(a) The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscribers adopt.

Terms Used In Alabama Code 27-31-19

  • Attorney: as used in this chapter , refers to the attorney-in-fact of a reciprocal insurer. See Alabama Code 27-31-5
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
(b) Not less than two thirds of such committee shall be subscribers other than the attorney or any person employed by, representing, or having a financial interest in the attorney.
(c) The committee shall:

(1) Supervise the finances of the insurer;
(2) Supervise the insurer’s operations to such extent as to assure conformity with the subscriber’s agreement and power of attorney;
(3) Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and
(4) Have such additional powers and functions as may be conferred by the subscribers’ agreement.
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