Annual Statement — Compliance With Filing Requirements for Personal Risk Insurers — Cancellation of Policy of Insurance — Dividends
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Every county mutual insurance company operating under this chapter shall file an annual statement with the commissioner on or before March 1 of each year that reports the company's financial condition and business on December 31 of the previous year. The annual statement shall be submitted on a form the commissioner may prescribe and shall be accompanied by a fee as provided for in § 56-4-101(a)(4).
Any county mutual insurance company failing to make and file the annual statements required by this section shall have its authority to do new business suspended until the time that the required annual statement is filed and shall pay a fine of one hundred dollars ($100) a day for the period during which the county mutual insurance company's authority is suspended. Any suspension of a county mutual insurance company's authority to write new business shall not preclude or otherwise bar the commissioner from levying any other penalties or take any other actions allowed under this chapter.
The annual statement as filed with the commissioner under this section shall be presented at the annual meeting of the county mutual insurance company and shall be available for examination by any policyholder of the county mutual insurance company during its regular business hours.
Every county mutual insurance company operating under this chapter shall prepare its annual statement and any other financial information required under this chapter in accordance with rules promulgated by the commissioner and the National Association of Insurance Commissioners accounting practices and procedures manual in effect for the period covered by the annual statement.
Every county mutual insurance company shall comply with the filing requirements for personal risk insurers found in § 56-5-105. All rates and forms shall be reviewed under the standards set forth in §§ 56-5-103 and 56-5-104. The commissioner may disapprove the rates or forms pursuant to the process outlined in § 56-5-108.
The cancellation by a county mutual insurance company of a policy of insurance is subject to the same standards as those set forth in chapter 7, part 19 of this title, as may be applicable.
Subject to the restrictions provided in this section, a county mutual insurance company may pay a dividend to its policyholders as the board of directors may determine. The amount of dividends paid during any calendar year by a county mutual insurance company shall not exceed ten percent (10%) of the lowest level of accumulated surplus existing on any day during the same calendar year. All proposed dividend payments shall be filed with the commissioner at least thirty (30) days prior to the proposed payment date. The commissioner may promulgate, by rule, standards by which dividends will be reviewed. Any decision by the commissioner to disapprove a proposed dividend of a county mutual insurance company may be reviewed as a contested case pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the county mutual insurance company requests a hearing within thirty (30) days after the denial of the proposed dividend request.