Mutual insurers, insurance applications

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  • All applications for insurance obtained in forming a mutual insurer shall provide that—
    • (1) issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a certificate of authority;

    • (2) the prepaid premium or deposit will be refunded in full to the applicant if the organization is not completed and certificate of authority issued prior to the solicitation permit's date of expiration; and

    • (3) the agreement for insurance is not effective until a policy has been issued under it.


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