J. MILLARD TAWES, Governor                     1135

(b) An order to show cause why a receiver, conservator, rehabili-
tator or liquidator of the insurer should not be appointed is issued
while his policy is in force or within three years after its termi-
nation.

297.    Aggregate Liability.

No one policy or subscriber as to such policy, shall be assessed or
charged with an aggregate of contingent liability as to obligations
incurred by a domestic reciprocal insurer in any one calendar year,
in excess of the amount provided for in the power of attorney or
in the subscribers' agreement, computed solely upon premium earned
on such policy during that year.

298.    Nonassessable Policies.

(a)   If a reciprocal insurer has a surplus of assets over all liabili-
ties at least equal to the minimum capital stock and surplus required
of a domestic stock insurer authorized to engage in like kinds of
insurance business, upon application of the attorney and as approved
by the subscribers' advisory committee the Commissioner shall issue
his certificate authorizing the insurer to extinguish the contingent
liability of subscribers under its policies then in force in this State,
and to omit provisions imposing contingent liability in all policies
delivered or issued for delivery in this State for so long as all such
surplus remains unimpaired.

(b)   Upon impairment of such surplus, the Commissioner shall
forthwith revoke the certificate. Such revocation shall not render sub-
ject to contingent liability any policy then in force and for the re-
mainder of the period for which the premium has theretofore been
paid; but after such revocation no policy shall be issued or renewed
without providing for contingent assessment liability of the sub-
scriber.

(c)   The Commissioner shall not authorize a domestic reciprocal
insurer so to extinguish the contingent liability of any of its sub-
scribers or in any of its policies to be issued, unless it qualifies to
and does extinguish such liability of all its subscribers and in all
such policies for all kinds of insurance transacted by it. Except, that
if required by the laws of another state in which the insurer is
transacting insurance as an authorized insurer, the insurer may
issue policies providing for the contingent liability of such of its
subscribers as may acquire such policies in such state, and need not
extinguish the contingent liability applicable to policies theretofore
in force in such state.

299.    Dividends on Policies.

From time to time the attorney for the subscribers of any such
reciprocal insurer, under the provisions of this section, may fix and
determine savings to be paid to each subscriber or policyholder on
participating policies or contracts from the earned surplus of such
reciprocal insurer, and when fixed shall establish an adequate sur-
plus from which such savings are to be paid. No such savings shall
be fixed or paid if by the payment thereof the minimum surplus or
other required surplus of such reciprocal insurer will be impaired.
In fixing or paying any such savings the attorney for the sub-
scribers of such reciprocal insurer may make reasonable classifica-