Formation Of Mutuals — Trust Deposit Of Premiums — Issuance Of Policies

TITLE 41 INSURANCE CHAPTER 28 ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS 41-2823. Formation of mutuals — Trust deposit of premiums — Issuance of policies. (1) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement approved by the director and consistent with this section and with section 41-2822 (3)(c). The corporation shall file an executed copy of such trust agreement with the director. (2)  Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which such applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall thereafter in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.