Associations engaged in writing hail insurance may, as concerns such insurance, provide in their bylaws and policies for a limited assessment in any one year.
The books of any association which relate to hail insurance business shall be closed and balanced as of the thirty-first day of December of each year, and the aggregate amount of assessments and other sums paid by the members during the year, and the aggregate amount of losses paid including those in the process of adjustment and/or litigation during the year, shall be ascertained.
Not less than fifty percent of such aggregate amount of assessments, and other sums paid by the members shall be returned to the members, either through the payment of losses or through discounts, credits, or dividends, to be credited on the assessments required for the current or succeeding year, or, at the discretion of the board of directors, may be set aside as surplus to policyholders, but no sum less than forty percent of such aggregate assessments, and other sums paid by the members, shall be returned to the members through payment of such losses or through discounts, credits, or dividends during the current or succeeding year.
In the event that losses sustained exceed a sum equal to fifty percent of such aggregate assessments and other sums paid by the members, such losses shall be paid from any emergency or surplus funds then in existence, and if the total funds available for the payment of losses is insufficient to pay such losses, such funds shall be prorated among the members sustaining such losses.
Such losses shall be due and payable on or before the twentieth day of January of the year succeeding that in which they occur, except such as may be then in dispute or litigation.
[C24, 27, 31, 35, 39, § 9043; C46, 50, 54, 58, 62, § 518.17; C66, 71, 73, 75, 77, 79, 81, § 518A.17]
95 Acts, ch 185, §34
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