Section 58-34-47 - Extinguishment of contingent liability of all subscribers required for authorization of nonassessable policies

58-34-47. Extinguishment of contingent liability of all subscribers required for authorization of nonassessable policies.The director shall not authorize a domestic reciprocal insurer so to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its subscribers and in all such policies for all kinds of insurance transacted by it. Except, that if required by the laws of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its subscribers as may acquire such policies in such state, and need not extinguish the contingent liability applicable to policies theretofore in force in such state. Source: SL 1966, ch 111, ch 19, §26 (3).