§ 23-72-118 - Conversion to level premium plan.

23-72-118. Conversion to level premium plan.

(a) A pro rata assessment insurer, by resolution of its board of directors approved by the Insurance Commissioner, may convert the whole or any part of its membership into a level or stipulated rate division. Thereafter, laws applicable to a level or stipulated rate insurer shall apply and govern the insurer or division so converted.

(b) The insurer shall segregate the funds and income of the two (2) classes and not intermingle funds where the insurer is operating on a pro rata assessment basis and with a division on a level or stipulated rate assessment basis.