North Carolina General Statutes 58-15-60. Subscribers’ contingent liability
(a) Each subscriber insured under an assessable policy has a contingent assessment liability for payment of actual losses and expenses incurred by the reciprocal while his policy was in force.? This liability is in the amount provided for in the power of attorney or subscriber’s agreement.
(b) The contingent assessment liability on any one policy in any one calendar year equals the premiums earned, as defined in N.C. Gen. Stat. § 58-15-135, on the policy for that year multiplied by not more than ten.
(c) The contingent assessment liability is several and not joint.
(d) Each assessable policy issued by the reciprocal shall plainly set forth a statement of the contingent assessment liability on the front of the policy in capital letters, in contrasting color, and in no less than ten-point type. (1989, c. 425, s. 1.)
Terms Used In North Carolina General Statutes 58-15-60
- 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
- Reciprocal: means an aggregation of subscribers under a common name. See North Carolina General Statutes 58-15-5
- Subscriber: means a person obligated under a reciprocal insurance agreement. See North Carolina General Statutes 58-15-5