Montana Code Annotated
Part 4. Finance
33-3-412. Levy of contingent liability

33-3-412. Levy of contingent liability. (1) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it by this code for authority to transact the kinds of insurance being transacted and the deficiency is not cured from other sources, its directors shall levy an assessment only upon its members who held policies providing for contingent liability at any time within the 12 months preceding the date notice of the assessment was mailed to them, and the members are liable to the insurer for the amount assessed.
(2) The assessment must be for an amount that is required to cure the deficiency and to provide a reasonable amount of working funds in excess of the minimum amount of surplus, but the working funds provided may not exceed 5% of the insurer's liabilities as of the date that the amount of the deficiency was determined.
(3) In levying an assessment upon a policy providing for contingent liability, the assessment must be computed on the basis of the premiums earned on the policy during the period to which the assessment relates.
(4) A member may not have an offset against any assessment for which the member is liable on account of any claim for unearned premium or loss payable.
(5) As to life insurance, any part of an assessment upon a member that remains unpaid following notice of assessment, demand for payment, and lapse of a reasonable waiting period as specified in the notice may, if approved by the commissioner as being in the best interests of the insurer and its members, be secured by placing a lien upon the cash surrender values and accumulated dividends held by the insurer to the credit of the member.
History: En. Sec. 447, Ch. 286, L. 1959; R.C.M. 1947, 40-4730; amd. Sec. 1139, Ch. 56, L. 2009.

Structure Montana Code Annotated

Montana Code Annotated

Title 33. Insurance and Insurance Companies

Chapter 3. Domestic Stock and Mutual Insurers

Part 4. Finance

33-3-401. Home office and records -- administrative or civil penalty for unlawful removal of records or assets

33-3-402. Vouchers for expenditures

33-3-403. through 33-3-410 reserved

33-3-411. Contingent liability of mutual members

33-3-412. Levy of contingent liability

33-3-413. Enforcement of contingent liability

33-3-414. Nonassessable policies of mutual insurers

33-3-415. Insufficient reserves -- nonassessable policies prohibited -- revocation of authority

33-3-416. through 33-3-420 reserved

33-3-421. Participating policies

33-3-422. Dividends to stockholders

33-3-423. Dividends to mutual policyholders

33-3-424. Illegal dividends -- administrative or civil penalty

33-3-425. through 33-3-430 reserved

33-3-431. Borrowed surplus

33-3-432. Impairment of capital or assets

33-3-433. Assessment of stockholders or members

33-3-434. Directors' liability for losses during deficiency

33-3-435. Stock transfer during impairment of capital

33-3-436. Mutual member's share of assets on liquidation

33-3-437. through 33-3-440 reserved

33-3-441. Equity securities of domestic stock insurance company -- statement of ownership

33-3-442. Inside trading of securities -- profit inures to company -- limitation of action to recover -- rules

33-3-443. Short sales of equity securities prohibited -- time for delivery after sale

33-3-444. Exemptions -- securities held in an investment account -- primary or secondary market -- rules

33-3-445. Exemptions -- arbitrage transactions

33-3-446. Exemptions -- registered securities -- holding by less than 100 persons

33-3-447. Rules of commissioner -- classifications -- effect

33-3-448. and 33-3-449 reserved

33-3-450. Purpose

33-3-451. Definitions

33-3-452. Use of book-entry systems -- rules

33-3-453. Deposit of securities by insurance companies