Sec. 31-332. Policies. Number of members required.
Sec. 31-332. Policies. Number of members required. No policies shall be issued
by any such association until members in such numbers and with such numbers of
employees as the Insurance Commissioner may decide will give a fair diffusion of risks
have obligated themselves to take policies immediately upon their authorization, nor
shall any policies be issued except such as the Insurance Commissioner has approved
as conforming in all respects to the requirements of this chapter. In conformance with
the provisions of section 31-284, policies may be issued covering claims only in excess
of a certain amount. If, at any time, by the retirement of members, reduction of numbers
of employees or other cause, the membership of any association appears to the Insurance
Commissioner no longer to afford a fair diffusion of risks, he may suspend or forbid
the further issue of policies until the former conditions of the association have been
restored.
(1949 Rev., S. 7472; 1958 Rev., S. 31-199; 1961, P.A. 491, S. 58; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 209, 348;
P.A. 81-472, S. 63, 159.)
History; 1961 act entirely replaced previous provisions; P.A. 77-614 placed insurance commissioner within department
of business regulation and made insurance department a division within that department, effective January 1, 1979; P.A.
80-482 restored insurance division as independent department with commissioner as its head, deleting reference to abolished
department of business regulation; P.A. 81-472 made technical changes.