§58-20-20. Mutual agreement for indemnification

(a)        An agreement made under this Article shall contain provisions for:

(1)        A system or program of loss control;

(2)        The termination of membership;

(3)        The payment by the Club of all claims for which a member incurred liability during the period of his membership;

(4)        The non-payment of claims where a member has individually retained the risk, or where the risk is not specifically covered, or where the amount of the claim exceeds the coverage provided by the Club;

(5)        The assessment of members;

(6)        The payment of contributions from members to satisfy deficiencies;

(7)        The maintenance of claim reserves equal to known incurred losses and loss adjustment expenses and to an estimate of incurred but not reported losses; and

(8)        Final accounting and settlement of the obligations or refunds to a terminating member when all incurred claims are settled.

(b)        The agreement required by this section may also include provisions authorizing the Club to:

(1)        To establish offices where necessary in this State, and employ necessary staff to carry out its purposes;

(2)        Retain legal counsel, actuaries, claims adjusters, auditors, engineers, private consultants, and advisors, and other persons as the board of trustees or the administrator deem to be necessary;

(3)        Amend or repeal its bylaws;

(4)        Purchase, lease, or rent real and personal property as it deems necessary; and

(5)        Enter into agreements with financial institutions that permit it to issue checks or other negotiable instruments in its own name.

(1987, c. 330.)