(a) Each member of a domestic mutual insurer shall, except as otherwise hereinafter
provided with respect to nonassessable policies, have a contingent liability, pro
rata and not one for another, for the discharge of its obligations, which contingent
liability shall be in such maximum amount as is stated in the insurer's articles of
(b) Each policy issued by the insurer shall contain a statement of the contingent
liability, if any, of its members.
(c) Termination of the policy of any such member shall not relieve the member of contingent
liability for his proportion, if any, of the obligations of the insurer which accrued
while the policy was in force.
(d) Unrealized contingent liability of members does not constitute an asset of the
insurer in any determination of its financial condition.
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