2004 Minnesota Statutes

     67A.17 Assessments. 

    Subdivision 1.    Determination.  When any loss shall 
 be ascertained which exceeds in amount the cash funds of the 
 company, the secretary, or, in the secretary's absence, the 
 president, shall convene the directors, who shall levy an 
 assessment upon each policyholder for the proportionate amount 
 to be paid to cover this excess; or the company may borrow not 
 to exceed two mills on each dollar of insurance written by it 
 and then in force, and from this fund pay these losses, and 
 afterwards levy assessments to pay the loans.  

    If the fund for the payment of expenses is insufficient, 
 the amount of the deficiency may be added to any assessment.  

    Subd. 1a.    Advance premiums or assessments.  The 
 directors of a company may collect an advance premium or an 
 assessment for the purpose of maintaining surplus funds in its 
 treasury to be used in payment of losses or expenses.  

    Subd. 2.    Secretary's duties.  It shall be the duty of 
 the secretary or chosen manager, after the assessment is 
 completed, to immediately notify every person composing the 
 company, by letter sent to the person's usual post office 
 address, of the amount of the loss, and the sum due as the 
 person's share thereof, and of the time when and to whom the 
 payment is to be made, but this time shall not be less than 60, 
 nor more than 90, days from the date of the notice, and every 
 person designated to receive this money may demand and receive 
 two percent in addition to the amount due on the assessment, as 
 aforesaid, for fees in receiving and paying over the same.  

    Subd. 3.    Member subject to suit and directors' 
 liability.  Suits at law may be brought against any member of 
 the company who refuses or neglects to pay any assessment.  The 
 articles may eliminate or limit a director's personal liability 
 to the company or its members for monetary damages for breach of 
 fiduciary duty as a director.  The articles shall not eliminate 
 or limit the liability of a director: 

    (1) for breach of loyalty to the company or its members; 

    (2) for acts or omissions made in bad faith or with 
 intentional misconduct or knowing violation of law; 

    (3) for transactions from which the director derived an 
 improper personal benefit; or 

    (4) for acts or omissions occurring before the date that 
 the provisions in the articles eliminating or limiting liability 
 become effective. 

    HIST: 1967 c 395 art 8 s 17; 1975 c 15 s 14; 1986 c 444; 1989 
 c 130 s 5,6