A-32 - Act respecting insurance

Section 278 Disposition versions

1985-09-11

278. (Repealed).

1974, c. 70, s. 278; 1985, c. 17, s. 36.

1977-12-31

278. The directors of every mutual fire insurance association or mutual company of insurance against fire, lightning and wind have, when they establish the assessments, the power to create a reserve consisting of all amounts remaining in the possession of the association at the end of each year after payment of ordinary expenditures and losses. This reserve may be used thereafter to make the assessments uniform, from year to year.

The annual assessment levied to provide for such reserve must not exceed 10 per cent of the total amount of the subscription notes.

This reserve shall be divided only in the case of dissolution of the association or abandonment of business. It shall then be distributed among the actual members and among those who have been so within the five years preceding the decree of dissolution.

1974, c. 70, s. 278.