Insurance Law 6621 — Legislation
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SECTION 6620
Non-assessable policies; advance premium corporations
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ARTICLE 66
Co-operative Property/casualty Insurance Companies
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SECTION 6622
Refunds from surplus; assessment corporations
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SECTION 6621
Unabsorbed portions of premium payments
Insurance (ISC) CHAPTER 28, ARTICLE 66
§ 6621. Unabsorbed portions of premium payments. (a) Subject to the
requirements of this article for the accumulation and maintenance of
minimum surplus, the surplus of any advance premium corporation shall be
eligible for equitable distribution to its members as unabsorbed
portions of premium payments; but no unabsorbed portion of premium
payments shall be returned or distributed until authorized by the
corporation's board of directors nor until approved by the
superintendent.
(b) In authorizing any such return of unabsorbed portion of premium
payments, the board of directors of such a corporation may provide for
an apportionment thereof among separate groups of members on the basis
of earned premiums equitably classified according to major kinds of
insurance.
(c) This section shall not prohibit the return of the unabsorbed
portion of premium payments on an equitable basis to policyholders in
other states or under reinsurance contracts.