Sec. 31-335. Premium rates. Reserve notes.
Sec. 31-335. Premium rates. Reserve notes. Each association shall have power
to determine the comparative premium rates for each occupation or risk insured by it
and to prescribe rates of cash premiums sufficient to cover the current cost. Such premium rates shall prevail for the fiscal year of the association, but they may be changed
annually by the directors. The current cost herein specified shall be such an amount as
is estimated to cover the expenses and the claims or portions of claims payable within
the same fiscal year within which they originated. Members of each association shall
be required to pay yearly in advance cash premiums for current costs, and in addition
thereto an amount in negotiable notes sufficient to maintain a reserve equal to that
required by statute of stock or commercial casualty companies for similar classes of
risks. These notes shall be payable on the call of the treasurer of the association as they
may be required to meet estimated losses or expenses in excess of the current cost or
to meet claims covering losses not payable within the same fiscal year within which the
claim originated. The directors may, in their discretion, fix rates of interest on either
notes or balances.
(1949 Rev., S. 7475; 1958 Rev., S. 31-202; 1961, P.A. 491, S. 61.)
History: 1961 act entirely replaced previous provisions.