribers of Domestic Insurers - Generally.
Section 27-31-23 - Levy of Assessments on Subscribers of Domestic Insurers - Time Limit.
Section 27-31-24 - Levy of Assessments on Subscribers of Domestic Insurers - Aggregate Liability.
Section 27-31-25 - Nonassessable Policies.
Section 27-31-26 - Distribution of Unused Premiums, Etc.
Section 27-31-27 - Distribution of Assets Upon Liquidation of Domestic Insurer.
Section 27-31-28 - Merger or Conversion of Domestic Insurer.
Section 27-31-29 - Proceedings When Assets of Insurer Insufficient.