58-20-20. Mutual agreement for indemnification.
(a) An agreement made under this Article shall contain provisions for:
(1) A system or program of loss control;
(2) The termination of membership;
(3) The payment by the Club of all claims for which a member incurred liability during the period of his membership;
(4) The non-payment of claims where a member has individually retained the risk, or where the risk is not specifically covered, or where the amount of the claim exceeds the coverage provided by the Club;
(5) The assessment of members;
(6) The payment of contributions from members to satisfy deficiencies;
(7) The maintenance of claim reserves equal to known incurred losses and loss adjustment expenses and to an estimate of incurred but not reported losses; and
(8) Final accounting and settlement of the obligations or refunds to a terminating member when all incurred claims are settled.
(b) The agreement required by this section may also include provisions authorizing the Club to:
(1) To establish offices where necessary in this State, and employ necessary staff to carry out its purposes;
(2) Retain legal counsel, actuaries, claims adjusters, auditors, engineers, private consultants, and advisors, and other persons as the board of trustees or the administrator deem to be necessary;
(3) Amend or repeal its bylaws;
(4) Purchase, lease, or rent real and personal property as it deems necessary; and
(5) Enter into agreements with financial institutions that permit it to issue checks or other negotiable instruments in its own name.