Section 94H. There shall be maintained at all times in the hands of the attorney in fact, or trustees duly authorized for that purpose, assets in cash or securities equal to all outstanding claims and liabilities, including a reserve liability on contracts in force, that is premium reserve, calculated on the same basis as for mutual companies transacting the same kinds of business, except that during the provisional certifying period specified in section ninety-four D, said premium reserve shall be prorated to an amount commensurate with the number of contracts held and claims outstanding. There shall also be maintained as a surplus any additional sum necessary to meet the standards of solvency required of mutual companies transacting the same kinds of business which, in the case of exchanges, shall in no event be less than two hundred thousand dollars. Such surplus shall, in the case of a domestic exchange, be in cash or invested according to the laws applicable to the investment of the surplus of mutual companies transacting the same kinds of business. The attorney in fact or the subscribers may make deposits to maintain the surplus at the required amount, which shall be made upon condition that they shall not be repaid to the depositor until such time as repayment thereof will not reduce the surplus below the required amount. Exchanges shall be subject to section five, section twenty-three A and section one hundred and fifty-six A.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal insurance products you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with access to legal services through a network of provider law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our provider law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your provider law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal insurance products, and access to the LegalFix network of provider law firms are subject to the LegalFix Terms of Service and Privacy Policy.
