Reciprocal Exchanges and Interinsurers

SECTION 27-17-11

§ 27-17-11. Advance of funds for reserves – Maintenance.

If it appears that the amount of funds required in §§ 27-17-7 – 27-17-10 has not been accumulated or maintained, then the subscribers, or the attorney for them, shall immediately advance any sums needed to comply with the provisions of §§ 27-17-7 – 27-17-10 and the advanced funds shall not be treated as a liability of the exchange, and the advances shall be repaid only out of the surplus over and above the minimum required by §§ 27-17-7 – 27-17-10. If the subscribers, or their attorneys for them, shall fail to advance sums necessary for the maintenance of the minimum reserves and surplus within thirty (30) days after receipt of notice from the commissioner, the commissioner may revoke its license to transact business in this state.

History of Section.
(P.L. 1952, ch. 3003, § 6; G.L. 1956, § 27-17-11.)