33-3-207. Formation of mutuals -- trust deposit of premiums -- issuance of policies. (1) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement consistent with this section and with 33-3-206(3)(c). The corporation shall file an executed copy of such trust agreement with the commissioner.
(2) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which such applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall thereafter in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.
History: En. Sec. 428, Ch. 286, L. 1959; R.C.M. 1947, 40-4711.
Structure Montana Code Annotated
Title 33. Insurance and Insurance Companies
Chapter 3. Domestic Stock and Mutual Insurers
33-3-202. Articles of incorporation -- approval
33-3-203. Amendment of articles of incorporation -- grounds for disapproval
33-3-204. Initial qualifications -- domestic mutuals
33-3-205. Formation of mutual insurer -- bond
33-3-206. Applications for insurance in formation of mutual insurer
33-3-207. Formation of mutuals -- trust deposit of premiums -- issuance of policies
33-3-208. Formation of mutuals -- failure to qualify
33-3-209. through 33-3-214 reserved
33-3-215. Mutualization of stock insurer
33-3-216. Converting mutual insurer to stock insurer