(a) Each member of a domestic mutual insurer shall, except as otherwise hereinafter provided with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shall be in such maximum amount as is stated in the insurer's articles of incorporation.
(b) Each policy issued by the insurer shall contain a statement of the contingent liability, if any, of its members.
(c) Termination of the policy of any such member shall not relieve the member of contingent liability for his proportion, if any, of the obligations of the insurer which accrued while the policy was in force.
(d) Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.
Structure West Virginia Code
Article 5. Organization and Procedures of Domestic Stock and Mutual Insurers
§33-5-2. Application of General Laws
§33-5-3. Articles of Incorporation
§33-5-4. Certificate of Incorporation
§33-5-5. Amendment of Articles of Incorporation
§33-5-6. Formation of Mutuals -- Applications for Insurance
§33-5-8. Formation of Mutuals -- Assets Required; Temporary Capital Stock
§33-5-12. Corporate Rights of Mutual Members
§33-5-13. Contingent Liability of Mutual Members
§33-5-14. Enforcement of Contingent Liability
§33-5-15. Mutual Nonassessable Policies
§33-5-16. Participating Policies
§33-5-17. Dividends to Stockholders
§33-5-18. Dividends to Mutual Members
§33-5-19. Illegal Dividends; Liability; Penalty
§33-5-20. Borrowing by Insurers
§33-5-21. Management and Exclusive Agency Contracts
§33-5-22. Impairment of Capital or Assets
§33-5-23. Mutualization of Stock Insurer
§33-5-24. Converting Mutual Insurer
§33-5-25. Mergers and Consolidations of Stock Insurers
§33-5-27. Redomestication of Stock and Mutual Insurers
§33-5-28. Mergers and Consolidations of Mutual Insurers