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Title 26 Insurance Code

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Change 1

What to do with it
As published

26-27-109. Power of attorney.

(a) The rights and powers of a reciprocal insurer's attorney are as provided in the power of attorney given it by the subscribers. (b) The power of attorney shall set forth: (i) That the attorney is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged; (ii) The powers of the attorney; (iii) The general services to be performed by the attorney; (iv) The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense, in addition to losses, to be paid by the insurer; and (v) Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount, which shall not be less than one (1) nor more than ten (10) times the premium deposit stated in the policy. (c) The power of attorney may: (i) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder; (ii) Impose any restrictions upon the exercise of the power as are agreed upon by the subscribers; (iii) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and (iv) Contain any other lawful provisions deemed advisable. (d) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no power or agreement shall be used or be effective in this state until approved by the commissioner.

Your change, as a redline

26-27-109. Power of attorney.

(a) The rights and powers of a reciprocal insurer's attorney are as provided in the power of attorney given it by the subscribers. (b) The power of attorney shall set forth: (i) That the attorney is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged; (ii) The powers of the attorney; (iii) The general services to be performed by the attorney; (iv) The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense, in addition to losses, to be paid by the insurer; and (v) Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount, which shall not be less than one (1) nor more than ten (10) times the premium deposit stated in the policy. (c) The power of attorney may: (i) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder; (ii) Impose any restrictions upon the exercise of the power as are agreed upon by the subscribers; (iii) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and (iv) Contain any other lawful provisions deemed advisable. (d) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no power or agreement shall be used or be effective in this state until approved by the commissioner.

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