Contingent Liability of Members

  1. Law
  2. Georgia Code
  3. Insurance
  4. Domestic Stock and Mutual Insurers
  5. Domestic Mutual Insurers
  6. Contingent Liability of Members

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  1. Each member of a domestic mutual insurer shall, except as provided in Code Section 33-14-71 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 the maximum amount stated in the insurer's charter.
  2. Each policy issued by the insurer shall contain a statement of the contingent liability, if any, of its members.
  3. Termination of the policy of any 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.
  4. Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.

(Ga. L. 1893, p. 73, § 20; Civil Code 1895, § 2029; Civil Code 1910, § 2411; Code 1933, § 56-230; Code 1933, § 56-1527, enacted by Ga. L. 1960, p. 289, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 77.

C.J.S.

- 44 C.J.S., Insurance, §§ 186, 192 et seq.

ALR.

- Liability of policyholders in mutual insurance companies to assessments, 137 A.L.R. 945.


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